Looks like our boy is on the move again:
A.D.A.M. Software, Inc. Reports Fourth Consecutive Profitable Quarter And First Profitable Year
ATLANTA -- A.D.A.M. Software, Inc. (Nasdaq: ADAM) today announced results for its fourth quarter and fiscal 1998 year-end.
For the fourth quarter ended March, 31, 1998, the Company reported a profit of $44,000 or $0.01 per share compared to a loss of $893,000 or $0.17 a share for the same period last year. Revenues for the fourth quarter increased 40% to $1,576,000 from $1,128,000 from the same period last year.
For the 1998 fiscal year ended March 31, 1998, A.D.A.M. Software, Inc. reported a profit of $578,000 or $0.12 per share compared to a loss of $5,441,000 or $1.03 per share for fiscal 1997. Revenues for fiscal 1998 increased 50% to $6,888,000 from $4,591,000 for fiscal 1997.
"A.D.A.M. has made significant progress by opening up new revenue streams, controlling expenses and repositioning ourselves to take advantage of the Internet in all our market segments," said Robert S. Cramer, Jr., A.D.A.M.'s chairman and CEO. "A.D.A.M.'s fiscal 1998 profit represents the start of building what we believe can be a profitable, totally unique company with a recognized brand name and vast proprietary content assets."
A.D.A.M.'s recently announced relationship with CNN Newsource Sales, a division of CNN, is off to a strong start. CNN Newsource Sales has licensed a special compilation of ADAM content, entitled the "A.D.A.M. Medical Graphics and Reference System", to nine local metropolitan markets and to the CNN Networks including CNN and CNN Headline News. A.D.A.M. content is
used to help illustrate and enhance health and medical news coverage by providing advanced A.D.A.M. graphics on the inner workings of the human body. Importantly, each time A.D.A.M. content is aired, a special A.D.A.M. logo must be displayed on screen which shows the A.D.A.M. trademark and the company's web address.
"We believe that millions of people on a regular basis will have the chance to see A.D.A.M. content on television, and they may be inclined to consult our web site for more information. This could open up some tremendous opportunities for A.D.A.M. Software," said Mr. Cramer.
A.D.A.M.'s healthcare initiatives are also off to a strong start. The Company has hired an experienced healthcare sales executive, William Bowen, from IDX Systems Corp., and is offering Active X-enabled components of its content libraries for integration into healthcare information systems. A.D.A.M. debuted the components at the HIMSS conference in February and has generated strong initial interest, especially in using A.D.A.M.'s dissectible anatomy component as a graphical user interface for the electronic patient record.
Additionally, in the fourth quarter, A.D.A.M. licensed its online encyclopedias and some of its visual content to leading health-oriented web sites, including Endeavor Technologies (webMD), Empower Health and CommuniHealth. A.D.A.M. is also working with pharmaceutical companies on sales force training using A.D.A.M.'s existing educational programs, and on product launches and marketing programs through custom development of A.D.A.M.'s 32-gigabyte database of medical imagery. Additionally, A.D.A.M.'s new legal product line, MLI's Winning Medical Illustrations, has shown steady quarterly sales increases since its launch last fall. The Company has completed four modules, including the General Case Collection, Head and Neck, Back and Spine, and Lower Limb. The products are used in the preparation of demonstrative evidence in medically related litigation.
The A.D.A.M. education division, which accounted for a majority of the Company's revenues in fiscal 1998, is well positioned for the strong educational selling season during the upcoming June and September quarters. A.D.A.M plans to introduce three new products in the next few months, including A.D.A.Media and A.D.A.Media Pro, which contain hundreds of anatomical illustrations and movies for use in presentations, and Anatomy Practice, an undergraduate version of the award-winning A.D.A.M. Practice Practical. In addition, the Company recently released 3D Library, volume 2, a 3-D model collection including the eye, ear, brain, female and male reproductive, which serves as a companion to A.D.A.M.'s flagship program, A.D.A.M. Interactive Anatomy.
As previously announced, a new relationship with Mindscape, a division of The Learning Company, to sell A.D.A.M.'s K-12 products will result in a minimum of $700,000 of revenue to A.D.A.M. over a two-year calendar period ending in 1999. A.D.A.M. marketing initiatives, including a training program for A.D.A.M. products at over 25 educational sites nationwide, a new round of grant seminars and a competitive upgrade program, are helping to stimulate the education market. Additionally, a strong A.D.A.M partner, Addison Wesley Longman, the leading undergraduate anatomy and physiology textbook publisher and a division of Pearson, PLC, has agreed to bundle certain A.D.A.M. products directly with their print textbooks.
Based in Atlanta, GA, A.D.A.M. Software is a leading developer of anatomy/medical content (2D and 3D imagery, animations and text) and software technologies. In addit to licensing content and software components, A.D.A.M. creates, publishes and markets multiple award-winning multimedia software products, content and Internet-ready applications that provide anatomical, medical and health-related information for the education, consumer and healthcare professional markets. For more information, please visit the A.D.A.M. corporate web site (www.adam.com) or view a special preview web site to see samples of A.D.A.M.'s online content offerings (anatomy.adam.com).
Statements in this news release concerning future results, performance or expectations are forward-looking statements. Actual results, performance or developments could differ materially from those expressed or implied by such forward-looking statements as a result of known and unknown risks, uncertainties and other factors including those described from time to time in the Company's filings with the Securities and Exchange Commission, press releases and other communications.
A.D.A.M. Software, Inc.
Summary Financial Information
(in thousands, except per share amounts)
Statements of Operations (unaudited)
Three Months Ended Twelve Months Ended
March 31, March 31,
1998 1997 1998 1997
Net Revenues $ 1,576 $ 1,128 $ 6,888 $ 4,591
Cost of revenues: 306 351 1,178 1,280
Gross Profit 1,270 777 5,710 3,311
Gross Profit Margin 81% 69% 83% 72%
Operating expenses:
Sales and marketing 610 994 2,778 4,494
Product development 380 321 1,512 2,260
General and administration 363 501 1,293 2,369
Restructuring Charge --- --- --- 490
Total operating expenses 1,353 1,816 5,583 9,613
Operating loss (83) (1,039) 127 (6,302)
Interest income (expense),
net 127 146 526 861
Income (loss) before income
taxes 44 (893) 653 (5,441)
Income tax expense --- --- (75) ---
Income (loss) before
extraordinary item 44 (893) 578 (5,441)
Extraordinary loss from
early extinguishment
of debt, net of income
tax benefit of $29
Net income (loss) $ 44 $ (893) $ 578 $(5,441)
Income (loss) per
common share $ 0.01 $ (0.17) $ 0.12 $ (1.03)
Weighted average number of
common shares and
share equivalents
outstanding 4,852 5,274 4,955 5,258
Summary Balance Sheet Data
3/31/98 3/31/97
Cash and short term investments $ 8,334 $10,968
Accounts receivable - net 1,239 638
Inventories 467 375
Total current assets 10,197 12,089
Total assets 11,739 13,662
Total liabilities 1,026 2,107
Stockholders' equity 10,714 11,555
Working capital 9,171 9,982
/CONTACT: Robert S. Cramer, Jr., Chairman and CEO, A.D.A.M. Software,
Inc., 770-980-0888, ext. 3003/
"Copyright(c) 1998, PR Newswire"
"Provided by Dow Jones & Company, Inc." |
