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Wednesday January 13, 5:52 pm Eastern Time
Company Press Release
Dynamic Healthcare Technologies, Inc. Announces Preliminary Fourth Quarter Results
Fourth quarter positions Dynamic for return to profitability
LAKE MARY, Fla.--(BUSINESS WIRE)--Jan. 13, 1999-- Dynamic Healthcare Technologies, Inc., (Nasdaq: DHTI - news) today announced preliminary results for the fourth quarter of 1998. Management anticipates a fourth quarter operating loss of approximately $0.17 to $0.19 per share. However, during the fourth quarter, the company realized record sales bookings of $7.5 million and begins 1999 with the highest new systems backlog in company history at more than $13.8 million. This, together with more than $14.2 million in annualized customer support revenue under contract, positions Dynamic to enter 1999 with a total revenue backlog of $28 million. The company is expected to announce actual results in March.
During the fourth quarter of 1998, Dynamic also completed a functional reorganization and cost reduction plan begun in the second quarter of the year. Completing the plan has reduced the company's base quarterly operating expenses--defined as total operating expenses less the cost of products sold, sales commissions and customer billable expenses--to approximately $6.4 million for the first quarter of 1999 compared with $8.1 million during the first quarter of 1998.
The company attributed the fourth quarter loss to a combination of factors. First, third quarter backlog and delays in delivering certain systems based on customer timetables, in turn, created a delay in recognizing revenue. Second, the late timing of fourth quarter bookings did not generate revenue this period. Third, the functional reorganization and cost reduction plan resulted in one-time costs associated with severance and termination benefits.
As the company moves into 1999, those factors will contribute to a return to profitability. Both fourth quarter bookings and the record backlog will begin to produce revenue as deliveries occur. In addition, with the completion of the functional reorganization and cost reduction plan, Dynamic is entering 1999 with the lowest base operating costs since its series of acquisitions in 1996 and 1997.
In a related matter, the company announced signing a loan modification agreement with Silicon Valley Bank keeping the line of credit in effect although reducing the amount available to $3 million from $5 million. According to company officials, the line of credit, available alternative financing, funds generated by operations and the company's current cash position will be sufficient to meet continuing operating requirements.
Mitchel J. Laskey, president and CEO of Dynamic, commented, ''While 1998 was a difficult year, we believe we are well-positioned for 1999. Our products are excellent. Our customer base is solid. Our sales are moving up and our costs moving down. Record bookings and the highest backlog in our history coupled with the lowest base operating costs assure that we will return to profitability.''
Mr. Laskey said that, with customer acceptance of Dynamic RadPlus--the client/server based radiology information system--and the recent FDA 510K clearance for Dynamic PACSPlus, Dynamic's radiology solution now enjoys a competitive advantage in the marketplace. Also contributing to the sales momentum was the September release of Dynamic CoPathPlus version 2.0. As the de facto standard for anatomic pathology information systems, it offers several integrated capabilities, including Dynamic PICSPlus, an image capture system that links and stores images of diagnostic-quality gross and microscopic specimens with patient information. Both the radiology and pathology solutions make use of an Internet strategy to enable physicians to transmit and view medical images from remote locations.
Mr. Laskey added that management and Dynamic's board of directors are reviewing alternatives to build and enhance strategic relationships to leverage their market advantages and expand upon existing channels of distribution.
The company has scheduled a conference call to discuss the preliminary results for 10:30 a.m. EST, Thursday, January 13. To reserve a line for the call, individuals should dial Noonan/Russo Communications at 212-696-4455 ext. 246. The number for the call itself is 212-346-7489 and callers should dial in five minutes before the call is scheduled to begin. A playback of the call will also be available from 12:30 p.m. Thursday to 12:30 p.m. Friday by calling 1-800-633-8284 and referring to reservation No.11494380.
Dynamic Healthcare Technologies is a leading provider of mission-critical healthcare information systems for clinical services departments and facilities. The company's product line, DynamicVision, is a suite of image-, voice-, and web-enabled systems for anatomic pathology, radiology, laboratory, surgical services and health information management. By making it possible for healthcare professionals to have access to the information they need about a patient anytime and anywhere, Dynamic's information systems contribute to higher quality and more cost-effective delivery of care. Dynamic information systems are installed in more than 600 customer locations across the United States and Canada. The company is headquartered in the greater Orlando area and has a key operations and development center near Boston.
This press release contains forward looking statements that involve a number of risks and uncertainties, including, but not limited to, certain areas beyond the Company's control with respect to future business events and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
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Contact:
Dynamic Healthcare Technologies
Mitchel Laskey (investors)
President & CEO
Cynthia Sucher (media)
Director, Corporate Communications
csucher@dht.com
800-832-3020
or
Noonan/Russo Communications, Inc.
212-696-4455
Meredith Milewicz ext. 228 (investors)
Heather Hennessy ext. 274 (media)
e-mail: news@noonanrusso.com |
