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SIMS Communications Reports Fiscal Year Results; Revenues Increase 228%; Gross Profit Increases 337%
IRVINE, Calif.--(BUSINESS WIRE)--Oct. 6, 1999--SIMS Communications Inc. (Nasdaq:SIMS) Wednesday reported that revenues for its 1999 fiscal year ending 6/30/99, increased 228% to $2.25 million from $981,000 in the previous year.
Gross profit increased 337% to $1.5 million from $457,000 and gross profit margin increased to 68.8%. Other highlights from the report indicated long-term debt declined to $125,000, total liabilities were reduced to $2.2 million from $3.37 million and shareholders' equity increased to $4.1 million from $2.2 million.
The company reported a net loss for the year comparable to one from the previous period. Major factors contributing to this loss were an aggressive write-off of non-productive assets from old business units and investments in the company's new Internet health-care business.
This business includes JustMed.com, a health-care Web portal site at www.justmed.com and Med Store, a Web commerce site selling home medical equipment products.
Both were launched on July 1, 1999. In addition, other components of JustMed.com include JustMed Online, an Internet version of its MedCard paperless medical verification and billing system for doctors; Med Auction, a medical equipment auction site that will serve both the health-care industry and consumers; and other health-care related Internet projects.
SIMS Communications provides electronic transaction solutions for the health-care industry. The company recently launched its wholly owned subsidiary, JustMed.com, an Internet health-care Web portal and its electronic commerce Med Store located at justmed.com. This content-rich Web site is designed to appeal to both consumers and health-care industry professionals.
The company's products include: its MedCard System, a system that provides 100% paperless electronic data entry at the physician's office for all medical insurance billings and collections, and the One Medical Service System, a cost-effective solution that gives pharmacies the ability to provide a complete, one-stop shopping solution for all of its customers' home medical equipment (HME) and home health-care related service needs.
This release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, reliance on key strategic alliances, fluctuations in operating results and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission.
SIMS Communications
Balance Sheet
Assets
Current Assets:
Cash and cash equivalents $439,772
Accounts receivables 250,913
Inventories 464,074
Prepaid expenses 100,337
Notes receivable 150,000
Total current assets 1,405,096
Property and equipment 2,059,602
Other Assets:
Notes receivable 241,200
Licensing rights 885,558
Patents 327,299
Royalty advances 515,907
Goodwill 819,299
Other 120,901
Total other assets 2,910,164
Total assets $6,374,862
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $649,154
Accrued expenses 622,820
Bank line of credit 250,000
Notes payable 519,119
Current obligations under capital leases 43,432
Dividends payable 58,025
Total current liabilities 2,142,550
Long-term Liabilities: 125,706
Total liabilities 2,268,256
Total stockholders' equity 4,106,606
Total liabilities and stockholders' equity $6,374,862
SIMS Communications
Consolidated Statements of Operations
Year Ended June 30,
1999 1998
Revenue 2,240,876 980,951
Cost of goods and
services sold 697,481 523,479
Gross profit 1,543,395 457,472
Operating expenses 8,323,974 7,179,170
Operating loss (6,780,579) (6,721,698)
Other income (expense) (308,381) (324,313)
Loss from continuing
operations before
income taxes (7,088,960) (7,046,011)
Income tax benefit -- --
Net loss from
continuing operations (7,088,960) (7,046,011)
Net loss from
discontinued operations -- (63,737)
Net loss (7,088,960) (7,109,748)
Earnings applicable to
Preferred Shareholders 58,025 --
Net loss applicable to
common shareholders $(7,146,985) $(7,109,748)
Basic and diluted loss
per common share from
continuing operations $(0.67) $(1.78)
Basic and diluted loss
per common share from
discontinued operations $ -- $ (.01)
Basic and diluted net
loss per common share $(0.67) $(1.79)
CONTACT: SIMS Communications, Irvine
Marvin S. Berger, 949/261-6665
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