e-MedSoft.com Reports 100 Percent Increase in Sequential Revenue
Growth
Business Wire - November 19, 1999 03:02
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Nov. 19, 1999--
Gross Profit Margin Increases 33 Percent and Operating Expenses As a
Percentage of Sales Decline 25 Percent
e-MedSoft.com. (OTCBB:MDTK) announced today its results from operations for the second quarter ended Sept. 30, 1999
of fiscal 2000.
Revenues for the quarter increased 100 percent to $8,868,529 as compared to $4,443,251 for the preceding three-month
period ended June 30, 1998. Net loss for the quarter was $1,912,539 or $.04 per basic share, as compared to a net loss of
$2,528,416 or $.05 per basic share for the quarter ended June 30, 1999.
Revenues for the six months ended Sept. 30, 1999 increased 32 percent to $13,311,780 as compared to pro forma revenues
of $10,102,259 for the same period ending Sept. 30, 1998. Net loss for the period was $4,440,956 or $0.08 per basic
share.
Because e-Medsoft.com did not begin operations until January of the current year, there were no prior year periods presented
on a historical basis for year-over-year comparisons.
The company significantly improved its gross profit margin to 24 percent of sales as compared to 18 percent of sales in the
prior quarter -- a 33 percent improvement. Additionally, the company cut its operating expenses to 44 percent of sales
representing a 25 percent improvement as compared to 59 percent of sales in the quarter ended June 30, 1999.
In summary, e-MedSoft.com's revenues were up 100 percent, gross profit margin increased 33 percent, and operating
expenses as a percentage of sales declined 25 percent for the quarter ended Sept. 30, 1999 as compared to the preceding
quarter ended June 30, 1999.
Commenting on e-MedSoft.com's second quarter results, the company's President and CEO John Andrews stated, "We are
very pleased with the huge increase that we were able to generate in second quarter revenues. During the quarter, we signed
several new agreements for our company's core e-MedSoft.com online medical information and transaction processing
software, including an exclusive 10-year contract with University Affiliates IPA, an Affiliate of the University of Southern
California School of Medicine and the nation's largest fully-accredited IPA. Additionally, we retained the services of
Donaldson, Lufkin & Jenrette to provide investment banking services in connection with our ongoing discussions and
opportunities related to strategic acquisitions and other growth initiatives. We are confident that we can continue to experience
significant revenue growth as we move into the third and fourth quarters of our fiscal year."
About e-MedSoft.com
e-MedSoft.com, with its core medical software product being sold under the trade name e-MedSoft.com, is leading a
transition in the medical industry, as it is the first subscription-based healthcare management system available for delivery
through the Internet. Users of the software are charged a small up front installation fee, and an ongoing subscription fee based
on transaction volume.
The medical software is a complete healthcare management system. Through the Internet, its Java-based integrator, utilizing
Sun Microsystems Inc.'s (Nasdaq:SUNW) Java technology, allows the e-MedSoft.com software to communicate across
diverse platforms and languages in unlimited capacity, allowing for the interlink of doctors, hospitals, clinics, HMOs, insurance
companies, financiers and government agencies.
The ease and low cost with which it can be implemented, its Internet connectivity, and its ability to allow for the exchange of
information across diverse platforms and systems bode well for its widespread adoption by the medical community.
Additionally, through e-MedSoft.com's well-established and highly respected subsidiary -- the e-Net Technology group of
companies -- it is possible for e-MedSoft.com to assure expansion of its technologies to industries and geographies beyond
healthcare.
This, in turn, assures maximum penetration into the healthcare industry in view of the intricate connection of healthcare into
every industry. e-Net Software provides leading edge, competitive, Web-based solutions designed and implemented to drive
a clients' Internet business to success. e-Net Software's products are built on the foundations of speed, ease of use, security,
scalability and resilience, and are continually advancing to ensure current and future business needs are met.
e-Net Software is a subsidiary of the e-Net Technology group of companies, which also includes e-Net Systems Ltd.
(formerly Relay Business Systems Ltd.) and IFA Systems Ltd. All of these companies are owned by e-MedSoft.com. The
e-Net group removes the complexity of Web-enabling key business processes with a complete range of Internet Managed
Services and Information Technology solutions, and by utilizing strategic partners Sun Microsystems, Oracle Corp. and Cisco
Systems Ltd.
For more information, see mdtk.com, internetstockmarket.com and
www.enetgroup.co.uk.
Statements in this news release that relate to management's expectations or beliefs concerning future plans, expectations,
events and performance are "forward-looking" within the meaning of the federal securities laws. Actual results or events could
differ materially from those anticipated in the forward-looking statements due to a variety of factors, including, without
limitation, acceptance by customers of the company's products, changing technology, competition in the healthcare market,
government regulation of healthcare, the company's limited operating history, general economic conditions, and availability of
capital.
Java and 100 percent Pure Java are trademarks of Sun Microsystems Inc. in the United States and other countries. All other
trademarks, tradenames, registered trademarks or registered tradenames are the property of their respective holders.
E-MEDSOFT.COM
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Six Months
Ended Ended
09/30/99 09/30/99
Net Sales $8,868,529 $13,311,780
Cost of Sales 6,778,559 10,408,058
Gross Profit 2,089,970 2,903,722
Operating Expenses:
Research and development 638,602 886,561
Sales and marketing 1,035,564 1,647,339
General and administrative 1,860,773 3,266,751
Depreciation and amortization 361,989 706,508
Total Operating Expenses 3,896,928 6,507,159
Operating Income (Loss) (1,806,958) (3,603,437)
Other Income (Expense)
Interest income (expense), net (167,089) (1,502,366)
Other income (expense), net (679) 2,897
Income (Loss) Before Income
Taxes and Extraordinary Income (1,974,726) (5,102,906)
Extraordinary Income 0 357,152
Income (Loss) Before Income Taxes (1,974,726) (4,745,754)
Tax Benefit of Operating
Loss Carryforwards 62,187 304,798
Net Income (Loss) ($1,912,539) ($4,440,956)
Net Income Per Common Share ($0.04) ($0.08)
Weighted average number of
basic and diluted common
shares outstanding 52,972,074 52,452,618
BALANCE SHEET HIGHLIGHTS
(Unaudited)
For the Period Ended
09/30/1999 03/31/1999
Current Assets $ 9,003,075 $ 6,735,976
Total Assets 24,948,980 17,462,908
Current Liabilities 14,903,991 8,378,191
Long-term debt 2,326,454 2,971,867
Shareholders' Equity $ 7,718,535 $ 6,112,850
CONTACT: Magnum Financial Group, LLC
Michael Manahan, 213/488-0443
msmanahan@magnumfinancial.com
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