CyberCare, Inc. (Nasdaq:CYBR), today announced second quarter financial results. Net revenue increased 10.4% to $9,884K for the six months ending June 30, 2002, compared to the same period a year ago and 4.4% to $4,912K for the quarter. Operating loss was reduced 40% year over year for the quarter to $4,258K and 37% from the first to second quarter of 2002.
Net losses were reduced by 38% to $4,916K year over year for the quarter, 6% comparing six months ending June 30 year over year. For the quarter, the company experienced a loss of $0.07 per share. Net cash used in operating activities was reduced 54.8% from $14,784K for the six months ending June 30, 2001 to $6,682K for the six months ending June 30, 2002.
Operating losses in the technology businesses have been reduced by 62% comparing quarter to quarter, and 59% for the six months comparing 2002 to 2001.
"We are pleased with the progress we are making in strengthening the overall financial position of the company. Improvements continue on both legacy and operational issues. Our ability to ensure adequate cash flow is critical to our ongoing success. More work must be done to increase revenue in the technology division and improve operating margins in the service businesses. We will continue to focus on earnings in lieu of revenue in the services business in order to mitigate our overall losses," said Joe Forte, President and CEO of CyberCare, Inc. "We have plans in place to continue to improve the balance sheet and drive profitable technology revenue. Our modified revenue and go to market models within the technology business are making progress. We expect to see improved top line results within technology in the very near future. Our goal is to continue to cut overall losses in half, quarter to quarter and then drive operational profitability. As we increase technology revenue, we will significantly enhance our financial operating position."
The company experienced a significant increase in interest expense $1,065K for the six months ending June 30, 2002 as compared to $77K for the same period last year due to the need to borrow additional operating funds through convertible debentures. The company is making every attempt to bring additional cash into the company on more favorable terms, as well as, reduce the amount of outstanding debentures.
On August 14, 2002, the company signed definitive documents securing the funding announced in principal on August 13, 2002. The senior convertible debt is for up to $2,000,000 for working capital purposes.
Segment performance for the quarter ending June 30, 2002 was as
follows:
PTR PCS Total Tech Other Consol-
Services idated
-------- -------- -------- -------- -------- --------
Net Revenue $2,740 $2,001 $4,741 $171 $ 0 $4,912
-------- -------- -------- -------- -------- --------
Operating
Gain - (Loss) ($57) ($215)1 ($272) ($2,360) ($1,388) ($4,020)
-------- -------- -------- -------- -------- --------
Net Gain -
(Loss) ($84) ($215)1 ($299) ($2,360) ($2,257)3 ($4,916)
-------- -------- -------- -------- -------- --------
EPS 2 ($0.001) ($0.003) ($0.004) ($0.032) ($0.031) ($0.067)
-------- -------- -------- -------- -------- --------
Note:
(1) PCS incurred one-time charges of $210,000 for the quarter.
(2) For the quarter ending June 30, 2002, the company had 73,026K shares of common stock outstanding.
(3) Corporate incurred a one time net loss on the sale of the Tallahassee Sleep Disorder Center of $239K.
"We are continuing to face an uphill battle in the services businesses and are increasing our focus on the profitable clinics in an effort to increase earnings," said Dana Pusateri Executive Vice President, CyberCare, Inc.
About CyberCare, Inc.
CyberCare, Inc. is a holding company, which is primarily composed of a services business comprising both a physical therapy and rehabilitation business and a pharmacy business, and a healthcare technology solutions business. Our overall goal is to improve the delivery and quality of healthcare for patients while adding incremental value to our customers' clinical and business processes. Our physical therapy and rehabilitation business operates clinics throughout the State of Florida. Its caring staff of clinicians and therapists compliment traditional primary care, orthopedic and neurological physician services and serves a wide range of patients requiring physical and occupational therapy and other rehabilitation services. Our pharmacy business supports thousands of patients and residents in assisted living and other long-term care facilities located in Florida. It also is licensed for mail order distribution across all fifty states.
Our healthcare technology business utilizes its intellectual property, including patented technology, to deliver tele-health solutions addressing the entire continuum of care. It's Electronic HouseCall(R) (EHC(TM)) hardware and software technology focuses on the chronically ill, wellness management, compliance and wound care. The EHC(TM) family of products and services permit enhanced physician supervision and oversight and enable remote medical and wellness monitoring and real-time interactive communications between patients and caregivers. This is made possible through various monitoring devices, hardware and software applications and our ability to establish an interactive network across the health care continuum and among a community of users and providers. In combination with our customers' clinical and business processes, the Electronic HouseCall(R) system allows for effective and efficient data collection, integration and security, while successfully supporting case management and promoting personal participation and interaction. CyberCare, Inc. is headquartered in Boynton Beach, Florida. Visit our website at cybercare.net.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties, including, but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, product acceptance and effectiveness, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.
CyberCare, Inc., Boynton Beach
Media Contact:
Alan Adelson, 561/742-5000
cybercare.net |
