ProxyMed Announces 1997 Fourth Quarter and Year End Results; Continues to Build Clinical Network Connectivity, Access to 70% of U.S. Pharmacies
- First Financial Transactions Reported in Fourth Quarter -
March 6, 1998 07:15 AM
FT. LAUDERDALE, Fla., March 6 /PRNewswire/ -- ProxyMed, Inc. PILL , a healthcare information systems company, today reported results for the fourth quarter and the year ended December 31, 1997.
Net sales for the fourth quarter of 1997 increased 225% to $3,130,940, compared to net sales of $964,662 reported in the fourth quarter last year. The Company reported a net loss of $3,374,897, or $0.30 per diluted share, compared to a net loss of $1,774,087, or $0.19 per diluted share reported in the same period of 1996. Weighted average shares outstanding during the quarter increased to 11,415,601 from 9,539,565 during the comparable period last year.
Net sales for the twelve-month period ended December 31, 1997 were $10,931,969, compared to $3,054,151 reported in the same period last year. Excluding the one-time purchased research and technology charges from the acquisitions of Clinical MicroSystems, Inc., and Hayes Computer Systems, Inc. made earlier in 1997, the Company's loss from operations was $10,317,164, or $1.00 per share, compared to a loss from operations of $4,305,293, or $0.61 per share during the same period of 1996. Including these charges for the 1997 twelve-month period, the net loss was $18,517,122 or $1.75 per diluted share, compared to a net loss of $2,853,735 or $0.39 per diluted share in 1996. Weighted average shares outstanding during the twelve-month period increased to 10,589,333 from 7,660,383 during the comparable period last year.
Bennett Marks, ProxyMed's Executive Vice President of Finance, said, "ProxyMed continues to capitalize on the increasing need for healthcare providers to electronically receive both clinical and financial data through electronic data interchange (EDI). During the three-month period, we were pleased to deliver revenues which reflected immediate sales from our recently acquired financial transaction business, constituting medical claims and encounters between physicians and payors. Our ClinScan(TM) software was implemented in seven labs connecting physicians to the labs for orders and results. ProxyCare(TM), which has completed beta testing at a PharMerica Inc. DOSE pharmacy and an Integrated Health Services, Inc. IHS nursing home, is being well received by the institutional marketplace. Going forward, we expect increased clinical and financial transactions and increased software license revenue."
Harold S. Blue, ProxyMed's Chairman and Chief Executive Officer, said, "Connecting physicians to pharmacies, labs, payors and nursing homes is our core competency. ProxyMed has spent the last several years developing this connectivity through our national healthcare information network, ProxyNet(TM). What differentiates ProxyNet is the ability to add value by offering both clinical and financial content on one platform. The healthcare market is responding to our strategy as evidenced by our recent agreements with IDX Systems Corp. IDXC , Eclipsys Corporation, Kinetra, formerly IMS MEDACOM(R) Networks, and The Reynolds and Reynolds Company REY which combined have a physician customer base of 220,000 physicians. Additionally, Merck-Medco Managed Care, L.L.C. is building connectivity to ProxyMed's physician customer base so that they can process prescriptions electronically and publish and distribute their multiple formularies. From these strategic relationships, ProxyMed is forging ahead, offering numerous types of transactions and beginning to realize recurring revenue growth. There are also cross-selling opportunities that we are realizing as evidenced by extending our existing Reynolds and Reynolds electronic commerce agreement to also enable ProxyMed to offer its physician customers medical claims processing besides prescription connectivity."
Mr. Blue concluded, "We expect ProxyMed to further grow its EDI business through internal growth and acquisitions. While we made significant investments that affected our results for 1997, we understand market needs and feel confident that our focused efforts over the past 36 months will be rewarded in 1998. With economies of scale, increased revenue and healthy gross margins, ProxyMed is poised for bottom line growth this year."
ProxyMed, Inc., based in Ft. Lauderdale, Florida, is a healthcare information service company that provides on-line clinical and financial electronic data interchange (EDI) services to physicians. ProxyMed connects physicians to pharmacies, commercial and hospital laboratories, payors, nursing homes and managed care companies through its secure national healthcare information network, ProxyNet.
Note: This News Release contains "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements include assumptions, beliefs and opinions relating to ProxyMed's growth strategy based upon ProxyMed's interpretation and analysis of healthcare industry trends and management's ability to successfully develop, implement, market and sell its secure network transaction processing services, software programs, clinical databases and financial transaction services to physicians and other healthcare providers. This strategy assumes that physicians will prefer "one-stop shopping" for its products and services and that ProxyMed will be able to successfully develop, acquire, maintain and upgrade competitive clinical and financial transaction sets and successfully integrate them with ProxyMed's existing products and services. This strategy also assumes that ProxyMed will be able to successfully develop and execute its strategic relationships, especially with the providers of information systems to physicians under ProxyMed's electronic commerce partner program, and with pharmacy chains, independent pharmacy owners and pharmacy information system vendors. Many known and unknown risks, uncertainties and other factors, including general economic conditions and risk factors detailed from time to time in ProxyMed's Securities and Exchange Commission filings, may cause these forward-looking statements to be incorrect, and may cause actual results to be materially different from any future results expressed or implied by these assumptions, opinions and beliefs. ProxyMed expressly disclaims any intent or obligation to update any forward-looking statements.
More information on ProxyMed is available on its home page at proxymed.com.
PROXYMED, INC. AND SUBSIDIARIES
Consolidated Statements of Operations (unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
1997 1996 1997 1996
Net sales $3,130,940 $964,662 $10,931,969 $3,054,151
Cost and expenses
Cost of sales 1,668,760 710,243 6,877,480 1,327,423
Selling, general and
administrative
expenses 4,613,147 2,175,189 13,293,353 5,709,433
Depreciation and
amortization 413,794 53,246 1,078,300 322,588
6,695,701 2,938,678 21,249,133 7,359,444
Operating loss (3,564,761) (1,974,016) (10,317,164)(4,305,293)
Other income (expense):
In-process research and
development technology165,556 -- (8,467,098) --
Gain on sale of assets -- 21,094 -- 1,014,989
Interest, net 24,308 178,835 267,140 436,569
Net loss (3,374,897) (1,774,087) (18,517,122)(2,853,735)
Dividends on cumulative
preferred stock -- -- -- 95,803
Net loss applicable to
common
shareholders $(3,374,897) $(1,774,087) $(18,517,122)$(2,949,538)
Weighted average shares
outstanding 11,415,601 9,539,565 10,589,333 7,660,383
Basic and diluted net loss
per share of common stock$(0.30) $(0.19) $(1.75) $(0.39)
PROXYMED, INC. AND SUBSIDIARIES
Balance Sheet Highlights
December 31, 1997 (unaudited)
Cash and cash equivalents $ 2,654,423
Total assets $19,603,121
Total liabilities $ 6,451,369
Total stockholders' equity $13,151,752
SOURCE ProxyMed, Inc. |
