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Biotech / Medical : AHTC Corp (AHTC)-formerly Advanced Health (ADVH) -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Aloha who wrote (250)	7/1/1998 11:07:00 PM
From: Tom D	Read Replies (1) \| Respond to of 371

ADVH Management = dogs**t. Check this out! Unbelievable!! How could H&Q put out a strong buy on this company on January 5 1998 in light of this? How can any analyst have any recommendation besides SELL on this stock? Why didn't we hear of the CFRA before TODAY? Advanced Health Down 41% On 2Q View, CFO's Resignation By Louis Hau NEW YORK (Dow Jones)-- The outlook for troubled Advanced Health Corp. (ADVH) remains murky after the company announced the resignation of Chief Financial Officer Michael Rogers and said it would report an operating loss in the second quarter. The Tarrytown, N.Y., company, whose shares plunged to a 52-week low on the news, operates a physician-practice management business and provides information systems to health-care providers. On Tuesday, it reported operating difficulties in both businesses. Because of the many problems plaguing the entire physician-practice management sector, market observers were less concerned with Advanced Health's problems in that area than they were with the difficulties the company is experiencing in selling its information-technology software. The resignation of Financial Chief Rogers less than five months after he arrived at the company is also renewing concerns among some market observers about Advanced Health's accounting practices, which came under attack last fall by the Center for Financial Research and Analysis Inc., a Rockville, Md., corporate-accounting watchdog organization. In an October report, CFRA criticized Advanced Health for forgiving $3.6 million in accounts receivable from Madison Medical in June 1997 and then reclassifying the receivable as a management contract in its intangible asset account, which it is amortizing over the 30-year life of its contract with the New York physician practice. At the same time, the corresponding revenue booked during the first six months of 1997 remained on the books, the group said. The result was a boost in revenue, earnings and cash flows from operations during the six-month period, argued the CFRA, which also criticized the company's unusual credit arrangements with Madison Medical. Advanced Health officials weren't immediately available for comment. Some analysts said it was difficult to project earnings because they couldn't reach company executives. Despite Advanced Health's diminished second-quarter outlook, the analysts who currently have 1998 and 1999 earnings estimates have yet to change their numbers, according to First Call Corp. Warburg Dillon Read analyst James Lane dropped coverage of the company Tuesday, but he declined to comment on his decision. As reported earlier, Advanced Health said it will restructure its physician-practice management business and refocus its strategic software sales efforts. The company said it expects to report second-quarter revenue of $17.5 million, an operating loss of $3 million to $4 million and pretax charges of about $8 million. Analysts surveyed by First Call had been expecting earnings of 23 cents a share. For second quarter 1997, the company reported net income of $1.2 million, or 14 cents a primary share, on revenue of $13 million. Advanced Health's shares earlier dropped as low as 5 1/4, passing the previous low of 8 3/4 set Monday. They later inched up to close at 5 1/2, down 3 3/4, or 40.5%, on Nasdaq volume of 6.2 million. Average daily volume is 370,700. - Louis Hau; 201-938-5240; louis.hau@cor.dowjones.com "Dow Jones News Service" "Copyright(c) 1998, Dow Jones & Company, Inc." Tom D