Healthdyne Information Enterprises, Inc. Reports Record Second Quarter
1998 Results
PR Newswire - July 22, 1998 07:57
Revenues Increase 49% to $6.6 Million Sixth Consecutive Quarter of Higher Revenues
MARIETTA, Ga., July 22 /PRNewswire/ -- Healthdyne Information Enterprises, Inc. (Nasdaq: HDIE) today reported results
for its fiscal second quarter ended June 30, 1998.
For the quarter, revenues increased 49% to a record $6.6 million, compared with $4.4 million in the same period last year. Net
income increased to $620,000, or $0.03 per share, excluding one time merger-related charges, compared with a loss of
$587,000, or $0.03 per share, in the prior year's period.
Including one time merger-related charges of $993,000, HIE reported a second quarter 1998 net loss of $373,000, or $0.02
per share. These charges were related to the business combination with HUBLink, which was accounted for as a
pooling-of-interests.
Software license revenue in the quarter was $3.0 million, a 76% year-over-year increase. Service revenues increased 33% to
$3.6 million.
For the six month period, revenues increased 40% to a record $11.8 million, compared with $8.4 million in 1997. Net income
was $263,000, or $0.01 per share, excluding one time merger-related charges, compared with a loss of $1.6 million, or $0.07
per share, in the prior year.
Year ago results for the second quarter and six months were restated to reflect the merger with HUBLink, Inc. on May 12,
1998.
Robert Murrie, President and Chief Executive Officer, said, "We are extremely pleased to report that the second quarter of
fiscal 1998 was a record for revenues, and represents the sixth consecutive quarter in which HIE posted improved results on a
sequential basis. This quarter represents a record level of profitability."
In addition, revenue backlog was $8.8 million as of June 30, 1998.
Mr. Murrie added, "The May merger with HUBLink has already helped position HIE as an emerging player in the rapidly
growing $2.4 billion applications integration market by leveraging our technology development and customer base. As we
strive to increase revenue, we continue to strengthen our leadership in the healthcare market and have been successful
penetrating new vertical markets such as manufacturing, government, banking and financial services. We added eight new
distributors this quarter in the healthcare and financial sectors."
Mr. Murrie concluded, "We are also pleased by a number of other significant deals, including a multi-license EMerge sale to a
large healthcare system, and our message broker's selection as interface engine of choice to the State of North Carolina."
HIE helps enterprises rapidly integrate their existing and new applications, using the Company's market leading software tools
and strategic and tactical integration services. The Company's tools are used in over 1,000 organizations worldwide, including
the healthcare, financial services, and banking industries. HIE is headquartered in Marietta, Georgia, with offices in Dallas,
Columbus, Nashville, London, England, and Essen, Germany.
HEALTHDYNE INFORMATION ENTERPRISES, INC.
Condensed Consolidated Statement Of Operations
(In thousands, except per share amounts)
Quarter Ended Six Months Ended
6/30/98(a) 6/30/97 6/30/98(a) 6/30/97
(Unaudited)
Revenue:
Software $2,954 $1,678 $4,933 $3,071
Service 3,631 2,735 6,853 5,359
Total revenue 6,585 4,413 11,786 8,430
Costs of revenue:
Software 257 163 479 685
Service 1,652 1,468 3,217 3,070
Total cost of revenue 1,909 1,631 3,696 3,755
Gross profit 4,676 2,782 8,090 4,675
Operating expenses:
Sales and marketing 1,627 1,553 3,048 2,873
Research and development 950 707 1,918 1,420
General and administrative 1,448 1,062 2,679 2,164
Total operating expenses 4,025 3,322 7,645 6,457
Operating earnings (loss) 651 (540) 445 (1,782)
Interest income (expense), net (31) 22 (38) 38
Earnings (loss) before income
taxes 620 (518) 407 (1,744)
Income tax (expense) benefit 0 (69) (144) 99
Net earnings (loss) $620 $(587) $263 $(1,645)
Earnings (loss) per share:
Basic $0.03 $(0.03) $0.01 $(0.07)
Diluted $0.03 $(0.03) $0.01 $(0.07)
Shares used in the computation
of earnings (loss) per share
Basic 22,343 22,916 21,768 23,823
Diluted 23,850 22,916 22,982 23,823
Note a: Excludes one-time merger-related charges resulting from a
polling-of-interests of $993,000, or $0.05 per share.
HEALTHDYNE INFORMATION ENTERPRISES, INC.
Condensed Consolidated Balance Sheet
(In thousands)
June 30, Dec. 31,
1998 1997
(Unaudited)
Cash and cash equivalents $2,061 $7,777
Accounts receivable, net 9,078 5,977
Other current assets 1,426 1,375
Total current assets 12,565 15,129
Intangible assets, net 11,268 11,464
Other assets 2,281 2,347
Total assets $26,114 $28,940
Current maturities of long-term debt 1,476 4,205
Other current liabilities 7,360 8,251
Total current liabilities $8,836 $12,456
Other liabilities 936 792
Shareholders' equity 16,342 15,692
Total liabilities and
shareholders' equity $26,114 $28,940
Except for the historical information contained herein, this press release contains forward-looking statements that involve a
number of risks and uncertainties which could cause actual results to differ materially from those indicated in such
forward-looking statements. Among the important factors that could cause actual results to differ materially from those
indicated by such forward-looking statements are competitive pressures, the mix of software and service revenue, the mix of
direct and indirect sales, sales timing, changes in pricing policies, undetected errors or bugs in the software, delays in product
development, lower-than-expected demand for the Company's software tools or services, business conditions in the healthcare
and other complementary markets, the Company's ability to modify its software for use in non-healthcare industries, risks
associated with possible acquisitions, general economic conditions and the risk factors detailed from time to time in the
Company's periodic reports and registration statements filed with the Securities and Exchange Commission, including the
Company's Annual Report on Form 10-K for the year ended December 31, 1997. By making these forward-looking
statements, the Company does not undertake to update them in any manner except as may be required by the Company's
disclosure obligations in filings it makes with the Securities and Exchange Commission under the Federal securities laws.
For more information visit HIE's web site at hie.com.
"HIE," "HUBLink", and "EMerge" are registered trademarks of Healthdyne Information Enterprises, Inc.
SOURCE Healthdyne Information Enterprises, Inc.
/CONTACT: Robert Murrie, President, Chief Executive Officer of Healthdyne
Information Enterprises, 770-423-8526; or Investor Relations: Gordon McCoun,
or Lauren Felice, or Press: Michael McMullan, all of Morgen-Walke Associates,
Inc., 212-850-5600, for Healthdyne Information Enterprises/
/Web site: morgen-walke.com
hie.com
(HDIE)
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