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Wednesday January 27, 7:43 am Eastern Time
Company Press Release
SOURCE: Healthdyne Information Enterprises, Inc.
HIE Reports 1998 Fourth Quarter and
Year-End Results - Record Revenue
with Increase of 58% to $8.1 Million -
MARIETTA, Ga., Jan. 27 /PRNewswire/ -- Healthdyne Information Enterprises, Inc
(Nasdaq: HDIE - news) today reported results for the fiscal fourth quarter and year ended
December 31, 1998.
For the quarter, revenue increased 58% to a record $8.1 million, compared with $5.1
million in the same period last year. Net earnings for the quarter increased to $1.2 million,
or $0.05 per share, compared with net earnings of $85,000, or $0.00 per share, in the prior
year's period, excluding 1997 acquisition and other non-recurring charges. Including the
non-recurring charges of $6.4 million, HIE reported a fourth quarter 1997 net loss of $6.3
million, or $0.27 per share.
Software license revenue in the quarter was $4.2 million, a 69% year-over- year increase.
Service revenue increased 48% to $3.9 million.
For the full year, revenue increased 50% to a rd ord $27.2 million, compared with $18.1
million in 1997. Net earnings were $2.5 million, or $0.10 per share, excluding one-time
merger-related charges of $993,000 in the second quarter. This compares with a net loss of
$2.2 million, or $0.10 per share, in the prior year, excluding the 1997 non-recurring
charges. Including the 1998 merger-related charges and the 1997 non-recurring charges, net
earnings were $1.5 million, or $0.06 per share compared to a net loss of $8.6 million, or
$0.38 per share for the years 1998 and 1997 respectively. Gross margins expanded to 71%
compared to 61% for the prior year.
During the fourth quarter HIE sold its Integration Service Group (ISG) to Superior
Consultant Holdings Corporation [Nasdaq:SUPC - news] in a cash transaction valued at
$2.2 million. The sale was a strategic move to strengthen HIE's focus on the company's
core business, enterprise application integration (EAI) tools and services.
Revenue backlog was $8.7 million as of December 31, 1998, compared to $8.3 million at
September 30, 1998 and $7.8 million at June 30, 1998, excluding ISG backlog.
Throughout the fourth quarter, HIE continued to expand further into the banking and
finance market with two product technology certifications from the Society for Worldwide
Interbank Financial Telecommunication (S.W.I.F.T.): (1) SWIFTReady Gold accreditation;
and (2) Securities Reformatter Program (SRP) selection.
Subsequent to the year-end, HIE announced a co-marketing agreement with IBM (NYSE:
IBM - news). As part of the agreement, HIE is marketing IBM's MQSeries with the HIE
Message Broker as IBM's recommended middleware messaging sng tion specifically
targeted to the utilities, transportation and government industries.
Robert Murrie, president and chief executive officer, said, ''Sharply higher year-end results
weri driven by our strategy to aggressively pursue distributor agreements within healthcare
and other commercial markets. The IBM and HBOC partnerships exemplify the type of
agreements we are actively pursuing.''
Mr. Murrie concluded, ''We are pleased with both our fourth quarter and year-end results.
For the year, we were successful in executing our strategy resulting in strong software and
services revenue growth. Our improved gross margins combined with our revenue growth
resulted in net earnings for the quarter and for the year. During the quarter, HIE's balance
sheet was improved as DSOs were reduced and our cash position was increased as a result
of aggressive collection efforts and the ISG transaction. HIE is poised for growth in the
EAI market.''
HIE management will discuss earnings results at 10:00 a.m. eastern standard time today
during a conference call. Contact Lauren Felice at 212-850-5600 for information on the
conference call.
About HIE
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 more than 1,200 sites worldwide, including those in the
healthcare, financial services and banking industries. HIE is headquartered in Marietta,
Georgia, with offices in Dallas, Columbus, New York, London, England and Essen,
Germany. For more information visit HIE's web site at hie.com.
HIE CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
Quarter Ended Year Ended
Dec. 31, Dec. 31,
1998 1997(1) 1998(2) 1997(1)
Revenue:
Software $4,198 $2,488 $12,432 $7,388
Service 3,918 2,649 14,752 10,676
Total revenue 8,116 5,137 27,184 18,064
Costs of revenue:
Software 251 140 852 1,026
Service 2,078 1,519 7,102 6,025
Total cost of revenue 2,329 1,659 7,954 7,051
Gross profit 5,787 3,478 19,230 11,013
Operating expenses:
Sales and marketing 1,890 1,174 6,672 5,362
Research and development 1,034 777 3,882 2,977
General and administrative 1,730 1,365 6,084 4,784
Total operating expenses 4,654 3,316 16,638 13,123
Operating earnings (loss) 1,133 162 2,592 (2,110)
Other income (expense), net (34) (20) (101) (90)
Earnings (loss) before income
taxes 1,099 142 2,491 (2,200)
Income tax (expense) benefit 144 (57) - -
Net earnings (loss) $1,243 $85 $2,491 ($2,200)
Earnings (loss) per share:
Basic $0.05 $0.00 $0.10 ($0.10)
Diluted $0.05 $0.00 $0.10 ($0.10)
Shares used in the computation
of earnings (loss) per share
Basic 24,584 23,113 24,031 22,587
Diluted 25,445 23,824 24,867 22,587
(1) Excludes non-recurring chs ges of $6.4 million, or $0.27 per share, in the fourth
quarter and $0.28 per share for the yend ended December 31, 1997.
(2) Excludes one-time merger related charges resulting from a pooling-of-interests of
$993,000, or $0.04 per share.
HIE CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
December 31, December 31,
1998 1997
Cash and cash equivalents $3,167 $7,777
Accounts receivable, net 12,295 5,977
Other cerrent assets 2,077 1,375
Total current assets 17,539 15,129
Intangible assets, net 11,087 11,464
Other assets 2,431 2,347
Total assets $31,057 $28,940
Current maturities of long-term
debt $2,911 $4,205
Other current liabilities 7,684 8,251
Total current liabilities 10,595 12,456
Other liabilities 642 792
Shareholders' equity 19,820 15,692
Total liabilities and
shareholders' equity $31,057 $28,940
This press release includes forward-looking statements in addition to historical
information. The words ''expect,'' ''anticipate,'' ''intend,'' ''plan,'' ''believe,'' ''seek,''
''estimate'' and similar expressions are intended to identify such forward-looking
statements; however, this press release also contains other forward-looking statements in
addition to historical information. The Company cautions that there are various important
factors that could cause actual results to differ materially from those indicated in the
forward-looking statements; accordingly, there can be no assurance that such indicated
results will be realized. 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
the product development, lower-than-expected demand for the Company's software tools or
services, business conditions in the healthcare and other complementary mark ts, 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 Securities and Exchange Commission, including the Company's Annual Report
on Form 10-K for the year ended December 31, 1997 and its Registration Statement on
Form S-3 (Registration No. 333-55703). 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.
''HIE,'' is a registered trademarks of Healthdyne Information Enterprises, Inc.
SOURCE: Healthdyne Information Enterprises, Inc.
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