HLIS and HEAL moving
March 09, 1999 17:33
HALIS, INC. Announces Technology Update and Improved Financial Results
ATLANTA, March 9 /PRNewswire/ -- HALIS, INC. (OTC Bulletin Board: HLIS) the Atlanta-based Internet driven Health Care Software and Services Company, announced today that it has made significant investment in its Health Care Enterprise System (HES), added a new member to its board of directors, expanded its marketing and sales channels, and improved its financial results and trends.
HALIS has invested approximately $36 million into the design, development, packaging, market testing, as well as in its formation of sales channels and support structures for its HES software technology. HES is a fully -- functional enterprise wide system that performs over 100 functions (i.e. Medical Accounts Receivable is one function) and is now commercially available. HES functions can be used with both public (Internet / Web) and private (Intranet / Extranet) options available using Internet protocols. Because virtually all of the software technology investment has been expensed and the margins on product sales are high, the Company believes that there is significant financial upside potential that will begin to be realized during this coming fiscal year.
HALIS has added a new member to its board of directors. Dr. Joel R. Greenspan, M.D., M.P.H. has been named as an outside director of the Company. Dr. Greenspan is recently retired from the Centers for Disease Control after 23 years with the organization, where he held the positions of Assistant Director for Planning, Communications, and External Relations and Chief, Surveillance and Information Systems, both for the Division of Sexually Transmitted Diseases Prevention. Paul W. Harrison, Chair of the Board and CEO of the Company said, "We are extremely excited about Joel's participation as a director, and as a business development partner. He possesses years of expertise and knowledge of the value of precise medical information, and is a welcome addition to the Company. Dr. Greenspan will also be one of our business development partners assisting us in the government healthcare sector. He has already brought us sales prospects that could buy or subscribe to more than 100,000 integrated HES program copies and related information content, representing in excess of $100 million in potential new business." Dr. Greenspan said, "Reliable, accessible information is essential for the effective delivery of quality healthcare on a cost-effective basis. For many years, I recognized the need for a low cost, truly integrated information system for the healthcare industry. Up until now, healthcare organizations were plagued with fragmented software programs and databases that produced untimely and poor quality data. After careful review, I believe that HALIS' HES technology is superior and has the capacity to significantly reduce manual paperwork and processing costs, and can dramatically improve the integrated flow of information and the delivery of quality medical services."
The uniqueness of the HES technology is in its design, which incorporates an advanced technology, known as MERAD. It allows one common software utility to access and process logic instructions and data values digitally stored as information content in a database. MERAD is licensed from HealthWatch, Inc. (Nasdaq: HEAL), which owns approximately 22% of HALIS. Because of its design, the Company is able to demonstrate a fully functional version of the HES over the Internet and provide electronic support and upgrades remotely over the Internet. In the long run this will significantly reduce costs to the Company, and make operation and support of the HES more cost effective for users (most of the hidden cost of a traditional information system is in the maintenance and modifications that are requested by users after the initial installation). The Company has been successful in proving that its unique marketing, sales techniques, and pricing structure work. HALIS is currently aggressively marketing the HES to numerous prospective healthcare organizations through its expanded marketing channels by using consultations, Internet driven demonstrations, and actual trial systems (30-90 days). Its pricing structure is designed to offer users a monthly subscription option, which allows buyers to consider the HES a monthly budgeted operating expense rather than a large up-front capital outlay. The Company is presently in negotiation for long-term recurring and high margin contracts, and hopes to reach closure on some of these prospects in the near term.
HALIS continues to improve its financial status month-by-month. In FYE 1997, HALIS' Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was an average loss of approximately ($375,000) per month. In FYE 1998, HALIS' EBITDA improved to an average loss of approximately ($240,000) per month, while it continued to rapidly improve its operations. During the fourth quarter of 1998, HALIS expects to report a positive EBITDA from operations of approximately $150,000 and a positive net income of approximately $900,000 (subject to completion of the Company's year -- end audit and any adjustments that may result therefrom).
Except for the historical information contained herein, this press release contains forward-looking statements, including statements containing the words, "believes," "anticipates," "expects" and similar words. Such forward- looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements. Such factors include, among others: the Company's past operating history and variability of operating results; economic conditions, market acceptance of the Company's software; the competition in the Internet commerce market; and other risk factors referenced in the Company's public filings with the Securities and Exchange Commission.
For information about the Company, contact Ms. Marilyn May, Manager of Investor Relations at 9040 Roswell Road, Suite 470, Atlanta, GA 30350, 770-641-5550, or e-mail at mmay@halis.com .
SOURCE HALIS, INC.
/CONTACT: Marilyn May, Manager of Investor Relations of HALIS, INC.,
770-641-5550/
/Web site: halis.com /
(HLIS)
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