A.D.A.M. Software, Inc. d/b/a adam.com Reports Fourth Quarter And Fiscal Year End Financial Information
May 24, 1999 05:23 PM
ATLANTA, May 24 /PRNewswire/ -- A.D.A.M. Software, Inc. d/b/a adam.com ADAM today announced results for its fourth quarter and fiscal 1999 year-end.
Revenues for the fourth quarter ended March 31, 1999 were $979,000, a 38% decrease from $1,576,000 from the quarter ended March 31, 1998. For the 1999 fourth fiscal quarter, the Company reported a loss of $1,528,000 or $0.34 per share compared to a profit of $44,000 or $0.01 a share for the 1998 fourth fiscal quarter. Included in the Company's 1999 fourth quarter loss is a restructuring charge of $47,000, or $0.01 per share, for severance costs associated with release of direct sales personnel, and additional expense totaling $316,000 from valuation adjustments of capitalized software development costs as a direct result of the Company's change in focus to an Internet health information company.
Revenues for the year ended March 31, 1999 (fiscal 1999) were $5,242,000, a decrease of 24% from $6,888,000 for the year ended March 31, 1998 (fiscal 1998). For fiscal 1999, adam.com reported a loss of $2,180,000 or $0.48 per share compared to a profit of $578,000 or $0.12 per share for fiscal 1998 due to the Company's change in focus to an Internet health information company and reduced product revenues in the international, educational and consumer markets.
"With the conclusion of fiscal 1999, adam.com has successfully transformed itself into a leading provider of consumer health information online," said adam.com Chairman and CEO Robert S. Cramer, Jr. "The Company has invested heavily in technology and infrastructure to build and operate a high-quality consumer website. The Company has leased office space in San Francisco, California, expanded the senior management team and hired additional staff with the talent and expertise which we believe will allow us to develop leading edge consumer healthcare technologies and operate the adam.com health portal. In less than six months, but reflecting ten years of experience, the Company believes that it has created a world-class consumer health destination at www.adam.com .
Further, as a result of having created or acquired significant proprietary clinical and visual content, we believe we are extremely well positioned for the future.
The Company's existing product and content license agreement with WebMD is expected to generate significant revenues going forward based upon published reports of WebMD's physician subscription commitments, estimated at 180,000 doctors. Under our contract, adam.com receives a monthly fee from WebMD for each physician subscriber who has the appropriate computer equipment to use a specific adam.com product. Both WebMD and Healtheon are adam.com licensees and business partners. We intend to continue to work closely with them in our partnerships during and after the announced merger.
We expect our pending acquisition of drgreene.com to give us a very prominent role in family health on the Internet, important consumer product advertisers and a desirable base of registered users. We believe that adam.com offers sponsors and advertisers the ability to reach an important demographic target and provide innovative offline as well as online marketing opportunities through our software and component products.
The Company has, in a very short period of time, established significant distribution for the adam.com website and consumer content. We believe our strategic partnership with Cox Interactive Media will extend the reach of adam.com and provide distribution to millions of national and local web users. We have also formed revenue partnerships for our content to appear on leading portals, Excite and Netscape Netcenter, all with hotlinks back to the adam.com website. Our agreement with CNN Newsource Sales puts the adam.com Internet address in front of millions of television viewers daily while they are watching local and cable television, and provides revenue.
Now that the adam.com website is launched, we intend to invest heavily in development and marketing for the consumer health destination. We intend to expand by building additional distribution relationships and to continue to expand and invest in proprietary content assets both by internal development and strategic transactions. We intend to make adam.com the leading consumer health destination on the Internet."
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