DALLAS, Feb. 16 /PRNewswire-FirstCall/ -- Claimsnet.com inc. (BULLETIN BOARD: CLAI) , a leading provider of Internet-based business-to- business solutions for the healthcare industry, today reported its results for fiscal year 2005 and 4th quarter 2005, which ended December 31, 2005.
For the year ended December 31, 2005, the Company reported revenues of $1,266,000, a 21% increase from the $1,046,000 reported for fiscal 2004.
Cost of revenues were $778,000 compared to $663,000, a 17% increase. Selling, general and administrative expenses of $723,000 were reported for 2005, representing a 35% reduction from the $1,106,000 in fiscal 2004.
The Company reported a gross profit of $488,000 for the fiscal year of 2005, compared with a gross profit in fiscal year 2004 of $383,000. The loss from operations for fiscal 2005 was $235,000, a 67% decrease from the loss of $723,000, reported in fiscal 2004. The net loss for fiscal year 2005 was $279,000, or $.01 per share, compared to $657,000, or $.03 per share, in the prior year, which included a $91,000 gain on the settlement of liabilities.
For the three months ended December 31, 2005, the Company reported revenues of $323,000, a 3% increase from the revenues of $315,000 reported for the fourth quarter of fiscal year 2004.
Expenses for the quarter decreased from the year earlier period. Cost of revenues increased 15% to $195,000 in 2005 from $170,000 last year. Selling, general and administrative expenses of $160,000 this year represented a 49% decrease from the $312,000 reported for the fourth quarter of 2004.
The Company reported its tenth consecutive quarterly gross profit in the fourth quarter of 2005 totaling $128,000, compared with a gross profit of $145,000 in the fourth quarter of 2004. The fourth quarter loss from operations was $32,000, a decrease of 81% from the loss of $167,000 reported in the fourth quarter last year. The net loss for the quarter was $44,000, or $.00 per share, as compared with a net loss of $177,000, or $.01 per share, in the same quarter last year, a reduction of 75%.
"Our financial results for fiscal 2005 and the fourth quarter of fiscal year 2005 reflect a continued focus on expense control during a revenue growth year for the Company," commented Don Crosbie, chief executive officer of Claimsnet. "The financial progress reflected in our improved operating results related to both increased revenue and decreased expenses. Although revenue growth slowed in the fourth quarter, we are fully focused on a renewed strategy of revenue growth for the Company in fiscal year 2006."
Claimsnet.com inc. is a leading provider of Internet-based claim processing solutions for the healthcare payer industry, including distinctive, advanced ASP technology. Headquartered in Dallas, Claimsnet offers systems that are distinguished by ease of use, customer care, security and measurable cost advantages. More information on Claimsnet can be found at the Company's web site at http://www.claimsnet.com/ .
Safe Harbor Statement Under the Private Securities Litigation Act 1995 - With the exception of historical information, the matters discussed in this press release are forward looking statements that involve a number of risks and uncertainties. The actual future results of the company could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to, maintaining access to external sources of capital, regulatory actions, success of marketing strategies, actions of the Company's competitors, dependence on suppliers and distribution channels, and continued use of the Internet. Further information on the Company's risk factors is contained in the Company's quarterly, annual, and other periodic reports as filed with the Securities and Exchange Commission.
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CLAIMSNET.COM INC. AND SUBSIDIARIES
SUMMARY OPERATIONS STATEMENT INFORMATION
(In thousands except per share data)
Year Ended
December 31,
2005 2004
REVENUES $1,266 $1,046
COST OF REVENUES $778 $663
GROSS PROFIT (LOSS) $488 $383
SELLING, GENERAL AND ADMINISTRATIVE $723 $1,106
LOSS FROM OPERATIONS $(235) $(723)
GAIN ON NEGOTIATED SETTLEMENTS OF
LIABILITIES $--- $91
OTHER INCOME (EXPENSE) $(44) $(25)
NET LOSS $(279) $(657)
NET LOSS PER COMMON SHARE -
BASIC AND DILUTED $(0.01) $(0.03)
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING -
BASIC AND DILUTED 25,812 24,461
