AMICAS Announces the Substantial Completion of the Financial Statement Portion of its 2005 Annual Audit and Filing of Form 12b-25 with the Securities and Exchange Commission

BOSTON, March 17 /PRNewswire-FirstCall/ -- AMICAS, Inc. , a leader in radiology and medical image and information management solutions, today announced the substantial completion of the annual financial statement portion of its audit by its independent registered public accounting firm as of and for the year ended December 31, 2005 and the release of its updated financial results. The Company's independent registered public accounting firm is currently in the process of completing its audit of internal controls over financial reporting required by Section 404 of the Sarbanes-Oxley Act of 2002. The annual audit will be complete upon conclusion of the integrated audits of both the financial statements and internal controls over financial reporting.

(Photo: http://www.newscom.com/cgi-bin/prnh/20060202/AMICASLOGO )

As previously announced in the Company's preliminary earnings release dated February 17, 2006 for the fourth quarter and year ended December 31, 2005, the Company, under the direction of its audit committee, was then in the process of looking into a question involving $300,000 of its service revenues for the first half of 2005. The audit committee process is now complete and did not result in any change to the financial statements.

In the 2005 financial presentation, the Company has reclassified its internal implementation and support costs within the cost of revenue in its statement of operations instead of as part of selling, general and administrative expenses. As a result, the 2004 and 2005 quarterly statements of operations have been revised to reflect the cost of maintenance and services including the salaries, benefits and other allocated indirect costs related to the delivery of services and maintenance revenue.

Because the independent registered public accounting firm is finalizing its integrated audit and completing its audit of the Company's internal controls over financial reporting, the Company is unable to timely file its Form 10-K for the fiscal year ended December 31, 2005. AMICAS has filed Form 12b-25 with the Securities and Exchange Commission and the 10-K will be filed no later than the fifteenth calendar day following the prescribed due date of March 16, 2006. Although the annual financial audit is substantially complete, the numbers presented today are subject to change until the filing of our financial statements on Form 10-K.

About AMICAS, Inc.

AMICAS, Inc. (http://www.amicas.com/) is a leader in radiology and medical image and information management solutions. The AMICAS(R) Vision Series(TM) products provide a complete, end-to-end solution for imaging centers, ambulatory care facilities, and radiology practices. Acute care and hospital clients are provided a fully-integrated, HIS/RIS-independent PACS, featuring advanced enterprise workflow support and scalable design. Complementing the Vision Series product family is AMICAS Insight Services(SM), a set of client-centered professional and consulting services that assist our customers with a well-planned transition to a digital enterprise.

Safe Harbor Statement

Except for the historical information herein, the matters discussed in this release include forward-looking statements. In particular, the forward-looking statements contained in this release include statements about future financial and operating results. All forward-looking statements in this release are qualified by these cautionary statements and are made only as of the date of this release. AMICAS is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise. The financial statements and information as of, and for the period ended, December 31, 2005 contained in this press release are subject to review by the Company's independent registered public accounting firm.

CONTACT: Sarah Carmody, Investor Relations [e-mail], Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share data) Year Ended Dec. 31, Three Months Ended 2005 March 31 June 30 Sept. 30 Dec. 31 Revenues Maintenance and services $8,422 $8,933 $9,692 $9,766 36,813 Software licenses and system sales 3,661 3,863 3,920 4,554 15,998 Total revenues 12,083 12,796 13,612 14,320 52,811 Costs and expenses Cost of revenues: Maintenance and services 3,226 3,497 3,754 3,686 14,163 Software licenses and system sales, includes amortization 1,431 1,381 1,282 2,319 6,413 of software costs of $498, $489, $489, $489 and $1,966 respectively Selling, general and administrative 6,197 5,002 4,820 4,682 20,701 Research and development 2,358 2,211 2,286 2,192 9,047 Depreciation and amortization 493 467 441 376 1,777 Settlement of earn-out 1,085 468 193 187 1,933 Settlement of litigation - - 2,471 250 2,721 Restructuring charges 691 332 - - 1,023 15,481 13,358 15,247 13,692 57,778 Operating income (loss) (3,398) (562) (1,635) 628 (4,967) Non-operating income (expense) Interest income 413 514 751 838 2,516 Interest expense (747) (2) (2) - (751) Income (loss) from continuing operations, before income taxes (3,732) (50) (886) 1,466 (3,202) (Benefit) provision for income taxes (1,480) (19) (346) 648 (1,197) Income (loss) from continuing operations (2,252) (31) (540) 818 (2,005) Gain on Sale of discontinued operations, net of taxes of $33,906 46,073 - - 204 46,277 Income (loss) from discontinued operations (3) - (25) (29) (57) Net income (loss) $43,818 $(31) $(565) $993 $44,215 Net income (loss) per share Basic: Continuing operations $(0.05) $(0.00) $(0.01) $0.02 $(0.04) Discontinued operations 1.03 - (0.00) 0.00 1.00 $0.98 (0.00) $(0.01) $0.02 $0.96 Diluted: Continuing operations $(0.05) $(0.00) $(0.01) $0.02 $(0.04) Discontinued operations 1.03 - (0.00) 0.00 1.00 $0.98 $(0.00) $(0.01) $0.02 $0.96 Weighted average number of shares outstanding: Basic 44,530 45,169 47,208 48,064 46,285 Diluted 44,530 45,169 47,208 50,894 46,285 AMICAS, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share data) Year Ended Dec. 31, Three Months Ended 2004 March 31 June 30 Sept. 30 Dec. 31 Revenues Maintenance and services $6,541 $7,269 $7,459 $8,274 $29,543 Software licenses and system sales 2,924 2,723 3,291 3,838 12,776 Total revenues 9,465 9,992 10,750 12,112 42,319 Costs and expenses Cost of revenues: Maintenance and services 3,497 3,331 3,093 3,139 13,060 Software licenses and system sales, includes 1,443 1,177 1,628 1,906 6,154 amortization of software costs of $794, $794, $794, $794 and $3,178 respectively Impairment of capitalized software - - - 3,229 3,229 Selling, general and administrative 6,286 6,183 6,371 6,984 25,824 Research and development 2,405 2,248 2,413 2,422 9,488 Depreciation and amortization 562 515 490 401 1,968 Settlement of earn-out - - - 2,402 2,402 Settlement of litigation - - - 500 500 Restructuring charges 325 - 285 867 1,477 Impairment charges - - - 1,196 1,196 14,518 13,454 14,280 23,046 65,298 Operating income (loss) (5,053) (3,462) (3,530) (10,934) (22,979) Non-operating income (expense) Interest income 26 27 42 68 163 Interest expense (373) (351) (367) (408) (1,499) Income (loss) from continuing operations, before income taxes (5,400) (3,786) (3,855) (11,274) (24,315) (Benefit) provision for income taxes 75 75 75 1,975 2,200 Income (loss) from continuing operations (5,475) (3,861) (3,930) (13,249) (26,515) Income (loss) from discontinued operations 3,291 3,870 3,559 3,338 14,058 - Net income (loss) $(2,184) $9 $(371) $(9,911) $(12,457) Net income (loss) per share Basic: Continuing operations $(0.13) $(0.09) $(0.09) $(0.30) $(0.61) Discontinued operations 0.08 0.09 0.08 0.08 0.32 $(0.05) 0.00 $(0.01) $(0.23) $(0.29) Diluted: Continuing operations $(0.13) $(0.09) $(0.09) $(0.30) $(0.61) Discontinued operations 0.08 0.09 0.08 0.08 0.32 $(0.05) $0.00 $(0.01) $(0.23) $(0.29) Weighted average number of shares outstanding: Basic 43,371 43,438 43,552 43,887 43,563 Diluted 43,371 43,438 43,552 43,887 43,563 AMICAS, Inc. Condensed Consolidated Balance Sheet (Unaudited) (In thousands, except share data) December 31, December 31, Assets 2005 2004 Current assets: Cash and cash equivalents $82,214 $12,634 Accounts receivable, net 15,316 11,423 Computer hardware held for resale 127 279 Deferred income taxes, net - 28,200 Prepaid expenses and other current assets 1,025 3,053 Current assets of discontinued operations - 10,551 Total current assets 98,682 66,140 Property and equipment, net 1,259 1,988 Goodwill 27,313 27,313 Acquired/developed software, net 9,623 11,580 Other intangible assets, net 2,511 2,938 Other assets 897 1,447 Non-current assets of discontinued operations - 22,480 Total assets $140,285 $133,886 Liabilities and stockholders' equity Current liabilities: Accounts payable and accrued expenses $11,151 $12,045 Deferred revenue, including unearned discounts 8,495 10,474 Current portion long-term debt - 9,657 Other current liabilities - - Current liabilities discontinued operations - 13,996 Total current liabilities 19,646 46,172 Long-term debt - 19,017 Non-current liabilities of discontinued operations - 2,813 Other liabilities, primarily unearned discounts 726 1,229 Stockholders' equity: Preferred stock $.001 par value; 2,000,000 shares authorized; - - none issued and outstanding Common stock $.001 par value; 200,000,000 shares authorized; 50 46 50,355,684 and 46,338,568 shares issued Additional paid-in capital 222,927 211,888 Accumulated deficit (96,592) (140,807) Treasury stock, at cost, 1,985,502 shares (6,472) (6,472) Total stockholders' equity 119,913 64,655 Total liabilities and stockholders' equity $140,285 $133,886
Photo: http://www.newscom.com/cgi-bin/prnh/20060202/AMICASLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk [e-mail]