EATONTOWN, N.J., April 18 /PRNewswire-FirstCall/ -- QMed, Inc. (Nasdaq Symbol: QMED) today announced financial results for the first quarter ending February 29, 2008. Revenue for the three-month period decreased to $751,788 from $1,728,676 in the prior year's quarter. Net loss for the quarter was $(999,184) or $(0.06) per share on a diluted basis, compared to net loss of $(1,057,776) or $(0.06) per share on a diluted basis, for the same period a year ago.
Income from discontinued operations of our managed care segment for the three-month period ended was $487,185 or $0.03 per share on a diluted basis, compared to a loss of $(1,447,795) or $(0.08) on a diluted basis the previous year. The income from discontinued operations reported within the first quarter of 2008 is primarily attributable to a non-cash reversal of approximately of $1.0 million related to the reduction in the Incurred But Not Reported and Paid liability and the corresponding medical expense.
Subsequent to February 29, 2008, the Company received a $375,000 secured loan for working capital and under certain conditions can receive an additional $375,000 as described in detail in the March 20, 2008 press release and in the notes to the Company's financial statements.
Given the continuing losses and the Company's current cash position available for working capital, the financial statements contain a disclosure about the Company's ability to continue as a going concern.
About QMed, Inc.
QMed has developed evidence-based clinical information management systems for use by health plan customers. The QMed systems incorporate Disease Management services to patients and decision support to physicians. The Company's subsidiaries have specialized in serving high-risk populations of Medicare beneficiaries.
Except for historical information contained herein, matters discussed in this news release are forward-looking statements that involve risks and uncertainties. They include but are not limited to those relating to the timely implementation of programs, the impact of competitive product introductions, acceptance and pricing, and those risks detailed in the Company's filings with the Securities and Exchange Commission (SEC). Actual results may differ materially from any forward-looking statements due to these risks and uncertainties.
Contact: William Schmitt, QMed, Inc. - 732-544-5544 x1112 QMED, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS February 29, November 30, 2008 2007 ASSETS (unaudited) Current assets Cash and cash equivalents $ 403,546 $ 1,196,030 Accounts receivable, net of allowances for doubtful accounts of $75,100 and $58,980, respectively 399,639 535,810 Prepaid professional fees 203,000 228,000 Prepaid expenses and other current assets 393,595 189,654 Assets related to discontinued operations 4,644,835 6,126,492 6,044,615 8,275,986 Property and equipment, net 632,239 717,229 Product software development costs, net 1,615,865 1,769,931 Acquired intangibles, net 379,773 421,224 Other assets 135,123 137,190 $ 8,807,615 $ 11,321,560 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $ 2,063,790 $ 1,607,840 Leases payable, current portion 26,700 41,116 Accrued salaries and commissions 191,025 245,888 Fees reimbursable to health plans 20,050 12,900 Contract billings in excess of revenues 197,380 197,380 Income taxes payable 11,353 12,786 Liabilities related to discontinued 1,964,443 3,952,421 operations 4,474,741 6,070,331 Leases payable -- long term 50,206 49,134 Accrued severance payable, long term 12,410 309,258 4,537,357 6,428,723 Commitments and Contingencies Stockholders' equity Common stock $.001 par value; 40,000,000 shares authorized; 17,042,959 shares issued and 17,020,959 outstanding, respectively 17,043 17,043 Paid-in capital 54,935,081 54,558,476 Accumulated deficit (50,606,241) (49,607,057) 4,345,883 4,968,462 Less treasury stock at cost, 22,000 common shares (75,625) (75,625) Total stockholders' equity 4,270,258 4,892,837 $ 8,807,615 $ 11,321,560 QMED, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Restated For the For the Three Months Three Months Ended Ended February 29, February 28, 2008 2007 Revenue $ 751,788 $ 1,728,676 Cost of revenue 330,741 731,099 Gross profit 421,047 997,577 Selling, general and administrative expenses 1,844,056 2,224,207 Research and development expenses 60,203 427,795 Loss from continuing operations (1,483,212) (1,654,425) Interest expense (7,660) (7,979) Interest income 6,264 100,902 Loss from operations of joint venture - (18,146) Other (expense) income (44) 1,975,400 (Loss) income before income tax provision and discontinued operations (1,484,652) 395,752 Provision for income taxes (1,717) (5,733) (Loss) income before discontinued operations (1,486,369) 390,019 Discontinued Operations: Income (Loss) from operations 487,185 (1,447,795) Net loss $ (999,184) $ (1,057,776) Basic (loss) income per share Weighted average shares outstanding 17,020,959 16,892,163 Basic (loss) income per share -- continuing operations $ (.09) $ .02 Basic income (loss) per share -- discontinued operations .03 (.08) Basic (loss) income per share $ (.06) $ (.06) Diluted (loss) income per share Weighted average shares outstanding 17,020,959 17,997,358 Diluted (loss) income per share -- continuing operations $ (.09) $ .02 Diluted income (loss) per share -- discontinued operations .03 (.08) Diluted (loss) income per share $ (.06) $ (.06)
