BOSTON, Feb. 25 /PRNewswire-FirstCall/ -- AMICAS, Inc. , a leader in radiology and medical image and information management solutions, today reported unaudited financial results for the fourth quarter and year ended December 31, 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20060202/AMICASLOGO ) Q4 Financial Highlights
Revenue: Total revenue for the fourth quarter of 2008 was $11.7 million, compared to $11.7 million for the fourth quarter of 2007.
Non-GAAP Operating Loss: Operating loss, excluding impairment charges, for the fourth quarter of 2008 was $1.6 million, compared to an operating loss of $1.9 million for the fourth quarter of 2007.
Adjusted EBITDA: Adjusted EBITDA, a non-GAAP financial measure, was a loss of $320,000 for the fourth quarter of 2008 as compared to a loss of $437,000 for the fourth quarter of 2007.
Non-GAAP Net Loss/Income: The Company's net loss, excluding impairment charges, for the fourth quarter of 2008 was $1.2 million as compared to a net loss of $902,000 for the fourth quarter of 2007.
Impairment: In the fourth quarter of 2008, the Company incurred a $27.5 million impairment charge of which $27.3 million relates to goodwill and $0.2 million relates to internal use purchased software. The goodwill charge was primarily due to the sustained decline in the market value of the Company's equity during the fourth quarter of 2008. The Company does not expect that the non-cash charge will have a material impact on its financial condition, cash flow, or liquidity.
Operating Loss: Operating loss for the fourth quarter of 2008 was $29.1 million as compared to an operating loss of $1.9 million for the fourth quarter of 2007.
Net Loss/Income: The Company's net loss for the fourth quarter of 2008 was $28.7 million, or $0.81 per share, including impairment charge of $27.5 million, or $0.78 per share, compared to a net loss of $902,000, or $0.02 per share, for the fourth quarter of 2007.
Cash and Cash Flow: AMICAS ended the fourth quarter of 2008 with a cash, cash equivalents, and marketable securities balance of $55.0 million, no long term debt, and working capital of $47.0 million. For the fourth quarter ended December 31, 2008, net cash provided by operations was $1.2 million.
Stock Repurchase: In the fourth quarter of 2008, the Board of Directors directed the Company to initiate a $5 million stock repurchase plan. The Company repurchased approximately 193,000 shares of its common stock for approximately $290,000 in the fourth quarter of 2008.
Fiscal Year-to-Date Financial Highlights
Revenue: Total revenue for the year ended December 31, 2008, was $50.4 million, compared to $49.9 million for the year ended December 31, 2007.
Non-GAAP Operating Loss: Operating loss, excluding impairment, for the year ended December 31, 2008, was $4.6 million, compared to a non-GAAP operating loss of $4.5 million for the year ended December 31, 2007.
Adjusted EBITDA: Adjusted EBITDA, a non-GAAP financial measure, was $233,000 for the year ended December 31, 2008, compared to $759,000 for the year ended December 31, 2007.
Non-GAAP Net Loss/Income: The Company's net loss, excluding impairment, for the year ended December 31, 2008, was $2.6 million compared to a non-GAAP net loss of $862,000 for the year ended December 31, 2007.
Impairment: As noted above, in the fourth quarter of 2008, the Company incurred a $27.5 million, or $0.78 per share, impairment charge of which $27.3 million relates to goodwill and $0.2 million relates to internal use purchased software. The goodwill charge was primarily due to the sustained decline in the market value of the Company's equity during the fourth quarter of 2008. The Company does not expect that the non-cash charge will have a material impact on its financial condition, cash flow, or liquidity.
Operating Loss: Operating loss for the year ended December 31, 2008, was $32.1 million, compared to an operating loss of $4.5 million for the year ended December 31, 2007.
Net Loss/Income: The Company's net loss for the year ended December 31, 2008, was $30.1 million, or $0.77 per share including impairment charges of $27.5 million or $0.71 per share, compared to a net loss of $862,000, or $0.02 per share, for the year ended December 31, 2007.
Cash Flow: For the year ended December 31, 2008, net cash provided by operations was $4.4 million as compared to $7.0 million for in the year ended 2007.
Stock Repurchase: During the fiscal year ended December 31, 2008, the Company repurchased 9.4 million shares of its common stock in accordance with the repurchase plans announced by the Company during the year. In aggregate, the Company has repurchased a total of 14.3 million shares for approximately $40.3 million since 2006.
Business Perspective
Dr. Stephen Kahane, president, chief executive officer, and chairman of AMICAS, said, "We had our best quarter of bookings in the history of AMICAS. This is the third consecutive quarter in which we delivered record bookings for the Company. Revenue growth was modest, mainly due to our signing more multi-year customer relationships. In addition, we now have record non-recurring backlog and deferred revenue as well as several commitments from customers that are not captured in these metrics."
Dr. Kahane went on to say, "We delivered positive cash flows from operations every quarter in 2008. We did this while building our business through significant investments in both innovative research and development programs and important distribution initiatives. In the fourth quarter, several additional large radiology groups made the decision to use AMICAS products as the basis for their automation infrastructure going forward. Over the past year, AMICAS has been able to sign a number of very sophisticated and informed radiology groups and imaging service providers. We will continue to work hard to help these new partners succeed and to make sure others follow in their footsteps. Our top flight solutions -- which include the latest in teleradiology technology, PACS, RIS, revenue cycle management, business intelligence, and zero client referring physician tools -- continue to be viewed as extremely attractive as a result of the potential return on investment that can be delivered. It is noteworthy that, despite obstacles such as DRA and other reimbursement-related pressures such as increasing requirements related to pre-authorizations for studies, and despite the condition of the economy overall, these groups made the decision to take their automation support to the next level with industry leading offerings from AMICAS."
Dr. Kahane continued, "We believe that, especially in this challenging economic and imaging reimbursement environment, the delivery of record bookings for three quarters in a row reflects the progress we have made in sales execution and general company operations. At the same time, we have been diligent in our assessment of acquisition opportunities and, until very recently, have been reluctant to make a big move in this area. Our signing of a definitive agreement to acquire Emageon is a big move and one that we are extremely excited about. Our high recurring revenue, strong cash position, and positive cash flow from operations combined with zero debt, record bookings and non-recurring backlog and deferred revenue give us confidence that we are in an excellent position to execute well on the integration of Emageon."
Dr. Kahane added, "We remain committed to continuing to build a strong company focused on providing excellent innovative image and information management solutions in healthcare. We have established a significant presence and a strong reputation in the radiology and imaging marketplace. We expect the Emageon acquisition to expand our position significantly, and to provide us with similar stature in the cardiology market, another important market with significant image and information management needs."
Conference Call
AMICAS will host a conference call on Thursday, February 26, at 8:30 a.m. Eastern Time to discuss the Company's 2008 fourth quarter and year end results. Investors and other interested parties may dial in to the call using the toll free number 1-800-862-9098. (conference ID: 7AMICAS). The conference call will also be available via Webcast at http://www.amicas.com/. Following the conclusion of the call, a replay will be available at 1-800-374-1375 or 1-402-220-0682 until March 26, 2009.
AMICAS, AMICAS PACS, AMICAS RIS, AMICAS Financials, AMICAS Documents, AMICAS Dashboards, AMICAS Watch, AMICAS Reach, AMICAS RadStream, RealTime Worklist, Halo Viewer, and Cashfinder Worklist are trademarks, service marks or registered trademarks and service marks of AMICAS, Inc. All other trademarks and company names mentioned are the property of their respective owners.
About AMICAS, Inc.
AMICAS, Inc. (http://www.amicas.com/) is a leader in radiology and medical image and information management solutions. The AMICAS One Suite(TM) of products provides a complete, end-to-end solution for imaging centers, ambulatory care facilities, and radiology practices. Acute care and hospital clients are provided with a fully integrated, hospital information system-independent PACS that features advanced enterprise workflow support and scalable design. Complementing the AMICAS solution suite is AMICAS Professional Services(TM), 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 our anticipated financial and operating results. When used in this press release, the words: believes, intends, plans, anticipates, expects, estimates, and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions, and uncertainties that could cause actual results to differ materially which include, but are not limited to, the following: a significant portion of the Company's quarterly sales are concluded in the last month of the fiscal quarter; the length of sales and delivery cycles; the deferral and/or realization of deferred software license and system revenues according to contract terms; the timing, cost, and success or failure of current and new product and service introductions and product upgrade releases; potential patent infringement claims against AMICAS and the related defense costs; the ability of AMICAS to comply with all government laws, rules, and regulations; and other risks affecting AMICAS' businesses generally and as set forth in AMICAS' most recent filings with the Securities and Exchange Commission (SEC), including the section entitled "Risk Factors" of our most recent annual report on Form 10-K, and subsequent quarterly reports on Form 10-Q. 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, 2008, contained in this press release are subject to review by the Company's independent registered public accounting firm.
Non-GAAP financial measures
Adjusted EBITDA refers to net income, adjusted for amortization, depreciation, impairment, interest, taxes, severance, and stock compensation expense. A reconciliation of net loss/income as determined under GAAP to adjusted EBITDA is included below. Non-GAAP operating loss refers to operating loss less impairment charges. Non-GAAP net loss refers to net loss less impairment charges.
Management believes that its adjusted EBITDA measurement, non-GAAP operating loss, and non-GAAP net loss, when viewed in addition to the Company's reported GAAP results, provides an additional meaningful measure of operating performance, enabling investors to more thoroughly evaluate current performance in comparison to past performance. This information will necessarily differ from comparable information that may be provided by other companies and should not be considered in isolation or as an alternative to the Company's operating and other financial information determined under GAAP. A reconciliation of net loss to adjusted EBITDA and net loss to non-GAAP loss and non-GAAP operating is included below.
Bookings are defined as contractual commitments from customers for licenses, services, hardware, and maintenance/support.
Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except share data) December 31, December 31, 2008 2007 Assets Current assets: Cash and cash equivalents $7,366 $8,536 Marketable securities 47,627 67,071 Accounts receivable, net of allowances of $158 and $231, respectively 10,224 10,483 Prepaid expenses and other current assets 2,261 2,931 Total current assets 67,478 89,021 Property and equipment, less accumulated depreciation and amortization of $7,495 and $6,848, respectively 965 1,186 Goodwill - 27,313 Acquired/developed software, less accumulated amortization of $10,195 and $7,992, respectively 5,805 8,008 Other intangible assets, less accumulated amortization of $2,144 and $1,742, respectively 1,256 1,658 Other assets 1,594 1,255 Total Assets $77,098 $128,441 Liabilities and stockholders' equity Current liabilities: Accounts payable and accrued expenses $4,156 $7,094 Accrued employee compensation and benefits 1,611 1,451 Deferred revenue 14,657 10,375 Total current liabilities 20,424 18,920 Unrecognized tax benefits 1,379 1,275 Commitments and contingencies Stockholders' equity: Preferred stock $.001 par value; 2,000,000 shares authorized; none issued - - Common stock $.001 par value, 200,000,000 shares authorized, 51,473,965 and 51,296,823 issued, respectively 51 51 Additional paid-in capital 230,905 229,056 Accumulated other comprehensive income 100 60 Accumulated deficit (128,549) (98,478) Treasury stock, at cost, 16,270,088 and 6,824,192 shares (47,212) (22,443) Total stockholders' equity 55,295 108,246 Total Liabilities and Stockholders' Equity $77,098 $128,441 Condensed Consolidated Statements Of Operations (Unaudited) (in thousands, except per share data and footnotes) Three Months Ended Twelve Months Ended December 31, December 31, 2008 2007 2008 2007 Revenues Maintenance and services $9,965 $9,645 $39,886 $38,175 Software licenses and system sales 1,727 2,007 10,467 11,713 Total revenues $11,692 11,652 50,353 49,888 Costs and expenses Cost of revenues: Maintenance and services (a) $4,139 4,134 17,679 16,469 Software licenses and system sales, including amortization of software costs of $572, $489, $2,204, and $1,957, respectively 1,420 1,326 7,000 6,486 Selling, general, and administrative (b) 5,348 5,662 20,512 21,810 Research and development (c) 2,143 2,115 8,657 8,527 Depreciation and amortization 249 284 1,084 1,119 Impairment charges 27,490 - 27,490 - 40,789 13,521 82,422 54,411 Operating loss (29,097) (1,869) (32,069) (4,523) Interest income 406 991 2,187 3,870 Loss on sale of investments - - (31) - Loss before provision for income taxes (28,691) (878) (29,913) (653) Provision for income taxes 7 24 158 209 Net loss $(28,698) $(902) $(30,071) $(862) (Loss) income per share Basic: $(0.81) $(0.02) $(0.77) $(0.02) Diluted: $(0.81) $(0.02) $(0.77) $(0.02) Weighted average number of shares outstanding Basic 35,329 44,746 38,842 44,657 Diluted 35,329 44,746 38,842 44,657 (a) - includes $31,000, $30,000, $138,000, and $107,000 in stock-based compensation expense for the three and twelve months ended December 31, 2008, and December 31, 2007, respectively. (b) - includes $0.3 million, $0.2 million, $1.0 million, and $1.5 million in stock-based compensation expense for the three and twelve months ended December 31, 2008, and December 31, 2007, respectively. (c) - includes $93,000, $67,000, $413,000, and $267,000 in stock-based compensation expense for the three and twelve months ended December 31, 2008, and December 31, 2007 respectively. CONDENSED Consolidated Statements Of Cash Flows (Unaudited) (in thousands) Twelve Months Ended December 31, 2008 2007 Operating activities Net loss $(30,071) $(862) Adjustments to reconcile net (loss) income to cash provided by operating activities: Amortization of software development costs 2,204 1,957 Depreciation and amortization 1,084 1,119 Impairment charges 27,490 - Loss on disposal of fixed assets 6 - Non-cash stock compensation expense 1,524 1,878 Provisions for (recoveries from) bad debts 115 185 Changes in operating assets and liabilities: Accounts receivable 145 719 Prepaid expenses and other 330 1,100 Accounts payable and accrued expenses (2,777) 493 Deferred revenue including unearned discount 4,282 (889) Unrecognized tax benefits 103 1,275 Cash provided by operating activities 4,435 6,975 Investing activities Purchases of property and equipment (645) (510) Purchase of software - (2,300) Purchases of held-to-maturity securities (236,147) (94,898) Maturities of held-to-maturity securities 237,739 100,263 Purchases of available-for-sale securities (37,033) (45,275) Sales of available-for-sale securities 54,925 37,340 Cash provided by (used in) investing activities 18,839 (5,380) Financing activities Repurchases of common stock (24,769) (803) Exercise of stock options 325 413 Cash used in financing activities (24,444) (390) (Decrease) increase in cash and cash equivalents (1,170) 1,205 Cash and cash equivalents at beginning of period 8,536 7,331 Cash and cash equivalents at end of period $7,366 $8,536 Supplemental disclosure of cash paid during the period for: Income taxes, net of refunds $140 $91 Non-cash investing activities: Unrealized gain on available-for-sale securities $39 $64 Three Months Ended Twelve Months Ended Reconciliation of Net Loss December 31, December 31, to Non-GAAP Net loss 2008 2007 2008 2007 Net loss $(28,698) $(902) $(30,071) $(862) Impairment charges 27,490 - 27,490 - Non-GAAP net loss $(1,208) $(902) $(2,581) $(862) Reconciliation of Three Months Ended Twelve Months Ended Net loss to December 31, December 31, Non-GAAP Operating 2008 2007 2008 2007 loss Net loss $(28,698) $(902) $(30,071) $(862) Provision for income taxes 7 24 158 209 Interest income 406 991 2,187 3,870 Loss on sale of investments - - (31) - Operating loss (29,097) (1,869) (32,069) (4,523) Impairment charges 27,490 - 27,490 - Non-GAAP operating loss $(1,607) $(1,869) $(4,579) $(4,523) Reconciliation of Three Months Ended Twelve Months Ended net loss to December 31, December 31, adjusted EBITDA 2008 2007 2008 2007 Net loss $(28,698) $(902) $(30,071) $(862) Provision for income taxes 7 24 158 209 Interest income 406 991 2,187 3,870 Loss on sale of investments - - (31) - Operating loss (29,097) (1,869) (32,069) (4,523) Non-cash stock compensation expense 467 331 1,524 1,878 Depreciation and amortization 249 284 1,084 1,119 Amortization of software development costs 571 489 2,204 1,957 Severance charges - 328 - 328 Impairment charges 27,490 - 27,490 - Adjusted EBITDA $(320) $(437) $233 $759 Important additional information:
This press release is neither an offer to purchase nor a solicitation of an offer to sell shares of Emageon. The tender offer for shares of Emageon's stock described in this press release has not yet been commenced.
At the time the tender offer is commenced, a subsidiary of AMICAS intends to file with the SEC and mail to Emageon's stockholders a Tender Offer Statement on Schedule TO and related exhibits, including the offer to purchase, letter of transmittal and other related documents, and Emageon intends to file with the SEC and mail to its stockholders a Tender Offer Solicitation/Recommendation Statement on Schedule 14D-9 in connection with the transaction. These documents will contain important information about AMICAS, Emageon, the transaction, and other related matters. Investors and security holders are urged to read each of these documents carefully when they are available.
Investors and security holders will be able to obtain free copies of the Tender Offer Statement, the Tender Offer Solicitation/Recommendation Statement, and other documents filed with the SEC by AMICAS and Emageon through the Web site maintained by the SEC at http://www.sec.gov/. In addition, investors and security holders will be able to obtain free copies of these documents by contacting the Investor Relations departments of AMICAS or Emageon.
CONTACT:
Colleen McCormick, Investor Relations
617-779-7892
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