DALLAS, April 28 /PRNewswire-FirstCall/ -- Claimsnet.com inc. (OTC Bulletin Board: CLAI), a leading provider of Internet-based business-to-business solutions for the healthcare industry, today reported its results for the first quarter of fiscal 2009, which ended March 31, 2009.
For the quarter ended March 31, 2009, the Company reported revenues of $519,000, a 6% increase from the $490,000 reported for the first quarter of 2008.
Expenses overall, comprised of cost of revenues and selling, general and administrative expenses increased 12% compared with the first quarter of 2008. Cost of revenues for the first quarter of 2009 was $413,000 compared to $392,000 in the first quarter of 2008, a 5% increase. Selling, general and administrative expenses of $251,000 were reported for the first quarter of 2009, representing a 25% increase from the $201,000 reported in the first quarter of 2008. The increase is primarily due to increased sales personnel in 2009.
The Company reported a gross profit of $106,000 for the first quarter of 2009, compared with a $98,000 gross profit in the first quarter of 2008.
The loss from operations for the first quarter of 2009 was $145,000, compared to a loss of $103,000 reported in the first quarter of 2008. The net loss for the first quarter of 2009 was $157,000, or $0.00 per share, compared to $132,000, or $0.00 per share, in the first quarter of 2008.
"While we are pleased with the 6% growth in sales, our loss from operations increased compared to last year. This increase in loss primarily resulted from the extra investments put into the sales focus of the company. These sales efforts are paying off with the signing of new customers, which led to our increase in sales, and include a new payer customer last week. Our expectation is that over the next several quarters we will see more benefits of these efforts, as these new customer installations get completed. In early April the Company made several adjustments to its work force which will result in lower expenses going forward as we work towards breakeven and profitability. In the event we are further successful in implementing our growth strategy, we believe our current infrastructure is well prepared to allow our operations to expand without significant expense," commented Don Crosbie, Chief Executive Officer of Claimsnet. "Also, the Company reached a milestone in the month of March with more than a million transactions processed in that month. This was the first time that the volume level had reached more than 1 million transactions in a month."
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, Texas, 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/.
Forward-Looking Statements - 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, continued use of the Internet, achieving the anticipated benefits of capital expenditures, and achieving anticipated expense reductions. 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.
[Table to Follow] CLAIMSNET.COM INC. AND SUBSIDIARIES SUMMARY OPERATIONS STATEMENT INFORMATION (In thousands except per share data) (unaudited) Quarter Ended March 31, ---------------- 2009 2008 ----- ----- REVENUES $ 519 $ 490 COST OF REVENUES $ 413 $ 392 GROSS PROFIT $ 106 $ 98 SELLING, GENERAL AND ADMINISTRATIVE $ 251 $ 201 LOSS FROM OPERATIONS $ (145) $ (103) INTEREST EXPENSE $ (12) $ (29) NET LOSS $ (157) $ (132) NET LOSS PER COMMON SHARE - BASIC $(0.00) $(0.00) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED 32,618 26,879
Claimsnet.com inc.
CONTACT: Don Crosbie of Claimsnet.com inc., +1-972-458-1701,
dcrosbie@claimsnet.com
Web Site: http://www.claimsnet.com/
