DALLAS, May 10, 2011 /PRNewswire/ -- Claimsnet.com inc. (OTCBB: CLAI), a leading provider of Internet-based business-to-business solutions for the healthcare industry, today filed an amendment to its Quarterly Report on Form 10-Q which was originally filed with the Securities and Exchange Commission ("SEC") on April 29, 2011, to correct the accounting treatment for the adoption of FASB issued ASU No. 2010-28, When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts, on January 1, 2011. Additional information on the effect of the correction in our financial statements as a result of this restatement is contained in Note 7 - Restatement of Financial Statements appearing elsewhere in the report.
For the quarter ended March 31, 2011, the Company reported revenues of $573,000, a 1% decrease from the $578,000 reported for the first quarter of 2010.
Expenses overall, comprised of cost of revenues and selling, general and administrative expenses increased 4% compared with the first quarter of 2010. Cost of revenues for the first quarter of 2011 was $434,000 compared to $414,000 in the first quarter of 2010, an increase of 5%. Selling, general and administrative expenses of $176,000 were reported for the first quarter of 2011, compared to the $173,000 reported in the first quarter of 2010.
The Company reported a gross profit of $139,000 for the first quarter of 2011, compared with a $164,000 gross profit in the first quarter of 2010.
The loss from operations for the first quarter of 2011 was $37,000, compared to a loss of $9,000 reported in the first quarter of 2010. The net loss for the first quarter of 2011 was $42,000, or $0.00 per share, compared to $16,000, or $0.00 per share, in the first quarter of 2010.
"Although sales were down 1% in the quarter, a closer look shows that this was attributed to a decline with one customer that had a short-term high volume requirement in the 1st quarter of last year. If we take out that customer for comparative purposes, our volumes were up 7.3% and revenue was up 9% over the same quarter last year; both figures showing that our relationships with existing, and a number of new customers, remain strong and growing," commented Don Crosbie, Chief Executive Officer of Claimsnet.
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.
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CLAIMSNET.COM INC. AND SUBSIDIARIES SUMMARY OPERATIONS STATEMENT INFORMATION (In thousands except per share data) (unaudited) | |||
Quarter Ended | |||
March 31, | |||
2011 | 2010 | ||
REVENUES | $573 | $578 | |
COST OF REVENUES | $434 | $414 | |
GROSS PROFIT | $139 | $164 | |
SELLING, GENERAL AND ADMINISTRATIVE | $176 | $173 | |
LOSS FROM OPERATIONS | $ (37) | $ (9) | |
INTEREST EXPENSE | $ (5) | $ (7) | |
NET LOSS | $ (42) | $ (16) | |
NET LOSS PER COMMON SHARE - | |||
BASIC | $ (0.00) | $ (0.00) | |
WEIGHTED AVERAGE COMMON | |||
SHARES OUTSTANDING - | |||
BASIC AND DILUTED | 34,875 | 34,875 | |
SOURCE Claimsnet.com inc.
