AMICAS Reports Financial Results for the Third Quarter Ended September 30, 2008
Revenue: Total revenues for the third quarter of 2008 were $12.3 million,compared to $13.3 million for the third quarter of 2007.
Operating Loss: Operating loss for the third quarter of 2008 was $1.2million, compared to an operating loss of $521,000 for the third quarter of2007.
Net Loss/Income: The Company's net loss for the third quarter of 2008 was$809,000, or $(0.02) per share, compared to net income of $374,000, or $0.01per share, for the third quarter of 2007.
In the third quarter of 2008, both operating loss and net loss included$438,000 of non-cash stock-based compensation expense and $835,000 ofdepreciation and amortization. In the third quarter of 2007, both operatingloss and net income included $514,000 of non-cash stock-based compensationexpense and $789,000 of depreciation and amortization.
Pro-forma EBITDA: Pro-forma EBITDA, a non-GAAP financial measure, was$87,000 in the third quarter of 2008 as compared to $782,000 in the thirdquarter of 2007.
Pro-forma EBITDA refers to net income, adjusted for amortization,depreciation, interest, taxes, and stock compensation expense. Areconciliation of net loss/income as determined under GAAP to pro-forma EBITDAis included below. Management believes that its pro-forma EBITDA measurement,when viewed in addition to the Company's reported GAAP results, provides anadditional meaningful measure of operating performance, enabling investors tomore thoroughly evaluate current performance in comparison to pastperformance. This information will necessarily differ from comparableinformation that may be provided by other companies and should not beconsidered in isolation or as an alternative to the Company's operating andother financial information determined under GAAP.
Cash and Cash Flow: AMICAS ended the third quarter of 2008 with a cash,cash equivalents, and marketable securities balance of $54.0 million, no longterm debt, and working capital of $47.0 million. For the third quarter endedSeptember 30, 2008, net cash provided by operations was $1.9 million.
Stock Repurchase: The Company repurchased approximately 985,000 shares ofits common stock for approximately $2.7 million in the third quarter of 2008.
Fiscal Year-to-Date Financial Highlights
Revenue: Total revenues for the first nine months of 2008 were $38.7million, compared to $38.2 million for the first nine months of 2007.
Operating Loss: Operating loss for the first nine months of 2008 was $3.0million, compared to an operating loss of $2.7 million for the first ninemonths of 2007.
Net Loss/Income: The Company's net loss for the first nine months of 2008was $1.4 million, or $(0.03) per share, compared to net income of $40,000, or$0.00 per share, for the first nine months of 2007.
For the first nine months of 2008, both operating loss and net lossincluded $1.1 million of non-cash stock-based compensation expense and $2.5million of depreciation and amortization. For the first nine months of 2007,both operating loss and net income included $1.5 million of non-cash stock-based compensation expense, and $2.3 million of depreciation and amortization.
Pro-forma EBITDA: For the first nine months of 2008, pro-forma EBITDA was$552,000 as compared to $1.2 million for the same period in 2007.
Cash Flow: For the first nine months of 2008, net cash provided byoperations was $3.2 million as compared to $5.6 million for the same period in2007.
Stock Repurchase: In the fourth quarter of 2007, the Board of Directorsdirected the Company to initiate a $25 million stock repurchase plan. TheCompany repurchased approximately 9.6 million shares for approximately $25million in total under this program. During 2006, under a previouslyauthorized stock repurchase plan, the Company repurchased 4.5 million sharesof its common stock for approximately $15 million. In aggregate, the Companyhas repurchased a total of 14.1 million shares for approximately $40 millionsince 2006. Both stock repurchase plans are now complete.
Dr. Stephen Kahane, president, chief executive officer, and chairman ofAMICAS, said, "We had our best third quarter bookings in the past severalyears. Revenue growth was short of our plan, mainly due to our signing moremulti-year customer relationships. We expect this trend to continue and, whilewe reiterate our previously provided guidance related to bookings, we arecommunicating our adjusted guidance below."
Dr. Kahane went on to say, "Once again, we maintained positive cash flowfrom operations while building our business through significant investments inboth innovative research and development programs and important distributioninitiatives. The third quarter resulted in several large radiology groupsmaking the decision to use AMICAS products as the basis for their automationinfrastructure going forward. Over the past year, AMICAS has been able to signseveral very sophisticated and informed radiology groups and imaging serviceproviders. We will continue to work hard to help these new partners succeedand to make sure others follow in their footsteps. Our top flight solutions --which include the latest in teleradiology technology, PACS, RIS, revenue cyclemanagement, business intelligence, and zero client referring physician tools-- continue to be viewed as extremely easy to install, deploy, and support.These attributes help reduce the total cost of ownership of AMICAS solutions,which can help result in very impressive returns on investment for ourcustomers. As we have mentioned before, it is noteworthy that, despiteobstacles such as DRA and other reimbursement-related pressures such asincreasing requirements related to pre-authorizations for studies, thesegroups made the decision to take their automation support to the next levelwith industry leading offerings from AMICAS."
Dr. Kahane continued, "The stock buyback program we initiated in thefourth quarter of 2007 was completed in the third quarter of 2008. AMICAS hasrepurchased the full $25 million authorized under the program put in place inDecember of last year. Over the past two years, AMICAS has bought backapproximately $40 million of its common stock. AMICAS has no debt and has avery strong recurring revenue base from an excellent group of customerpartners."
Dr. Kahane added, "We remain committed to continuing to build a strongcompany focused on providing excellent innovative image and informationmanagement solutions for radiology practices, hospitals, and otherimaging-related businesses in healthcare. To continue to get to know usbetter, we welcome you to our booth at the upcoming RSNA 2008 conference. Moreinformation can be found online at http://www.amicas.com/rsna."
AMICAS continues to expect 2008 bookings growth of 10 to 20 percent.Bookings are defined as contractual commitments from customers for licenses,services, hardware, and maintenance/support.
AMICAS now expects 2008 revenues to be between $50.5 million and $51.5million and pro-forma EBITDA between $(0.5) million and $0.2 million. This isconsistent with a net loss of between $3.5 million and $2.8 million or $(0.09)and $(0.07) per share.
Company Announces Authorization of New Stock Repurchase Plan
AMICAS' Board of Directors has authorized the repurchase of up to$5 million of the company's common stock from time to time in open market orthrough negotiated or block transactions in accordance with applicable SECguidelines and regulations. Additionally, AMICAS may in the future makerepurchases pursuant to trading plans meeting the requirements of Rule 10b5-1of the Securities Exchange Act of 1934. The timing of repurchases, if any, andthe number of shares repurchased will depend upon business and marketconditions.
Commenting on the share repurchase authorization, Kevin Burns, chieffinancial officer of AMICAS, said, "The current disruption in the equitymarkets provides an attractive environment for opportunistic purchases of ourcommon stock. In addition, we are continuing to identify and review otherstrategic uses of our cash to invest in the growth of our business."
AMICAS will host a conference call on Tuesday, November 4, at 8:30 a.m.Eastern Time to discuss the Company's 2008 third fiscal quarter results.Investors and other interested parties may dial in to the call using the tollfree number 1-800-862-9098. (conference ID: 7AMICAS). The conference call willalso be available via Webcast at http://www.amicas.com. Following theconclusion of the call, a replay will be available at 1-800-388-9074 or1-402-220-1117 until December 3, 2008.
AMICAS, AMICAS PACS, AMICAS RIS, AMICAS Financials, AMICAS Documents,AMICAS Dashboards, AMICAS Watch, AMICAS Reach, AMICAS RadStream, RealTimeWorklist, Halo Viewer, and Cashfinder Worklist are trademarks, service marksor registered trademarks and service marks of AMICAS, Inc. All othertrademarks and company names mentioned are the property of their respectiveowners.
About AMICAS, Inc.
AMICAS, Inc. (http://www.amicas.com) is a leader in radiology and medicalimage and information management solutions. The AMICAS One Suite(TM) ofproducts provides a complete, end-to-end solution for imaging centers,ambulatory care facilities, and radiology practices. Acute care and hospitalclients are provided with a fully integrated, hospital informationsystem-independent PACS that features advanced enterprise workflow support andscalable design. Complementing the AMICAS solution suite is AMICASProfessional Services(TM), a set of client-centered professional andconsulting services that assist our customers with a well-planned transitionto a digital enterprise.
Safe Harbor Statement
Except for the historical information herein, the matters discussed inthis release include forward-looking statements. In particular, theforward-looking statements contained in this release include statements aboutour anticipated financial and operating results for the remainder of fiscalyear 2008. When used in this press release, the words: believes, intends,plans, anticipates, expects, estimates, and similar expressions are intendedto identify forward-looking statements. Such forward-looking statements aresubject to a number of risks, assumptions, and uncertainties that could causeactual results to differ materially which include, but are not limited to, thefollowing: a significant portion of the Company's quarterly sales areconcluded in the last month of the fiscal quarter; the length of sales anddelivery cycles; the deferral and/or realization of deferred software licenseand system revenues according to contract terms; the timing, cost, and successor failure of current and new product and service introductions and productupgrade releases; potential patent infringement claims against AMICAS and therelated defense costs; the ability of AMICAS to comply with all governmentlaws, rules, and regulations; and other risks affecting AMICAS' businessesgenerally and as set forth in AMICAS' most recent filings with the Securitiesand Exchange Commission, including the section entitled "Risk Factors" of ourmost recent annual report on Form 10-K, and subsequent quarterly reports onForm 10-Q. All forward-looking statements in this release are qualified bythese cautionary statements and are made only as of the date of this release.AMICAS is under no obligation (and expressly disclaims any such obligation) toupdate or alter its forward-looking statements whether as a result of newinformation, future events, or otherwise. The financial statements andinformation as of, and for the period ended, September 30, 2008, contained inthis press release are subject to review by the Company's independentregistered public accounting firm.
(a) -- includes $37,000, $29,000, $107,000, and $77,000 in stock-basedcompensation expense for the three and nine months ended September 30, 2008,and September 30, 2007, respectively.
(b) -- includes $0.3 million, $0.4 million, $0.6 million, and $1.3 millionin stock-based compensation expense for the three and nine months endedSeptember 30, 2008, and September 30, 2007, respectively.
( c ) -- includes $107,000, $67,000, $320,000, and $200,000 in stock-basedcompensation expense for the three and nine months ended September 30, 2008,and September 30, 2007, respectively.(Logo: http://www.newscom.com/cgi-bin/prnh/20060202/AMICASLOGO ) Q3 Financial Highlights
SOURCE AMICAS, Inc.
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