Claimsnet.com Reports Second Quarter 2008 Results
For the quarter ended June 30, 2008, Claimsnet reported revenues of$529,000, a 29% increase compared to the $411,000 reported for the secondquarter of 2007.
Cost of revenues for the second quarter of 2008 was $422,000 compared to$272,000 for the second quarter of 2007, a 55% increase. Selling, general andadministrative expenses of $281,000 were reported for the second quarter of2008 compared to $201,000 reported for the second quarter of 2007.
Claimsnet reported a gross profit of $107,000 for the second quarter of2008, compared with a gross profit of $139,000 for the second quarter of 2007.
The loss from operations for the second quarter of 2008 was $(174,000)compared to $(62,000) reported for the second quarter of 2007. The net lossfor the second quarter of 2008 was $(200,000), or $(0.01) per share, comparedto net loss of ($87,000), or $(0.00) per share, for the second quarter of2007.
"We are pleased to report a 29% increase in our second quarter revenues,"commented Don Crosbie, chief executive officer of Claimsnet. "The increase inoverall costs during the second quarter of 2008 was due to the addition of newclearinghouse partners as well as customer support personnel, some of whichwas associated with the implementation of National Provider Identification(NPI) as mandated by the HIPAA regulations. The majority of our customers aresubstantially complete with this effort now. In addition, we added a new VicePresident of Sales and a Provider focused sales person at the beginning of thesecond quarter. This renewed sales effort is building a good pipeline ofopportunities and we anticipate that this investment in sales growth willpositively impact the financial results going forward.
"We have also signed several new payer contracts (as previously announced)over the last several months and implementation of these contracts bringsfurther revenue opportunities going forward."
Claimsnet.com inc. is a leading provider of Internet-based claimprocessing solutions for the healthcare payer industry, including distinctive,advanced ASP technology. Headquartered in Dallas, Texas, Claimsnet offerssystems that are distinguished by ease of use, customer care, security andmeasurable cost advantages. More information on Claimsnet can be found at thecompany's web site at http://www.claimsnet.com.
Safe Harbor Statement Under the Private Securities Litigation Act 1995 --With the exception of historical information, the matters discussed in thispress release are forward looking statements that involve a number of risksand uncertainties. The actual future results of the company could differsignificantly from those statements. Factors that could cause or contribute tosuch differences include, but are not limited to, maintaining access toexternal sources of capital, regulatory actions, success of marketingstrategies, actions of the company's competitors, dependence on suppliers anddistribution channels, and continued use of the internet. Further informationon the company's risk factors is contained in the company's quarterly, annual,and other periodic reports as filed with the Securities and ExchangeCommission.[Table to Follow] CLAIMSNET.COM INC. AND SUBSIDIARIES SUMMARY OPERATIONS STATEMENT INFORMATION (In thousands except per share data) (unaudited) Quarter Ended June 30, ---------------------
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