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Third quarter 2007 revenues were $56.3 million compared to $60.6 millionin the corresponding period of 2006. The Company recorded a net loss for thethird quarter of 2007 of $10.6 million, or $(0.16) per share, compared to anet loss of $42.1 million or $(0.63) per share in the prior year period. Thenet loss for the third quarter of 2007 includes a non-cash impairment chargefor goodwill and intangibles of $6.3 million and $1.6 million of restructuringand other charges. The net loss for the third quarter of 2006 included a non-cash charge of $31.9 million related to an increase in the valuation allowancefor deferred tax assets and $6.6 million of restructuring and other charges.
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For the first nine months of 2007, total revenues were $179.4 millioncompared to $193.9 million in the comparable period of 2006. The Company'snet loss for the first nine months of 2007 totaled $14.2 million, or $(0.21)per share, compared to a net loss of $44.1 million, or $(0.66) per share inthe comparable period of 2006. The 2007 net loss includes a non-cashimpairment charge for goodwill and intangibles of $6.3 million and $2.9million of restructuring and other charges. The net loss for the first ninemonths of 2006 included a non-cash charge of $31.9 million related to anincrease in the valuation allowance for deferred tax assets and $8.3 millionrelated to restructuring and other charges.
Third quarter 2007 Results by Division
Health Information Division (HID)
The Company's Health Information Division reported revenues of $49.4million for the three months ended September 30, 2007 compared to $52.9million in the prior year period.
Claims Evaluation Division (CED)
The CED reported third quarter revenues of $6.8 million, a decrease of 11%compared to $7.7 million in the third quarter of 2006. The decrease wasprimarily the result of a continued contraction in the number of independentmedical exams and peer reviews ordered by our customers.
James Calver, Chief Executive Officer of Hooper Holmes, commented, "Oursis a seasonal business and the third quarter is traditionally the mostchallenging. However, we remain confident of improved performance in thefourth quarter and an expected return to profitability in the first quarter of2008. We continue to focus on generating new sources of revenue in growingmarkets such as Health and Wellness, growing market share, sustainingincreases in pricing by improving service levels and improving ourproductivity through careful investment in our processes, people and newtechnology. We have successfully ended a multi-year decline in market share atPortamedic and developed new, premium products to meet our customers' changingneeds. In our efforts to improve our service offerings, we recently launcheda new service, Mature Assessment, the only integrated lab and exam assessmentdesigned to meet the full range of underwriters' need for older applicants."
The Company will host a conference call, on November 9, 2007 at 11:00 a.m.Eastern Time to discuss third quarter 2007 financial results.
To participate in the conference call, please dial (888) 790-3758 or(210) 839-8398, passcode: Hooper Holmes. A live web cast will be hosted onthe Company's web site located at www.hooperholmes.com. Listeners may alsoaccess a telephone replay of the conference call, available through November23, 2007, by dialing (866) 448-2547.
About Hooper Holmes
Hooper Holmes is the leader in collecting personal health data andtransforming it into useful information, enabling customers to take actionsthat manage or reduce their risks and expenses. As the leading provider ofrisk assessment services f
