"These third quarter results were achieved in a relatively challenging economic environment where many companies are still delaying decisions or putting new contracts on hold," commented Don Crosbie, chief executive officer of Claimsnet. "Based on our pipeline, though, we do see the beginning of a positive change in the environment. At the same time, we have continued to focus on operational efficiencies and cost controls leading to a 54% reduction in the third quarter net loss of the Company. This, along with the continued pursuit of new business remains the focus of our efforts to attain operational profitability as a short-term goal. We are confident we can make good progress there, as we look ahead to the final quarter of fiscal 2009."
For the quarter ended September 30, 2009, Claimsnet reported revenues of $565,000, a 7% increase compared to the $527,000 reported for the third quarter of 2008. Revenues for the nine months ended September 30, 2009 were $1,646,000, a 7% increase compared to the $1,545,000 reported for the nine months of 2008.
Cost of revenues for the third quarter of 2009 was $426,000 compared to $408,000 for the third quarter of 2008, a 4% increase. Cost of revenues for the nine months of 2009 was $1,258,000 compared to $1,218,000 for the nine months of 2008, a 3% increase. Selling, general and administrative expenses of $200,000 were reported for the third quarter of 2009 compared to $245,000 reported for the third quarter of 2008. Selling, general and administrative expenses of $671,000 were reported for the nine months of 2009 compared to $732,000 reported for the nine months of 2008.
Claimsnet reported a gross profit of $139,000 for the third quarter of 2009, compared with a gross profit of $119,000 for the third quarter of 2008. Claimsnet reported a gross profit of $388,000 for the nine months of 2009, compared with a gross profit of $327,000 for the nine months of 2008.
The loss from operations for the third quarter of 2009 was $(61,000) compared to $(126,000) reported for the third quarter of 2008. The loss from operations for the nine months of 2009 was $(283,000) compared to $(405,000) reported for the nine months of 2008. The net loss for the third quarter of 2009 was $(69,000), or $(0.00) per share, compared to net loss of ($151,000), or $(0.01) per share, for the third quarter of 2008. The net loss for the nine months of 2009 was $(313,000), or $(0.01) per share, compared to net loss of ($484,000), or $(0.02) per share, for the nine months of 2008.
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.
Safe Harbor Statement Under the Private Securities Litigation Act 1995 - 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, and continued use of the internet. 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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SOURCE Claimsnet.com inc.
