Revenues increase 15% from Third Quarter Fiscal 2004 GREAT RIVER,
N.Y., Nov. 15 /PRNewswire-FirstCall/ -- Netsmart Technologies, Inc.
(NASDAQ:NTST), a leading supplier of enterprise-wide software
solutions for health and human services providers, today reported
results for the third quarter ended September 30, 2005. Revenue for
the quarter ended September 30, 2005 was a record $8,517,000 as
compared to $7,421,000 for the quarter ended September 30, 2004,
representing an increase of 15%. Recurring revenue for the quarter
was $3,718,000, an increase of 20% from the $3,086,000 for the
comparable quarter last year. The firm order backlog at September
30, 2005, was $28.6 million with a recurring revenue component of
$16.5 million as compared to a firm order backlog of $26.0 million
at September 30, 2004, which included a recurring revenue component
of $13.8 million. Net income for the quarter ended September 30,
2005 was $379,000 or $0.07 per share (basic and diluted) as
compared to $633,000 or $0.12 per share basic and $.11 per share
diluted for the same period last year. Revenue for the nine months
ended September 30, 2005, was $23,705,000 as compared to
$21,433,000 for the nine months ended September 30, 2004,
representing an increase of 11%. Net income for the nine months
ended September 30, 2005, was $1,191,000, or $.22 per share basic
and $.21 per share diluted, as compared to $1,451,000, or $.27 per
share basic and $.26 per share diluted for the same period last
year. Earnings before interest, taxes, depreciation and
amortization, or "EBITDA", were $1,151,000 for the quarter ended
September 30, 2005 as compared to $1,237,000 for the comparable
quarter in 2004. James Conway, CEO of Netsmart Technologies, Inc.
stated, "We are very pleased to report our 29th consecutive quarter
of profitability as well as a record high order backlog. We are
particularly pleased to have achieved these results notwithstanding
our management team's focus on our acquisition of CMHC Systems,
Inc., which was consummated on September 28, 2005. Since we
completed the acquisition at the end of the quarter, there was no
financial impact on our results. Our recurring revenue has been
running at the rate of approximately $14.8 million annually and,
when added to the present annual recurring revenue generated by
CMHC, we expect our combined annual recurring revenue to increase
to approximately $28 million, nearly equal to our total 2004 annual
revenue. Our number one objective for the balance of 2005 is to
integrate CMHC's operations into our Company to ensure that we have
the best possible opportunities in 2006. We hope to be able to
capitalize on those opportunities and achieve improved financial
results." Reconciliation of Earnings before Interest, Taxes,
Depreciation and Amortization ("EBITDA") to Net Income. Calculated
for any period as the sum of net income, plus net interest expense,
income tax expense, and depreciation and amortization expense. We
consider EBITDA to be a widely accepted financial indicator of a
company's ability to service debt, fund capital expenditures and
expand its business. EBITDA is not calculated in the same way by
all companies and therefore may not be comparable to similarly
titled measures reported by other companies. EBITDA is not a
measure in accordance with accounting principles generally accepted
in the United States. EBITDA should not be considered as an
alternative to net income, as an indicator of operating performance
or as an alternative to cash flow as a measure of liquidity. The
funds depicted by this measure may not be available for
management's discretionary use due to legal or functional
requirements, debt service, or other commitments and uncertainties.
Three Months Ended Nine Months Ended September, 30 September 30,
2005 2004 2005 2004 EBITDA $ 1,151,000 $ 1,237,000 $ 3,138,000 $
3,219,000 Less: Depreciation and Amortization (566,000) (412,000)
(1,419,000) (1,194,000) Interest income (expense), net 86,000 2,000
194,000 (11,000) Income taxes (292,000) (194,000) (722,000)
(563,000) Net Income $379,000 $633,000 $ 1,191,000 $ 1,451,000
About Netsmart Technologies, Inc. Netsmart Technologies, Inc.,
based in Great River, N.Y., is an established, leading supplier of
enterprise-wide software solutions for health and human services
providers, now with over 1250 clients, including 30 systems with
state agencies. Netsmart's clients include health and human
services organizations, public health agencies, mental health and
substance abuse clinics, psychiatric hospitals, and managed care
organizations. Netsmart's products are full-featured information
systems that operate on a variety of operating systems, hardware
platforms, and mobile devices, and offer unlimited scalability.
Statement on Behalf of Netsmart Technologies, Inc. Statements in
this press release may be "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Words such as "anticipate", "believe", "estimate", "expect",
"intend" and similar expressions, as they relate to the company or
its management, identify forward-looking statements. These
statements are based on current expectations, estimates and
projections about the company's business based, in part, on
assumptions made by management. These statements are not guarantees
of future performance and involve risks, uncertainties and
assumptions that are difficult to predict. Therefore, actual
outcomes and results may, and probably will, differ materially from
what is expressed or forecasted in such forward-looking statements
due to numerous factors, including those described above and those
risks discussed from time to time in Netsmart's filings with the
Securities and Exchange Commission. In addition, such statements
could be affected by risks and uncertainties related to product
demand, market and customer acceptance, competition, pricing and
development difficulties, as well as general industry and market
conditions and growth rates, and general economic conditions. Any
forward-looking statements speak only as of the date on which they
are made, and the company does not undertake any obligation to
update any forward-looking statement to reflect events or
circumstances after the date of this release. Information on
Netsmart's or Creative's website does not constitute a part of this
release. NETSMART TECHNOLOGIES, INC. Comparative Operating Results
for the Three and Nine Months Ended September 30, Three Months Nine
Months 2005 2004 2005 2004 Revenue $8,517,000 $7,421,000
$23,705,000 $21,433,000 Net Income $379,000 $633,000 $ 1,191,000 $
1,451,000 Net Income Per Share Basic $.07 $.12 $.22 $.27 Weighted
Average Shares of Common Stock Outstanding Basic 5,538,000
5,339,000 5,410,000 5,330,000 Net Income Per Share Diluted $.07
$.11 $.21 $.26 Weighted Average Shares of Common Stock and Common
Stock Equivalents Outstanding Diluted 5,798,000 5,548,000 5,656,000
5,545,000 DATASOURCE: Netsmart Technologies, Inc. CONTACT: Anthony
F. Grisanti, CFO of Netsmart Technologies, Inc., 1-800-451-7503, ;
or Stuart Fine of Carpe DM, Inc., +1-908-490-0075, , for Netsmart
Technologies Web site: http://www.netsmartech.com/
Copyright
Netsmart (NASDAQ:NTST)
Historical Stock Chart
From Jun 2024 to Jul 2024
Netsmart (NASDAQ:NTST)
Historical Stock Chart
From Jul 2023 to Jul 2024