Claimsnet.com Reports Second Quarter 2006 Results Including a 5% Increase in Revenues
July 24 2006 - 6:01PM
PR Newswire (US)
DALLAS, July 24 /PRNewswire-FirstCall/ -- Claimsnet.com inc.
(OTC:CLAI) (BULLETIN BOARD: CLAI) , a leading provider of
Internet-based business-to- business solutions for the healthcare
industry, today reported its results for the second quarter of
2006, which ended June 30, 2006. For the quarter ended June 30,
2006, Claimsnet reported revenues of $342,000, a 5% increase
compared to the $326,000 reported for the second quarter of 2005.
Cost of revenues for the second quarter of 2006 was $232,000
compared to $203,000 for the second quarter of 2005, a 14%
increase. There were no research and development expenses incurred
during the second quarter of 2006 or the second quarter of 2005.
Selling, general and administrative expenses of $207,000 were
reported for the second quarter of 2006 compared to $208,000
reported for the second quarter of 2005. Claimsnet reported a gross
profit of $110,000 for the second quarter of 2006, compared with a
$123,000 gross profit for the second quarter of 2005. The loss from
operations for the second quarter of 2006 was $(97,000) compared to
$(85,000) reported for the second quarter of 2005. The net loss for
the second quarter of 2006 was $(112,000), or $(.00) per share,
compared to net loss of ($95,000), or $(.00) per share, for the
second quarter of 2005. "We are pleased to report a 5% increase in
our second quarter revenues," commented Don Crosbie, chief
executive officer of Claimsnet. "Our increase in overall costs
during the second quarter of 2006 was due to the addition of new
clearinghouse partners and the addition of Kent McRee to our
management team as president, with primary responsibilities for
sales and marketing. This reflects our renewed efforts in sales and
marketing and is a significant strengthening of the capabilities of
Claimsnet management to bring 'best of breed' solutions to the
healthcare payer industry and to increase the customer base of the
company." 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. [Table to Follow] CLAIMSNET.COM INC. AND
SUBSIDIARIES SUMMARY OPERATIONS STATEMENT INFORMATION (In thousands
except per share data) (unaudited) Quarter Ended June 30, 2006 2005
REVENUES $ 342 $ 326 COST OF REVENUES $ 232 $ 203 GROSS PROFIT $
110 $ 123 RESEARCH AND DEVELOPMENT $ --- $ --- SELLING, GENERAL AND
ADMINISTRATIVE $ 207 $ 208 LOSS FROM OPERATIONS $ (97) $ (85)
INTEREST EXPENSE $ (15) $ (10) NET LOSS $ (112) $ (95) NET LOSS PER
COMMON SHARE - BASIC AND DILUTED $ (0.00) $ (0.00) WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING - BASIC AND DILUTED 25,976 25,751
DATASOURCE: Claimsnet.com inc. CONTACT: Don Crosbie of
Claimsnet.com inc., +1-972-458-1701, ext. 112, or Web site:
http://www.claimsnet.com/
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