Claimsnet.com Reports Fiscal Year 2006 Results
March 08 2007 - 4:26PM
PR Newswire (US)
Including a 16% Growth in Revenue for the Year and a 27% Growth in
Revenue for the 4th Quarter DALLAS, March 8 /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 fiscal year
2006 and 4th quarter 2006, which ended December 31, 2006. For the
year ended December 31, 2006, the Company reported revenues of
$1,464,000, a 16% increase from the $1,266,000 reported for fiscal
2005. Cost of revenues were $944,000 compared to $778,000, a 21%
increase. Selling, general and administrative expenses of $844,000
were reported for 2006, a 17% increase over the $723,000 reported
in fiscal 2005. The Company reported a gross profit of $520,000 for
the fiscal year of 2006 compared with a gross profit in fiscal year
2005 of $488,000, representing a 7% increase. The loss from
operations for fiscal 2006 was $324,000 compared to $235,000
reported in fiscal 2005. The net loss for fiscal year 2006 was
$389,000, or $.01 per share, compared to $279,000, or $.01 per
share, in the prior year. For the three months ended December 31,
2006, the Company reported revenues of $410,000, a 27% increase
from the revenues of $323,000 reported for the fourth quarter of
fiscal year 2005. Cost of revenues increased 30% to $254,000 in
2006 from $195,000 last year. Selling, general and administrative
expenses of $242,000 this year increased from the $160,000 reported
for the fourth quarter of 2005. The Company reported its fourteenth
consecutive quarterly gross profit in the fourth quarter of 2006
totaling $156,000, compared with a gross profit of $128,000 in the
fourth quarter of 2005. The fourth quarter loss from operations was
$86,000 compared to the loss of $32,000 reported in the fourth
quarter last year. The net loss for the quarter was $107,000, or
$.00 per share, as compared with a net loss of $44,000, or $.00 per
share, in the same quarter last year. "Our financial results for
fiscal year 2006 and the fourth quarter of fiscal year 2006 reflect
the focus of the Company on revenue growth. While we are not fully
satisfied with the results of those efforts, percentage sales
growth in the fourth quarter improved over previous quarters and we
remain fully focused on this strategy of revenue and margin growth
for the Company with a goal of reaching profitability in fiscal
year 2007. Additionally, a portion of the growth in expenses for
the fourth quarter was associated with the set up of new hardware
and software in our ASP data center operations, which will allow
for continued growth in transaction volumes going forward."
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,
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) Year Ended December 31, 2006 2005 REVENUES
$1,464 $1,266 COST OF REVENUES $944 $778 GROSS PROFIT (LOSS) $520
$488 SELLING, GENERAL AND ADMINISTRATIVE $844 $723 LOSS FROM
OPERATIONS $(324) $(235) OTHER INCOME (EXPENSE) $(65) $(44) NET
LOSS $(389) $(279) NET LOSS PER COMMON SHARE -- BASIC AND DILUTED
$(0.01) $(0.01) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -- BASIC
AND DILUTED 25,983 25,812 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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