DALLAS May 8, 2012 Claimsnet.com inc. (OTCBB: CLAI.PK), a leading provider of Internet-based business-to-business solutions for the healthcare industry, today reported its results for the first quarter of fiscal 2012, which ended March 31, 2012.
For the quarter ended March 31, 2012, the Company reported revenues of $637,000, an 11% increase from the $573,000 reported for the first quarter of 2011.
Expenses overall, comprised of cost of revenues and selling, general and administrative expenses increased 12% compared with the first quarter of 2011. Cost of revenues for the first quarter of 2012 was $500,000 compared to $434,000 in the first quarter of 2011, an increase of 15%. Selling, general and administrative expenses of $185,000 were reported for the first quarter of 2012, representing a 5% increase from the $176,000 reported in the first quarter of 2011.
The Company reported a gross profit of $137,000 for the first quarter of 2012, compared with a $139,000 gross profit in the first quarter of 2011.
The loss from operations for the first quarter of 2012 was $48,000, compared to a loss of $37,000 reported in the first quarter of 2011. The net loss for the first quarter of 2012 was $54,000, or $0.00 per share, compared to $42,000, or $0.00 per share, in the first quarter of 2011.
We were pleased with the 11% increase in our sales compared to last year. Our customer relationships remain strong, and the services we provide them are beneficial to their cost of operations. While expenses increased compared to last year, some of this was associated with the conversion of our systems to the new 5010 standard as mandated by Centers for Medicare and Medicaid Services. This applied to all entities associated with healthcare transactions, including clearinghouses, claims submitters and payer customers. At the same time, we continue to look for strategic alternatives to increase both growth and product offering, commented Don Crosbie, Chief Executive Officer of Claimsnet.
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.
Forward-Looking Statements - 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, continued use of the Internet, achieving the anticipated benefits of capital expenditures, and achieving anticipated expense reductions. 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 March 31, --------------------------- 2012 2011 ---------- ---------- REVENUES $ 637 $ 573 COST OF REVENUES $ 500 $ 434 GROSS PROFIT $ 137 $ 139 SELLING, GENERAL AND ADMINISTRATIVE $ 185 $ 176 LOSS FROM OPERATIONS $ (48) $ (37) INTEREST EXPENSE $ (6) $ (5) NET LOSS $ (54) $ (42) NET LOSS PER COMMON SHARE BASIC $ (0.00) $ (0.00) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING BASIC AND DILUTED 34,875 34,875