PR Newswire: news distribution, targeting and monitoring
Oct 30 2012

DALLAS, Oct. 30, 2012 /PRNewswire/ -- Claimsnet.com inc. (OTCBB: CLAI.OB), a leading provider of Internet-based claims processing solutions for the healthcare industry, today reported its results for the third quarter of 2012, which ended September 30, 2012.

For the quarter ended September 30, 2012, Claimsnet reported revenues of $599,000 compared to the $582,000 reported for the third quarter of 2011, a 3% increase. Revenues for the nine months ended September 30, 2012 were $1,892,000 a 9% increase compared to the $1,740,000 reported for the nine months of 2011.

Cost of revenues for the third quarter of 2012 was $462,000 compared to $430,000 for the third quarter of 2011, a 7% increase. Cost of revenues for the nine months of 2012 was $1,456,000 compared to $1,279,000 for the nine months of 2011, a 14% increase. Selling, general and administrative expenses of $192,000 were reported for the third quarter of 2012 compared to $179,000 reported for the third quarter of 2011, a 7% increase. Selling, general and administrative expenses of $572,000 were reported for the nine months of 2012 compared to $521,000 reported for the nine months of 2011, a 10% increase. The increase in expenses is primarily attributable to personnel and associated benefits needed to comply with the HIPAA 5010 health claim format mandated by regulations promulgated by the Centers for Medicare & Medicaid Services (CMS).

Claimsnet reported a gross profit of $137,000 for the third quarter of 2012, compared with a gross profit of $152,000 for the third quarter of 2011. Claimsnet reported a gross profit of $436,000 for the nine months of 2012, compared with a gross profit of $461,000 for the nine months of 2011.       

The loss from operations for the third quarter of 2012 was $(55,000), compared to $(27,000) reported for the third quarter of 2011. The loss from operations for the nine months of 2012 was $(136,000) compared to $(60,000) reported for the nine months of 2011. The net loss for the third quarter of 2012 was $(61,000), or $(0.00) per share, compared to net loss of ($32,000), or $(0.00) per share, for the third quarter of 2011. The net loss for the nine months of 2012 was $(153,000), or $(0.00) per share, compared to net loss of ($74,000), or $(0.00) per share, for the nine months of 2011.

"The results for the third quarter reflect a continued steadiness in our business, and the long term relationships we have with our payer customers where we continue to provide outstanding value that helps them reduce their administrative costs.  Top line growth was 3%, however costs have risen as we added staff to manage the transition to the 5010 HIPAA standard required by CMS," commented Don Crosbie, chief executive officer of Claimsnet. "We remain committed to looking at opportunities in the market place, including M & A transactions in the BPO (Business Process Outsourcing) space."

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)


 (unaudited)


Quarter Ended


Nine Months Ended


September 30,


September 30,














2012


2011


2012


2011

























REVENUES

$

599


$

582


$

1,892


$

1,740













COST OF REVENUES

$

462


$

430


$

1,456


$

1,279













GROSS PROFIT

$

137


$

152


$

436


$

461













SELLING, GENERAL AND ADMINISTRATIVE

$

192


$

179


$

572


$

521













LOSS FROM OPERATIONS

$

(55)


$

(27)


$

(136)


$

(60)













INTEREST EXPENSE – RELATED PARTIES

$

(6)


$

(5)


$

(17)


$

(14)













NET LOSS

$

(61)


$

(32)


$

(153)


$

(74)













NET LOSS PER COMMON SHARE –












BASIC AND DILUTED

$

(0.00)


$

(0.00)


$

(0.00)


$

(0.00)













WEIGHTED AVERAGE COMMON












SHARES OUTSTANDING – BASIC AND DILUTED


35,092



34,875



34,948



34,875

 

SOURCE Claimsnet.com inc.



RELATED LINKS
http://www.claimsnet.com

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