Claimsnet.com Reports Fiscal Year 2011 Results

DALLAS, Feb. 23, 2012 /PRNewswire/ -- Claimsnet.com inc. (OTCBB: CLAI.OB), a leading provider of business-to-business Electronic Data Interchange (EDI) solutions for the healthcare industry, today reported its results for fiscal year 2011 and fourth quarter of 2011, which ended December 31, 2011.

For the year ended December 31, 2011, the Company reported revenues of $2,346,000, a 1% increase from the $2,326,000 reported for fiscal 2010.

Cost of revenues for the 2011 fiscal year were $1,748,000 compared to $1,694,000 for the 2010 fiscal year, a 3% increase. Operating expenses of $702,000 were reported for 2011 compared to the $889,000 reported in fiscal 2010, a decrease of 21%.

The Company reported a gross profit of $598,000 for fiscal year 2011, compared with a gross profit of $632,000 for fiscal year 2010, representing a 5% decrease. The loss from operations for fiscal 2011 was $104,000 compared to $257,000 reported in fiscal 2010, representing a 60% decrease. The net loss for fiscal year 2011 was $125,000, or $0.00 per share, compared to $287,000, or $0.01 per share, in the prior year, representing a 56% decrease primarily attributed to a one-time expense related to the non-refundable advisory fee paid to Blackhawk Partners and impairment of $104,000 of previously capitalized software development costs in 2010.

For the three months ended December 31, 2011, the Company reported revenues of $605,000 compared to revenues of $585,000 reported for the three months ended December 31, 2010, an increase of 3%.

Cost of revenues were $470,000 for the fourth quarter of 2011 compared to $428,000 for the fourth quarter of 2010, an increase of 10%. Operating expenses of $181,000 for the fourth quarter of 2011 decreased 39% from the $296,000 reported for the fourth quarter of 2010. The decrease was primarily attributed to the advisory fee and impairment of software development costs discussed above.

The Company reported a quarterly gross profit in the fourth quarter of 2011 totaling $135,000 compared with a gross profit of $157,000 in the fourth quarter of 2010, a decrease of 14%. The fourth quarter loss from operations was $46,000 in the fourth quarter of 2011 compared to the loss from operations of $139,000 reported in the fourth quarter of 2010, a decrease of 67%. The net loss for the fourth quarter of 2011 was $51,000, or $0.00 per share, as compared with a net loss of $147,000, or $0.01 per share, in the same quarter of 2010, a decrease of 65%.

"Our financial results for fiscal year 2011 reflect the stability of our customer relationships.  We remain focused on customer development and efficiency of operations," commented Don Crosbie, chief executive officer of Claimsnet. "In addition, in the 4th quarter 2011 and going into the 1st quarter of 2012, substantial effort and some extra expense has been incurred to comply with the HIPAA 5010 health claim format mandated by regulations promulgated by the Centers for Medicare & Medicaid Services (CMS) ".

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 and on the information set forth in this release may be found at the Company's web site at http://www.claimsnet.com, as well as at the SEC's website at www.sec.gov.

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, risks related to our recent acquisition of substantially all of the assets of Acceptius, Inc., maintaining access to external sources of capital, regulatory actions, success of marketing strategies, actions of Claimsnet's competitors, dependence on business partners and distribution channels, and continued use of the Internet. Further information on Claimsnet's risk factors is contained in Claimsnet's quarterly, annual, and other periodic reports as filed with the Securities and Exchange Commission.

SOURCE Claimsnet.com inc.