Claimsnet.com Reports Second Quarter 2011 Results

Aug 09, 2011, 13:11 ET from Claimsnet.com inc.

DALLAS, Aug. 9, 2011 /PRNewswire/ -- Claimsnet.com inc. (OTCBB: CLAI), a leading provider of Internet-based claims processing solutions for the healthcare industry, today reported its results for the second quarter of 2011, which ended June 30, 2011.

For the quarter ended June 30, 2011, Claimsnet reported revenues of $586,000, a 2% decrease compared to the $596,000 reported for the second quarter of 2010.  Revenues for the six months ended June 30, 2011 were $1,158,000, a 1% decrease compared to the $1,175,000 reported for the six months of 2010.

Cost of revenues for the second quarter of 2011 was $415,000 compared to $434,000 for the second quarter of 2010, a 4% decrease. Cost of revenues for the six months of 2011 was $849,000 compared to $848,000 for the six months of 2010.  Selling, general and administrative expenses of $166,000 were reported for the second quarter of 2011 compared to $186,000 reported for the second quarter of 2010, an 11% decrease. Selling, general and administrative expenses of $342,000 were reported for the six months of 2011 compared to $360,000 reported for the six months of 2010, a 5% decrease.

Claimsnet reported a gross profit of $171,000 for the second quarter of 2011, compared with a gross profit of $162,000 for the second quarter of 2010, a 6% increase. Claimsnet reported a gross profit of $309,000 for the six months of 2011, compared with a gross profit of $327,000 for the six months of 2010, a 6% decrease.      

The income from operations for the second quarter of 2011 was $5,000 compared to loss of $(24,000) reported for the second quarter of 2010. The loss from operations for the six months of 2011 was $33,000 compared to $33,000 reported for the six months of 2010. The net income for the second quarter of 2011 was $0, or $0.00 per share, compared to net loss of $31,000, or $0.00 per share, for the second quarter of 2010. The net loss for the six months of 2011 was $42,000, or $0.00 per share, compared to net loss of $47,000, or $0.00 per share, for the six months of 2010.

"This was a good quarter from an operational standpoint," commented Don Crosbie, Chief Executive Officer of Claimsnet. "Although revenue was 2% lower for the first half of 2011, this was attributed to one existing customer that had a short-term high volume requirement in the first half of 2010, but who then settled into a more normal volume level. It is gratifying to reach a breakeven point on a quarterly basis for the current quarter. We do, however, expect additional operating expenses in the second half of 2011 as we prepare for the migration to the 5010 HIPAA transaction standard as mandated by the Federal government required to be effective January 1, 2012. This creates a substantial amount of extra effort, but is necessary to maintain compliance and status as a medical clearing house company, thus supporting our competitiveness and good standing in a developing market environment into the future."

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

Six Months Ended


June 30,

June 30,


-----------------------------

---------------------------


2011

2010

2011

2010


-----------

----------

-----------

----------










REVENUES

$

586

$

596

$

1,158

$

1,175










COST OF REVENUES

$

415

$

434

$

849

$

848










GROSS PROFIT

$

171

$

162

$

309

$

327










SELLING, GENERAL AND ADMINISTRATIVE

$

166

$

186

$

342

$

360










INCOME (LOSS) FROM OPERATIONS

$

5

$

(24)

$

(33)

$

(33)










INTEREST EXPENSE

$

(5)

$

(7)

$

(9)

$

(14)










NET LOSS

$

(0)

$

(31)

$

(42)

$

(47)










NET LOSS PER COMMON SHARE –









BASIC AND DILUTED

$

(0.00)

$

(0.00)

$

(0.00)

$

(0.00)










WEIGHTED AVERAGE COMMON









SHARES OUTSTANDING – BASIC AND DILUTED


34,875


34,875


34,875


34,875



SOURCE Claimsnet.com inc.



RELATED LINKS

http://www.claimsnet.com