Claimsnet.com Reports Third Quarter 2010 Results

Oct 28, 2010, 15:41 ET from Claimsnet.com inc.

DALLAS, Oct. 28 /PRNewswire-FirstCall/ -- Claimsnet.com inc. (OTC Bulletin Board: CLAI), a leading provider of Internet-based claims processing solutions for the healthcare industry, today reported its results for the third quarter of 2010, which ended September 30, 2010.

"These third quarter results reflect our continued focus on improving gross profit margins through cost controls in a challenging economic environment," commented Don Crosbie, chief executive officer of Claimsnet. "During the third quarter we entered into our previously announced agreement with Blackhawk Partners, which involved an extraordinary one time expense of $50,000 being fully paid in this third quarter.  As a result of this agreement, we are actively seeking significant growth opportunities mainly through acquisition in the BPO (Business Process Outsourcing) space in the healthcare industry."

For the quarter ended September 30, 2010, Claimsnet reported revenues of $566,000 compared to the $565,000 reported for the third quarter of 2009.  Revenues for the nine months ended September 30, 2010 were $1,741,000, a 6% increase compared to the $1,646,000 reported for the nine months of 2009.

Cost of revenues for the third quarter of 2010 was $418,000 compared to $426,000 for the third quarter of 2009, a 2% decrease. Cost of revenues for the nine months of 2010 was $1,266,000 compared to $1,258,000 for the nine months of 2009, a 1% increase.  Selling, general and administrative expenses of $233,000 were reported for the third quarter of 2010 compared to $200,000 reported for the third quarter of 2009. Selling, general and administrative expenses of $593,000 were reported for the nine months of 2010 compared to $671,000 reported for the nine months of 2009.

Claimsnet reported a gross profit of $148,000 for the third quarter of 2010, compared with a gross profit of $139,000 for the third quarter of 2009. Claimsnet reported a gross profit of $475,000 for the nine months of 2010, compared with a gross profit of $388,000 for the nine months of 2009.      

The loss from operations for the third quarter of 2010 was $(85,000), including the above mentioned one time expense of $50,000, compared to $(61,000) reported for the third quarter of 2009. The loss from operations for the nine months of 2010 was $(118,000) compared to $(283,000) reported for the nine months of 2009. The net loss for the third quarter of 2010 was $(93,000), or $(0.00) per share, compared to net loss of ($69,000), or $(0.00) per share, for the third quarter of 2009. The net loss for the nine months of 2010 was $(140,000), or $(0.00) per share, compared to net loss of ($313,000), or $(0.01) per share, for the nine months of 2009.

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.

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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,

2010

2009

2010

2009

REVENUES

$      566

$      565

$     1,741

$     1,646

COST OF REVENUES

$      418

$      426

$     1,266

$     1,258

GROSS PROFIT

$      148

$      139

$        475

$        388

SELLING, GENERAL AND ADMINISTRATIVE

$      233

$      200

$        593

$        671

LOSS FROM OPERATIONS

$      (85)

$      (61)

$      (118)

$      (283)

INTEREST EXPENSE

$        (8)

$        (8)

$        (22)

$        (30)

NET LOSS

$      (93)

$      (69)

$      (140)

$      (313)

NET LOSS PER COMMON SHARE – BASIC AND DILUTED

$   (0.00)

$   (0.00)

$     (0.00)

$     (0.01)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – BASIC AND DILUTED

34,875

34,787

34,875

33,836

SOURCE Claimsnet.com inc.



RELATED LINKS

http://www.claimsnet.com