Claimsnet.com Reports Third Quarter 2011 Results

Nov 03, 2011, 15:56 ET from Claimsnet.com inc.

DALLAS, Nov. 3, 2011 /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 2011, which ended September 30, 2011.

For the quarter ended September 30, 2011, Claimsnet reported revenues of $582,000 compared to the $566,000 reported for the third quarter of 2010, a 3% increase.  Revenues for the nine months ended September 30, 2011 were $1,740,000 compared to the $1,741,000 reported for the nine months of 2010.

Cost of revenues for the third quarter of 2011 was $430,000 compared to $418,000 for the third quarter of 2010, a 3% increase. Cost of revenues for the nine months of 2011 was $1,279,000 compared to $1,266,000 for the nine months of 2010, a 1% increase.  Selling, general and administrative expenses of $179,000 were reported for the third quarter of 2011 compared to $233,000 reported for the third quarter of 2010, a 23% decrease. Selling, general and administrative expenses of $521,000 were reported for the nine months of 2011 compared to $593,000 reported for the nine months of 2010, a 12% decrease. The decrease in selling, general and administrative expenses was primarily due to a one-time expense related to the non-refundable advisory fee paid to Blackhawk Partners in 2010.

Claimsnet reported a gross profit of $152,000 for the third quarter of 2011, compared with a gross profit of $148,000 for the third quarter of 2010. Claimsnet reported a gross profit of $461,000 for the nine months of 2011, compared with a gross profit of $475,000 for the nine months of 2010.

The loss from operations for the third quarter of 2011 was $(27,000), compared to $(85,000) reported for the third quarter of 2010, which included the above mentioned one time expense of $50,000. The loss from operations for the nine months of 2011 was $(60,000) compared to $(118,000) reported for the nine months of 2010. The net loss for the third quarter of 2011 was $(32,000), or $(0.00) per share, compared to net loss of ($93,000), or $(0.00) per share, for the third quarter of 2010. The net loss for the nine months of 2011 was $(74,000), or $(0.00) per share, compared to net loss of ($140,000), or $(0.00) per share, for the nine months of 2010.

"The results for the third quarter reflect a continuing 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% and costs remain in line with our efforts to maximize the productivity of every employee in the company," 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 to improve value for shareholders as we move forward."

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,


2011

2010

2011

2010






REVENUES

$582

$566

$1,740

$1,741






COST OF REVENUES

$430

$418

$1,279

$1,266






GROSS PROFIT

$152

$148

$461

$475






SELLING, GENERAL AND ADMINISTRATIVE

$179

$233

$521

$593






LOSS FROM OPERATIONS

$(27)

$(85)

$(60)

$(118)






INTEREST EXPENSE – RELATED PARTIES

$(5)

$(8)

$(14)

$(22)






NET LOSS

$(32)

$(93)

$(74)

$(140)






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