VitalWorks Reports First Quarter Results; Reorganization and Restructuring Plans Continue on Course

Apr 25, 2001, 01:00 ET from VitalWorks

    RIDGEFIELD, Conn., April 25 /PRNewswire/ -- InfoCure Corporation, doing
 business as VitalWorks (Nasdaq:   VWKS), a leader in healthcare practice
 management software and services, today reported financial results for its
 first quarter ended March 31, 2001.
     For the quarter, the company reported a net loss of $(12.8) million or
 $(.36) per share.  Excluding the operations of PracticeWorks, Inc., spunoff
 effective March 5th ($5.4 million loss), depreciation and amortization of
 $6.7 million, and nonrecurring costs of $1.7 million, VitalWorks would have
 had operating income (or EBITDA) of $1.2 million, or $.03 per pro forma
 diluted share, for its first quarter ended March 31, 2001.  On the same basis,
 the company had an operating loss of $(4.1) million, or $(.13) per pro forma
 share, for the corresponding quarter of the prior year.  Revenues of
 $25.4 million compare to $25.9 million for the quarter ended March 31, 2000
 and reflect the near-term result of management's reorganization and
 redeployment of the sales force and redirection of its marketing focus.
 Revenues were in line with the company's expectations.
     Joe Walsh, president and CEO, said, "We are very pleased with the progress
 we are making.  We are precisely on course in moving the company forward;
 we're clear on our mission and extremely focused."  Walsh continued, "With our
 reorganizing and restructuring efforts winding down, we are now able to
 execute on our short (calendar 2001) and long term growth strategies (2002 and
 beyond)."
     The company's EBITDA of $1.2 million exceeded its expectation of
 $0.4 million.  VitalWorks reiterated its outlook for the remainder of 2001 and
 for the year 2002:  it expects revenues and EBITDA of approximately $106
 million and $6 million for 2001, and $120 million and $17 million in 2002,
 respectively.
     The company ended the quarter with $7.1 million in cash and cash
 equivalents, up from $5.9 million at December 31, 2000.  Days sales
 outstanding was 37 days.  Looking forward, as license and system sales
 increase, VitalWorks expects its DSO will range from 40 to 50 days.
     In a separate announcement today, VitalWorks publicized the planned
 rollout of its clinical solution at Concentra Corporation.  Concentra is the
 leading provider of comprehensive, cost-containment services in the
 occupational, auto and group healthcare markets.
 
     About VitalWorks
     VitalWorks is a leading, nationwide provider of information management
 technology and services targeted to healthcare practices and organizations.
 VitalWorks provides IT-based solutions for general medical practices and has
 specialty-specific products and services for specialties such as radiology,
 anesthesiology, ophthalmology, emergency medicine, plastic surgery, and
 dermatology.  VitalWorks also offers enterprise-level systems designed for
 large physician groups and networks.  VitalWorks' wide range of software
 solutions automate the administrative, financial, and clinical information
 management functions for physicians and other healthcare providers.
 VitalWorks provides its clients with ongoing software services, training
 services, electronic data interchange (EDI) services, and a variety of
 Internet-based services.  Visit VitalWorks at www.vitalworks.com .
     VitalWorks is a registered trademark of InfoCure Corporation.  Subject to
 shareholder approval, InfoCure will change its name to VitalWorks Inc.
 
     Safe Harbor Statement
     This press release contains "forward-looking statements" within the
 meaning of the federal securities laws.  These forward-looking statements
 include statements regarding future events and developments and our future
 performance, as well as our management's expectations, beliefs, plans,
 estimates or projections relating to the future, including revenue and EBITDA
 projections, and the figures regarding days sales outstanding.  These forward-
 looking statements are subject to a number of risks and uncertainties. Among
 the important factors that could cause actual results to differ materially
 from those indicated by these forward-looking statements are the risks
 inherent in operating VitalWorks and PracticeWorks as independent public
 companies; uncertainties concerning each company's future capital needs and
 the ability to obtain such capital; possible deferral, delay or cancellation
 by customers of computer system purchase decisions; variations in the volume
 and timing of software license and systems sales and installations; possible
 delays in product development; changing economic, political and regulatory
 influences on the healthcare industry; changes in product pricing policies;
 general economic conditions; and the risk factors detailed from time-to-time
 in our reports filed from time-to-time with the U.S. Securities and Exchange
 Commission, including our Annual Report on Form 10-K for the year ended
 December 31, 2000.  Management believes that the forward-looking statements
 contained in this press release are reasonable and are based on reasonable
 assumptions and forecasts.  However, you should not place undue reliance on
 such statements.  These statements are based on current expectations and speak
 only as of the date of such statements.  We undertake no obligation to
 publicly update or revise any forward-looking statement, whether as a result
 of future events, new information or otherwise.
 
                                     VitalWorks
                  Consolidated Statement of Operations (Unaudited)
                       (in thousands, except per share data)
 
 
                                                       Three Months Ended
                                                             March 31,
                                                         2001           2000
     Revenues
       Software licenses and system sales              $4,553         $6,628
       Maintenance and services                        20,865         19,271
     Total revenues                                    25,418         25,899
 
     Costs and expenses
     Cost of revenues:
       Software licenses and system sales               1,220          2,339
       Maintenance and services                         5,350          4,288
     Research and development                           2,065          4,255
     Selling, general and administrative costs         15,544         19,133
     Depreciation and amortization                      6,707          6,757
     Nonrecurring costs, including $850 for
      unused financing                                  1,747            ---
     Restructuring costs                                  ---            426
                                                       32,633         37,198
     Operating loss                                    (7,215)       (11,299)
     Interest expense and other, net                      153            847
     Loss from continuing operations, before
      income taxes                                     (7,368)       (12,146)
     Income tax benefit                                               (3,923)
     Loss from continuing operations                   (7,368)        (8,223)
     Loss from discontinued operations, net of
      income tax benefit of $1,502 in 2000             (5,384)        (2,958)
     Net loss                                        $(12,752)      $(11,181)
 
 
     Earnings (loss) per share - basic and diluted
       Continuing operations                           $(0.21)        $(0.25)
       Discontinued operations                          (0.15)         (0.09)
                                                       $(0.36)        $(0.34)
 
     Average number of shares outstanding
       Basic and diluted                               35,406         32,773
 
 
                                     VitalWorks
                       Consolidated Balance Sheet (Unaudited)
                       (in thousands, except per share data)
 
                                                    March 31,   December 31,
                                                      2001         2000 (a)
     Assets
     Current assets:
       Cash and cash equivalents                       $7,127         $5,969
       Accounts receivable - net of allowances
        of $1,652 and $1,936                           10,347         11,199
       Other receivables                                1,365          1,332
       Inventory                                          634            639
       Deferred income taxes                            4,816          3,859
       Prepaid expenses and other current assets          806            629
     Total current assets                              25,095         23,627
 
     Property and equipment - net of accumulated
      depreciation of $6,199 and $9,175                17,416         19,291
     Goodwill - net of accumulated amortization
      of $38,509 and $32,763                           37,645         43,390
     Product development and financing costs
      - net of accumulated amortization
      of $358 and $267                                  1,702          1,041
     Deferred income taxes                             21,918         23,056
     Other assets                                         510            419
     Net noncurrent assets of discontinued
      operations                                          ---         33,001
     Total assets                                    $104,286      $ 143,825
 
     Liabilities and stockholders' equity
     Current liabilities:
       Accounts payable                                $4,611         $4,532
       Accrued expenses                                11,532         10,182
       Accrued restructuring costs                      5,874          7,454
       Deferred revenue                                 7,088          6,704
       Current portion of long-term debt                4,128          2,727
       Net current liabilities of discontinued
        operations                                        ---          3,172
     Total current liabilities                         33,233         34,771
 
     Long-term debt                                    34,996         35,057
     Other liabilities, primarily deferred
      gain on sale of assets                            5,229          5,547
 
     Convertible, redeemable preferred
      stock issuable                                      ---         10,000
     Stockholders' equity:
     Common stock - $.001 par value; 200,000,000
      shares authorized; and 37,167,352 and
      34,236,235 shares issued and outstanding             37             34
     Additional paid-in capital                       189,390        203,959
     Notes receivable - director and former
      directors                                       (12,735)       (12,431)
     Accumulated deficit                             (145,395)      (132,643)
     Treasury stock, at cost, 125,000 shares            (469)          (469)
     Total stockholders' equity                        30,828         58,450
     Total liabilities and stockholders' equity      $104,286      $ 143,825
 
     (a) Certain amounts have been reclassified to conform to the 2001
         presentation.
 
 
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SOURCE VitalWorks
    RIDGEFIELD, Conn., April 25 /PRNewswire/ -- InfoCure Corporation, doing
 business as VitalWorks (Nasdaq:   VWKS), a leader in healthcare practice
 management software and services, today reported financial results for its
 first quarter ended March 31, 2001.
     For the quarter, the company reported a net loss of $(12.8) million or
 $(.36) per share.  Excluding the operations of PracticeWorks, Inc., spunoff
 effective March 5th ($5.4 million loss), depreciation and amortization of
 $6.7 million, and nonrecurring costs of $1.7 million, VitalWorks would have
 had operating income (or EBITDA) of $1.2 million, or $.03 per pro forma
 diluted share, for its first quarter ended March 31, 2001.  On the same basis,
 the company had an operating loss of $(4.1) million, or $(.13) per pro forma
 share, for the corresponding quarter of the prior year.  Revenues of
 $25.4 million compare to $25.9 million for the quarter ended March 31, 2000
 and reflect the near-term result of management's reorganization and
 redeployment of the sales force and redirection of its marketing focus.
 Revenues were in line with the company's expectations.
     Joe Walsh, president and CEO, said, "We are very pleased with the progress
 we are making.  We are precisely on course in moving the company forward;
 we're clear on our mission and extremely focused."  Walsh continued, "With our
 reorganizing and restructuring efforts winding down, we are now able to
 execute on our short (calendar 2001) and long term growth strategies (2002 and
 beyond)."
     The company's EBITDA of $1.2 million exceeded its expectation of
 $0.4 million.  VitalWorks reiterated its outlook for the remainder of 2001 and
 for the year 2002:  it expects revenues and EBITDA of approximately $106
 million and $6 million for 2001, and $120 million and $17 million in 2002,
 respectively.
     The company ended the quarter with $7.1 million in cash and cash
 equivalents, up from $5.9 million at December 31, 2000.  Days sales
 outstanding was 37 days.  Looking forward, as license and system sales
 increase, VitalWorks expects its DSO will range from 40 to 50 days.
     In a separate announcement today, VitalWorks publicized the planned
 rollout of its clinical solution at Concentra Corporation.  Concentra is the
 leading provider of comprehensive, cost-containment services in the
 occupational, auto and group healthcare markets.
 
     About VitalWorks
     VitalWorks is a leading, nationwide provider of information management
 technology and services targeted to healthcare practices and organizations.
 VitalWorks provides IT-based solutions for general medical practices and has
 specialty-specific products and services for specialties such as radiology,
 anesthesiology, ophthalmology, emergency medicine, plastic surgery, and
 dermatology.  VitalWorks also offers enterprise-level systems designed for
 large physician groups and networks.  VitalWorks' wide range of software
 solutions automate the administrative, financial, and clinical information
 management functions for physicians and other healthcare providers.
 VitalWorks provides its clients with ongoing software services, training
 services, electronic data interchange (EDI) services, and a variety of
 Internet-based services.  Visit VitalWorks at www.vitalworks.com .
     VitalWorks is a registered trademark of InfoCure Corporation.  Subject to
 shareholder approval, InfoCure will change its name to VitalWorks Inc.
 
     Safe Harbor Statement
     This press release contains "forward-looking statements" within the
 meaning of the federal securities laws.  These forward-looking statements
 include statements regarding future events and developments and our future
 performance, as well as our management's expectations, beliefs, plans,
 estimates or projections relating to the future, including revenue and EBITDA
 projections, and the figures regarding days sales outstanding.  These forward-
 looking statements are subject to a number of risks and uncertainties. Among
 the important factors that could cause actual results to differ materially
 from those indicated by these forward-looking statements are the risks
 inherent in operating VitalWorks and PracticeWorks as independent public
 companies; uncertainties concerning each company's future capital needs and
 the ability to obtain such capital; possible deferral, delay or cancellation
 by customers of computer system purchase decisions; variations in the volume
 and timing of software license and systems sales and installations; possible
 delays in product development; changing economic, political and regulatory
 influences on the healthcare industry; changes in product pricing policies;
 general economic conditions; and the risk factors detailed from time-to-time
 in our reports filed from time-to-time with the U.S. Securities and Exchange
 Commission, including our Annual Report on Form 10-K for the year ended
 December 31, 2000.  Management believes that the forward-looking statements
 contained in this press release are reasonable and are based on reasonable
 assumptions and forecasts.  However, you should not place undue reliance on
 such statements.  These statements are based on current expectations and speak
 only as of the date of such statements.  We undertake no obligation to
 publicly update or revise any forward-looking statement, whether as a result
 of future events, new information or otherwise.
 
                                     VitalWorks
                  Consolidated Statement of Operations (Unaudited)
                       (in thousands, except per share data)
 
 
                                                       Three Months Ended
                                                             March 31,
                                                         2001           2000
     Revenues
       Software licenses and system sales              $4,553         $6,628
       Maintenance and services                        20,865         19,271
     Total revenues                                    25,418         25,899
 
     Costs and expenses
     Cost of revenues:
       Software licenses and system sales               1,220          2,339
       Maintenance and services                         5,350          4,288
     Research and development                           2,065          4,255
     Selling, general and administrative costs         15,544         19,133
     Depreciation and amortization                      6,707          6,757
     Nonrecurring costs, including $850 for
      unused financing                                  1,747            ---
     Restructuring costs                                  ---            426
                                                       32,633         37,198
     Operating loss                                    (7,215)       (11,299)
     Interest expense and other, net                      153            847
     Loss from continuing operations, before
      income taxes                                     (7,368)       (12,146)
     Income tax benefit                                               (3,923)
     Loss from continuing operations                   (7,368)        (8,223)
     Loss from discontinued operations, net of
      income tax benefit of $1,502 in 2000             (5,384)        (2,958)
     Net loss                                        $(12,752)      $(11,181)
 
 
     Earnings (loss) per share - basic and diluted
       Continuing operations                           $(0.21)        $(0.25)
       Discontinued operations                          (0.15)         (0.09)
                                                       $(0.36)        $(0.34)
 
     Average number of shares outstanding
       Basic and diluted                               35,406         32,773
 
 
                                     VitalWorks
                       Consolidated Balance Sheet (Unaudited)
                       (in thousands, except per share data)
 
                                                    March 31,   December 31,
                                                      2001         2000 (a)
     Assets
     Current assets:
       Cash and cash equivalents                       $7,127         $5,969
       Accounts receivable - net of allowances
        of $1,652 and $1,936                           10,347         11,199
       Other receivables                                1,365          1,332
       Inventory                                          634            639
       Deferred income taxes                            4,816          3,859
       Prepaid expenses and other current assets          806            629
     Total current assets                              25,095         23,627
 
     Property and equipment - net of accumulated
      depreciation of $6,199 and $9,175                17,416         19,291
     Goodwill - net of accumulated amortization
      of $38,509 and $32,763                           37,645         43,390
     Product development and financing costs
      - net of accumulated amortization
      of $358 and $267                                  1,702          1,041
     Deferred income taxes                             21,918         23,056
     Other assets                                         510            419
     Net noncurrent assets of discontinued
      operations                                          ---         33,001
     Total assets                                    $104,286      $ 143,825
 
     Liabilities and stockholders' equity
     Current liabilities:
       Accounts payable                                $4,611         $4,532
       Accrued expenses                                11,532         10,182
       Accrued restructuring costs                      5,874          7,454
       Deferred revenue                                 7,088          6,704
       Current portion of long-term debt                4,128          2,727
       Net current liabilities of discontinued
        operations                                        ---          3,172
     Total current liabilities                         33,233         34,771
 
     Long-term debt                                    34,996         35,057
     Other liabilities, primarily deferred
      gain on sale of assets                            5,229          5,547
 
     Convertible, redeemable preferred
      stock issuable                                      ---         10,000
     Stockholders' equity:
     Common stock - $.001 par value; 200,000,000
      shares authorized; and 37,167,352 and
      34,236,235 shares issued and outstanding             37             34
     Additional paid-in capital                       189,390        203,959
     Notes receivable - director and former
      directors                                       (12,735)       (12,431)
     Accumulated deficit                             (145,395)      (132,643)
     Treasury stock, at cost, 125,000 shares            (469)          (469)
     Total stockholders' equity                        30,828         58,450
     Total liabilities and stockholders' equity      $104,286      $ 143,825
 
     (a) Certain amounts have been reclassified to conform to the 2001
         presentation.
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X56046840
 
 SOURCE  VitalWorks