A.D.A.M., Inc. Reports Third Quarter Results; Fourth Consecutive Quarterly Operating Profit, Net Income of $0.04 Per Share.Business Editors ATLANTA--(BUSINESS WIRE)--Nov. 1, 2001 A.D.A.M., Inc. (Nasdaq: ADAM Adam, the first man, in the Bible Adam (ăd`əm), [Heb.,=man], in the Bible, the first man. In the Book of Genesis, God creates humankind in his image as a species of male and female, giving them dominion over other life. ), today reported results for the third quarter and the nine-month period ended September September: see month. 30, 2001. Net income for the three months ended September 30, 2001, was $281,000 or $0.04 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to a loss of $1,024,000 or $0.18 per fully diluted share in the year-ago quarter. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the three months ended September 30, 2001 was $339,000 or $0.05 per fully diluted share compared to an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $936,000 or $0.17 per fully diluted in the year-ago quarter. This marks the Company's fourth consecutive quarter of operating profit. Highlights for the third quarter include the following:
-- Improved cash position from $1,242,000 at December 31, 2000 to
$3,521,000 at the end of the third quarter. Shareholders
equity increased from $2,607,000 to $5,353,000;
-- Launched aggressive sales and marketing campaign into the
hospital market. Completed agreement with Premier Sourcing
Partners that will provide A.D.A.M. access to more than 1,800
Premier hospital members. Completed contracts with several
leading hospital organizations outside of the Premier
agreement;
-- Secured renewal agreements with Merck-Medco and Albertson's
Sav-On Drugs.
Revenues for the third quarter ended September 30, 2001, were $2,351,000 as compared to revenues of $2,852,000 during the same period last year. Revenues in the third quarter of 2000 reflected a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. increase of approximately $500,000 attributable to the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the Company's agreement with WebMD WebMD is a medical and wellness information service, primarily known for its public internet site, which provides health information, a symptom checklist, pharmacy information, a place to store personal medical information, and an online community with over 140 moderated expert-led completed in October October: see month. , 2000. The restructured agreement extended A.D.A.M.'s relationship with WebMD into 2003. For the nine month period ended September 30, 2001, the Company reported net income of $2,041,000 or $0.32 per fully diluted share, compared to a loss of $6,664,000 or $1.24 per fully diluted share, during the same period last year. The nine-month results benefited from a one-time gain of $1,808,000 on an asset sale completed in the second quarter of 2001. Revenues for the nine-month period ended September 30, 2001, increased to $6,821,000 compared to revenues of $6,361,000 during the same period last year. The Company reported an operating profit for the nine-month period ended September 30, 2001 of $461,000 or $0.07 per fully diluted share as compared to an operating loss of $5,644,000 or $1.05 per fully diluted share during the same period last year. "We delivered our fourth consecutive quarter of operating profits and significantly expanded our pipeline of new business in healthcare. The strength of A.D.A.M.'s business model continues to prove itself," commented Robert S Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. . Cramer Cramer in English, a surname, is commonly pronounced ['kɹeɪ.mə(ɹ)], and is from the German surname Krämer which also means "Kleinhändler"[1] , Jr., A.D.A.M.'s Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "The bottom line is that we are delivering profits at a time when many of our peers are struggling. Yet, the market opportunities for A.D.A.M.'s products and services continues to grow," added Cramer. "While our revenues for the third quarter remained relatively flat from the second quarter, it is important to note that we replaced over $1,600,000 in revenues since the beginning of the year and increased our overall revenues by 7%. The portal market, as we have seen, rapidly deflated de·flate v. de·flat·ed, de·flat·ing, de·flates v.tr. 1. a. To release contained air or gas from. b. To collapse by releasing contained air or gas. 2. in the fourth quarter of 2000 as more of the portals either failed, curtailed their spending and renewals, or asked for restructured agreements. Fortunately, we have now put most of this behind us, and our revenues on a go-forward basis are being built on solid ground with larger, more financially stable healthcare customers." "We continued to have success in expanding our footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. into healthcare. We completed a number of hospital and pharma-related contracts that provide excellent forward visibility, and have launched a series of new product offerings and service components that will enable us to further leverage and expand our customer contracts. This integrated approach, and our proven ability to execute, gives us confidence going forward into 2002," said Cramer. A.D.A.M. will host its third quarter conference call November November: see month. 1, 2001 at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy . The call will be web cast and will be available both live and archived on A.D.A.M.'s web site at www.adam.com. A digital replay will be made available shortly after the call and will run for one week. About A.D.A.M., Inc. For more than a decade, A.D.A.M. (Nasdaq: ADAM) has been a leading developer of interactive health and medical information for consumers, students and healthcare professionals. A.D.A.M.'s products combine physician-reviewed text, medical illustrations, multimedia animation animation Process of giving the illusion of movement to drawings, models, or inanimate objects. From the mid-1850s, such optical devices as the zoetrope produced the illusion of animation. Stop-action photography enabled the production of cartoon films. , interactive tools and technology that explain complex medical and health subject matter in a way that is easily understood by the reader. Since 1998, A.D.A.M. has been marketing its health information products to major website portals, healthcare providers and other healthcare-related organizations including the National Library of Medicine's MEDLINEplus MedlinePlus is a website containing health information from the world's largest medical library, the United States National Library of Medicine. The site is intended to be used by health care providers and patients, and designed to provide up-to-date, authoritative information. . A.D.A.M.'s proprietary content assets include an illustrated 3,800 topic medical encyclopedia encyclopedia, compendium of knowledge, either general (attempting to cover all fields) or specialized (aiming to be comprehensive in a particular field). Encyclopedias and Other Reference Books ; topical topical /top·i·cal/ (top´i-k'l) pertaining to a particular area, as a topical antiinfective applied to a certain area of the skin and affecting only the area to which it is applied. top·i·cal adj. health centers, 40,000 medical illustrations; 3D models; animations; and interactive tools and technology. A.D.A.M. is a founding member of Hi-Ethics, a coalition of the most widely referenced health websites and information providers committed to developing industry standards for quality of consumer health information. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Except for historical information, all of the statements, expectations and assumptions contained in this press release are forward-looking statements. These statements involve a number of risks and uncertainties that could cause actual results, performance or developments to differ materially. Factors that could affect the company's actual results, performance or developments include general economic conditions, development of the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the as a source of health information, pricing actions taken by competitors, demand for the company's health information, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. changes, and other laws that impact how the company conducts its business.
A.D.A.M., Inc.
Condensed Statement of Operations
(In thousands, except per share data)
(unaudited)
Three Months Nine Months
Ended September, 30 Ended September, 30
2001 2000 2001 2000
--------- --------- --------- ---------
Total revenues $ 2,351 $ 2,852 $ 6,821 $ 6,361
--------- --------- --------- ---------
Operating expenses:
Cost of revenues 445 202 852 521
General and administrative 431 720 1,627 2,688
Product and content
development 632 1,161 1,766 3,498
Sales and marketing 386 604 1,451 2,435
Depreciation and
amortization 118 1,101 664 2,250
Restructuring charges - - - 613
--------- --------- --------- ---------
Total operating expenses 2,012 3,788 6,360 12,005
--------- --------- --------- ---------
Operating income (loss) 339 (936) 461 (5,644)
Interest income (expense),
net 40 (47) 66 (937)
Realized loss on sale of
investment securities - - (62) -
Realized gain on sale of
assets - - 1,808 -
Income tax benefit 27 - - -
--------- --------- --------- ---------
Income (loss) before
losses from affiliate 406 (983) 2,273 (6,581)
Losses from affiliate (125) (41) (232) (83)
--------- --------- --------- ---------
Net income (loss) $ 281 $ (1,024) $ 2,041 $ (6,664)
========= ========= ========= =========
Basic net income (loss)
per common share $ 0.04 $ (0.18) $ 0.32 $ (1.24)
========= ========= ========= =========
Basic weighted average number
of common shares outstanding 6,524 5,626 6,372 5,386
========= ========= ========= =========
Diluted net income (loss)
per common share $ 0.04 $ (0.18) $ 0.32 $ (1.24)
========= ========= ========= =========
Diluted weighted average
number of common shares
outstanding 6,565 5,626 6,417 5,386
========= ========= ========= =========
Summary Balance Sheet Data
------------------------------
09/30/2001 12/31/2000
-------------- --------------
Cash and short term investments $ 3,555 $ 1,666
Accounts receivable-net 939 1,046
Total current assets 4,979 3,259
Total assets 7,490 6,817
Total liabilities 2,071 4,162
Shareholders' equity 5,419 2,655
Working capital 2,908 (903)
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