A.D.A.M. Software, Inc. Announces First Quarter Results, As Company Accelerates Strategic Shift To Online Consumer Health Market.ATLANTA--(BUSINESS WIRE)--Aug. 12, 1999-- A.D.A.M. Software, Inc. (Nasdaq: adam) doing business as adam.com, a leading source for online medical and health information, today announced financial results for the first quarter of fiscal 2000. For the first quarter ended June June: see month. 30, 1999, revenues were $800,000 compared to revenues for the same period last year of $1,748,000. The Company reported a net loss of $2,296,000 or $0.51 per 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 net income of $208,000, or $0.04 per diluted share for the same period last year. "The first quarter results reflect the strategic shift we have made from our traditional software business and the major investment we have begun to make in our new Internet See Web 2.0 and Internet2. model. We have taken significant and dramatic steps over the last several months to focus our business on the online consumer health information market and the tremendous opportunities it represents," said Robert Cramer Robert E. "Bud" Cramer Jr. (b. August 22, 1947), American politician, has been a Democratic member of the United States House of Representatives since 1991, representing Alabama's At-large congressional district, which includes the northernmost part of Alabama, , chief executive officer of adam.com. "According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. industry analysts, 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 healthcare market has the potential to grow to more than $200 billion by 2003 and we intend to secure a leadership position in that market." "With this shift, we anticipate that adam.com's Internet-derived revenues will begin to ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale during the remainder of the fiscal year ending March 31, 2000," said Cramer. "Our goal is to establish adam.com as the leading source in the fast-growing online medical and health information category. Towards this goal, our strategy is to focus heavily on expanding our Internet distribution through syndication See syndication format. and OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and partnerships and to provide consumers - and our partners - with the most comprehensive, interactive and user-friendly content on the Web." In just a few short months, adam.com has already begun to make significant progress in these areas, completing a number of new strategic relationships with leading Internet and healthcare companies such as Yahoo!, Excite, CNN CNN or Cable News Network Subsidiary company of Turner Broadcasting Systems. It was created by Ted Turner in 1980 to present 24-hour live news broadcasts, using satellites to transmit reports from news bureaus around the world. Network Group, Cox Interactive Media, and Merck-Medco Managed Care. In addition to these new relationships, adam.com is already the primary source of disease-related content for a number of well-respected health Web sites, including Healtheon, Health Answers, Health Central and Health Scout. "We believe this early success validates our strong positioning in the emerging e-health E-health Informatics A philosophy that empowers–E = electronic–health care consumers by bringing information, products and services online marketplace and readies us to capture a leading position in the category," said Cramer. On the content end, the Company has just begun to tap into the vast adam.com assets developed over 10 years for its traditional software products. This virtual library of information includes a 1500 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 and the Company's award-winning archives of visual and interactive content. adam.com has also made content-related acquisitions where there was strategic fit, recently completing two major asset acquisitions Information Medical Systems, Inc. and drgreene.com. To update and expand this content and apply it to the Web, adam.com has assembled as·sem·ble v. as·sem·bled, as·sem·bling, as·sem·bles v.tr. 1. To bring or call together into a group or whole: assembled the jury. 2. a team of medical editors, writers, artists, illustrators and clinicians. "We believe our consumer-friendly, interactive content will create competitive barriers that will be tough to overcome. The content we have developed or acquired over the past 10 years is not easy to create or duplicate DUPLICATE. The double of anything. 2. It is usually applied to agreements, letters, receipts, and the like, when two originals are made of either of them. Each copy has the same effect. ," said Cramer. "Our investment in adam.com's technology platform will also give us the ability to manage, maintain and syndicate Syndicate organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018] See : Gangsterism our proprietary content in a scalable manner. While these investments contribute to the growth in our expenses today, we believe these consumer-smart technologies will help us attract syndication and OEM partners and will contribute to our growth in the promising e-health market." "Our model should allow us to grow our syndication network and the new measures of our success including page views, unique visitors A count of how many different people access a Web site. For example, if a user leaves and comes back to the site five times during the measurement period, that person is counted as one unique visitor, but would count as five "user sessions. and user registration/data, as well as associated revenues derived from advertising, sponsorships and e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. ," Cramer concluded. About adam.com adam.com (Nasdaq: ADAM) is a leading provider of online medical and health information, publisher of a comprehensive Medical Encyclopedia and creates a variety of interactive, multi-media educational materials. Through partnerships with leading Web destinations, adam.com has become the most widely referenced medical resource on the Internet. The company's complete body of knowledge includes more than 10,000 pages of medical and health information covering over 1,500 topics and a 500 gigabyte One billion bytes. Also GB, Gbyte and G-byte. See giga and space/time. (unit) gigabyte - 2^30 = 1,073,741,824 bytes = 1024 megabytes. Roughly the amount of data required to encode a human gene sequence (including all the redundant codons). See prefix. library of medical illustrations, photos, animation, videos and interactive content. adam.com is based in Atlanta with its major Internet operations in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden . Forward Looking Statements Except for historical information, all of the statements, expectations and assumptions contained in this press release are 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. . These statements involve a number of risks and uncertainties that could cause actual results, performance or developments to differ materially. Factors which could affect the Company's actual results, performance or developments include general economic conditions, the development of the Internet as a source of health information, pricing actions taken by competitors, the demand for the Company's health information, regulatory changes, and other laws which impact the way in which the Company conducts its business. adam.com is a trademark of adam.com. -0-
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Summary Financial Information
(in thousands, except per share amounts)
Three Months Ended
June 30,
--------------------
1999 1998
------- -------
Product revenues $ 769 $ 1,748
Internet revenues 31 --
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Total revenues 800 1,748
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Cost and expenses:
Cost of revenues 195 331
Sales and marketing 691 641
Product and content development 1,149 234
General and administrative 1,131 449
------- -------
Total operating expenses 3,204 1,655
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Operating (loss) income (2,404) 93
Interest income 71 115
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(Loss) income before income taxes (2,333) 208
Income taxes -- --
Minority interest in consolidated
subsidiary (37) --
------- -------
Net (loss) income $(2,296) $ 208
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Basic and diluted net (loss)
income per common share $ (0.51) $ 0.04
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Weighted average number of common
shares and common share equivalents
outstanding - diluted 4,514 4,759
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Summary Balance Sheet Data
June 30, March 31,
1999 1999
------ ------
Cash and investment securities $5,476 $6,161
Accounts receivable - net 477 950
Inventories 304 292
Total current assets 6,506 7,567
Total assets 8,275 8,970
Total liabilities and minority interest 1,379 1,174
Stockholders' equity 6,896 7,796
Working capital 5,190 6,393
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