AHT Corporation Reports Third-Quarter Results: Projects Significant Revenue Growth for 2000 and 2001.TARRYTOWN Tarrytown (târ`ētoun), village (1990 pop. 10,739), Westchester co., SE N.Y., a residential suburb of New York City, on the E bank of the Hudson opposite Nyack; settled in the 17th cent. by the Dutch, inc. 1870. , N.Y.--(BUSINESS WIRE)--Nov. 15, 1999-- AHT AHT Animal Health Trust (Suffolk, England) AHT American Hairless Terrier (dog breed) AHT After Hours Trading AHT Animal Health Technician AHT Anchor Handling Tug Corporation (Nasdaq: AHTC AHTC Akademischer Hockey Und Tennis Club ) reported its financial results for the third quarter ended September September: see month. 30, 1999. The Company also reported that based on customer agreements and strategic relationships announced to date and those that are currently being negotiated with national healthcare organizations, the Company is positioned for significant revenue growth in 2000 and 2001. Third-Quarter Results For the three months ended September 30, 1999, AHT reported a net loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of ($2.8) million, or ($0.26) for basic and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , compared with a net loss from continuing operations of ($5.1) million, or ($0.48) for basic and diluted earnings per share for this year's second quarter. Losses in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. in the third quarter were ($2.9) million compared with ($5.4) million in the second quarter. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in the third quarter were $2.7 million compared with $5.3 million in the second quarter, which included a $2.5 million payment for settlement fees and legal expenses incurred in connection with the Bukstel and Halfpenny (B&H) litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . Recognized revenues in the third quarter, as compared with those in the second quarter, increased slightly to $213,000, and current contract backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. totaled $1.8 million, most of which is still expected to be recognized in the fourth quarter as customer installations at hospital-affiliated laboratories are completed for the Company's Dr. Chart(R) product. Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 remediation efforts of these institutions continued to impact AHT's revenue growth by slowing implementation of AHT's contracted backlog of business and completion of new sales. However, the Company believes revenues in the fourth quarter will grow as contract backlog is recognized and new license fees relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc additional Dr. Chart sales activity are generated. In addition, the Company's introduction in mid-October n. 1. the middle part of October. Noun 1. mid-October - the middle part of October period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" of its @Rx(TM) 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 prescription management Web site is contributing a new source of revenue for the Company, with several completed sales and others expected to be closed in the fourth quarter. As such, AHT continues to expect to meet its 1999 revenue target of $3 million or above. Achieving 1999 targeted revenues is contingent on Adj. 1. contingent on - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent upon, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent completing Dr. Chart installations with the requisite customer participation and generating new Dr. Chart and @Rx license revenues. AHT's cash position at the end of the third quarter totaled $5.9 million, as compared with $10.9 million at the end of the second quarter. During the latest quarter, the Company used approximately $2.5 million of its cash to support operations and $2.5 million for settlement fees and legal expenses incurred in connection with the B&H litigation. AHT believes that its cash on hand, targeted revenues from operations, collection of other receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed , and interest income will be sufficient to fund its planned operations through the end of 2000. Business Developments Commenting on AHT's business activity, Jon JON Jonah JON Jesus of Nazareth JON Job Order Number JON Johnston Island, US, Outlying Islands (Airport Code) Edelson, MD, Chairman, 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. and President, stated, "@Rx was successfully launched in mid-October and has generated a high level of interest from the prescription management industry. Since then, we have already signed two leading e-pharmacies, drugstore.com drugstore.com is an internet pharmacy headquartered in Bellevue, Washington. Its web operations were launched on February 24, 1999. Partnerships with other companies allow customers to pick up prescriptions at Rite Aid stores, enables drugstore. (TM) and PlanetRx.com, and are in discussions with other pharmacies This article is a list of major pharmacies (also known as chemists and drugstores) by country. Australia Pharmacies in Australia are mostly independently-owned by pharmacists, often operated as franchises of retail brands offered by the three major , both on-line and `bricks and mortar A store (shop, supermarket, department store, etc.) in the real world. Contrast with clicks and mortar. .' We are also in advanced discussions with major pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. benefit managers (PBMs), which collectively cover the majority of the US population." Dr. Edelson explained that @Rx is being aggressively marketed to physicians as a destination site for electronic prescription writing and to PBMs, pharmacies, and Integrated Delivery Networks (IDNs) who wish to conduct prescription transactions with physicians. In addition, he said AHT intends to distribute @Rx through on-line linkages to other healthcare Web sites that want to offer electronic prescription writing as a means of increasing the functionality and "stickiness See sticky. " of their own sites. "We believe that @Rx is the nation's first Internet prescription management service and, as such, has created a `first mover' advantage for our Company. The Company intends to leverage this first mover mover /mov·er/ (moo´ver) that which produces motion. prime mover a muscle that acts directly to bring about a desired movement. advantage as well as its two patents for electronic prescription writing to stay ahead of the competition. Each of these constitutes a barrier to entry for any potential competitors," Dr. Edelson noted. AHT's Web-based Dr. Chart laboratory product and its system interface offerings continue to attract strong interest from clinical laboratories. Recently, the Company announced a major contract with LabCorp, the second largest clinical laboratory in the nation. "We are in discussions with a number of IDNs. Unfortunately, because the IDNs are focused on internal Y2K issues, they are making limited commitments across the board in 1999 for any new information technology product or service installations, including our laboratory connectivity product. However," Dr. Edelson said, "many of these prospective IDN (Internationalized Domain Name) A .com or .net domain name that is represented in non-English characters and symbols, with .com and .net appended at the end in English letters. customers have indicated to us that Dr. Chart will be a high priority in 2000, beginning in the first quarter. Non-IDN customers have not been delayed in committing work to us because of Y2K. LabCorp, for example, is moving forward on current and new projects." Transaction-Based Business Emerges As a business-to-business provider of clinical 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. solutions, AHT expects its growth will be driven by transaction revenues, explained Jeff Sauerhoff, Chief Financial Officer. "@Rx is an Internet service bureau that charges customers such as PBMs and pharmacies on a per transaction fee basis. Dr. Chart's pricing model is evolving from a business line predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. based on software license fees to one that is based primarily on bundled transaction fees, which are expressed as access fees per physician per month," said Mr. Sauerhoff. "In the course of securing large customers, this arrangement provides us with recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. and growing transaction fee revenues as we further penetrate the physician population that is affiliated with each of our customers. Given the concentration of the prescription management industry, in which roughly half a dozen potential customers account for the vast majority of the PBM PBM - play by mail. See play by electronic mail. industry, securing some or all of these customers translates into a significant opportunity for our Company. Likewise," he added, "there is a potential customer base of approximately 4,000 IDNs for our Dr. Chart product. We believe these IDNs constitute over 60% of the clinical laboratory market. The growth potential is large, in that each IDN brings with it anywhere from 100 to 1,000 affiliated physicians." Mr. Sauerhoff said that AHT's business model offers substantial potential for leverage. "A single prescription," he said, "may generate two transaction fees, one from the PBM and another from the pharmacy that fulfills the prescription, if it is not filled at the PBM's mail order facility. Access to each @Rx physician user may be potentially re-sold to multiple PBMs and pharmacies. In addition, we believe there is an opportunity to cross-install @Rx and Dr. Chart for our physician users and to sell such access to both the prescription and laboratory management industries." Significant Revenue Projected Mr. Sauerhoff noted that the potential market for Internet clinical e-commerce that AHT is targeting is large, with approximately 3 billion paper-based prescription orders and over 1 billion paper-based laboratories written annually by physicians. Mr. Sauerhoff said that the conversion of even a small percentage of these orders to Internet-based transactions has the potential to result in significant revenue growth for the Company. Based on current industry trends, its existing and projected sales pipeline, and discussions and contract negotiations with national healthcare organizations, Mr. Sauerhoff said that AHT's revenue targets are between $8 and $8.5 million for 2000 with significant growth in 2001. Mr. Sauerhoff added that AHT believes @Rx will contribute a significant and increasing portion of the Company's revenues in 2000 and 2001. AHT Corporation (Nasdaq: AHTC) is a leading national provider of Internet-based clinical e-commerce among physicians, other healthcare providers and healthcare organizations. The Company provides information technology enabling the electronic management of laboratory and prescription transactions. AHT's customer base is comprised of some of the nation's leading hospital systems, national and regional laboratories, pharmacy benefit managers and pharmacies. For more information, please visit AHT's web site at www.ahtech.com. This press release contains forward-looking information regarding AHT Corporation. The 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. are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements, including statements as to industry trends, future economic performance, anticipated profitability, anticipated revenues and expenses, anticipated transactions, planned product development, and products or service line growth may be significantly impacted by certain risks and uncertainties, including, but not limited to, failure of the clinical e-commerce industry to develop at anticipated rates, failure of the Company's clinical information technology products and services and planned products to gain significant market acceptance,customer delay in installing new systems because of their Y2K-related issues,delays in customer acceptance of AHT software, competition and other economic factors. These forward-looking statements speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and the Company disclaims any intention or obligations to update these forward-looking statements in the future. Additional risks and uncertainties are described in AHT's public filings with the Securities and Exchange Commission. -0-
AHT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts and per share data)
(Unaudited)
For the Three For the Nine
Months Ended Months Ended
Sept. 30, Sept 30, Sept. 30,
1999 1998 1999 1998
------ ------ ------ ------
REVENUE $ 213 $ 303 $ 601 3,527
COST OF REVENUES 385 304 876 1,199
------ ------ ------ ------
Gross profit (172) (1) (275) 2,328
OPERATING EXPENSES 2,713 3,429 10,518 11,075
------ ------ ------- ------
Operating income (loss) (2,885) (3,430) (10,793) (8,747)
OTHER INCOME, Net 172 222 689 1,787
------ ------ ------- ------
Net income (loss)
before taxes (2,713) (3,208) (10,104) (6,960)
INCOME TAX PROVISION 70 2 (16) 4,708
------ ------ ------- -------
Net income (loss) from
continuing operations (2,783) (3,210) (10,088) (11,668)
DISCONTINUED OPERATIONS:
Income (loss)
from discontinued
operations, net 22 (12,784) 1,010 (18,271)
Net income (loss) $(2,761 $(15,994) $(9,078) (29,939)
======= ======= ====== ======
PER SHARE
INFORMATION
Basic net income
(loss) per share:
Income (loss) from
continuing operations ($0.26) ($0.32) ($0.95) ($1.16)
Income from discontinued $0.00 ($1.27) $0.09 ($1.83)
operations ------ ------ ------ ------
Basic net income (loss)
income per share ($0.26) ($1.59) ($0.86) ($2.99)
====== ====== ====== ======
Diluted net income
(loss) per share:
Income (loss) from
continuing operations ($0.26) ($0.32) ($0.95) ($1.16)
Income from discontinued
operations $0.00 ($1.27) $0.09 ($1.83)
------ ------ ------ ------
Diluted net
income/(loss) per share ($0.26) ($1.59) ($0.86) ($2.99)
====== ====== ====== ======
Common shares used in
computing per share amounts:
Basic 10,701 10,062 10,576 10,001
Diluted 10,701 10,062 10,576 10,001
AHT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In thousands)
(unaudited)
September 30,
1999
ASSETS
Cash, cash equivalents, restricted cash and investments $4,222
in marketable securities (1) 149
Accounts receivable, net 545
Other current assets 167
Net current assets from discontinued operations ---
Total current assets $5,083
Property and equipment, net 2,168
Intangible assets, net 4,293
Investments in affiliates 14,000
Restricted cash (1) 1,727
Other assets 1,937
Other assets from discontinued operations 775
Total assets $29,983
(1) Total cash: $5,949 =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable, accrued expenses
and other current liabilities $3,181
Other current liabilities from discontinued operations 2,189
Deferred revenue 643
Net liabilities from discontinued operations --------
Total shareholders' equity 23,970
--------
Total liabilities and shareholders' equity $29,983
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