APACHE Medical Systems Reports 1999 Q3 Results; Revenues Up 38%.MCLEAN McLean, city (1990 pop. 38,168), Fairfax co., N Va., a suburb of Washington, D.C. Manufacturing includes foods, satellite components, and computer and telecommunications equipment. , Va.--(BUSINESS WIRE)--Oct. 27, 1999-- APACHE Medical Systems, Inc. (Nasdaq:AMSI AMSI Australian Mathematical Sciences Institute AMSI Ambient Surround Imaging AMSI Atlantic Merchant Shipping Instructions AMSI Ameritech Message Signal Interface ), a leading provider of decision support and disease management products and consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" , today reported dramatically improved revenues and profitability for the third quarter and nine months ended September September: see month. 30, 1999. Revenues for the three months ended September 30, 1999 were $3.0 million, up more than 38% from $2.2 million reported for the same period a year ago. Expenses totaled $2.7 million for the quarter, down 29% from the $3.8 million reported in the year ago quarter. This resulted in income from operations of $284,000, compared with last year's third quarter 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 ($1.6 million). Net income for the quarter was $349,000, or $.05 per share, compared with a net loss of ($1.5 million), or ($0.21) per share, for the third quarter of 1998. Cash and short term investments were $6.1 million at September 30, 1999, reflecting the sustained success of efforts to improve the cash management processes of the company. At December December: see month. 31, 1998, the Company's cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments stood at $6.5 million. For the nine months ended September 30, 1999, revenues were $9.9 million, up 25% over revenues of $7.9 million for the nine months ended September 30, 1998. Expenses totaled $8.9 million for the period, down 16% from the $10.6 million reported in the year ago period. This resulted in income from operations of $1.0 million versus a loss from operations of ($2.7 million) in the year ago period. Net income for the nine months was $1.3 million or $0.17 per share compared with a net loss of ($2.3 million) or ($0.32) per share for the year ago period. APACHE's third quarter results again validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data the continued success of the company's turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. . Key metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. such as revenue growth, expense management and increased profitability represent further confirmation of this trend and APACHE's progress. "We are very pleased with APACHE's results, particularly in the context of a challenging healthcare industry environment," commented APACHE President 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. Peter Gladkin. "This trend represents five quarters of growth in revenues and profitability. Expenses remain well-managed and under tight operational control and cash flow is greatly improved." Gladkin added, "The combined effects of the Balanced Budget Balanced budget A budget in which the income equals expenditure. See: budget. balanced budget A budget in which the expenditures incurred during a given period are matched by revenues. Act of 1997 and the Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 issue have had a negative impact upon the healthcare industry. Nevertheless, the efforts of the APACHE team have produced solid operating results for the Company in this difficult market environment." APACHE Medical Systems, Inc., (www.apache-msi.com) is a recognized leader in the delivery of clinical decision support systems, strategic and clinical consulting services for the care of high-risk high-risk adjective Referring to an ↑ risk of suffering from a particular condition Infectious disease Referring to an ↑ risk for exposure to blood-borne pathogens, which occurs with blood bank technicians, dental professionals, dialysis unit , high-cost patients. The Company's products and services enable health systems, hospitals and providers to apply an evidence-based approach to achieve clinical performance excellence, substantially reduce cost, and compete effectively under managed care. Statements in this press release which are not historical facts 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. under 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. All forward-looking statements involve risks and uncertainties. The Company wishes to caution readers that the following important factors, among others, in some cases have affected, and in the future could affect, the Company's actual results and could cause its actual results in fiscal 1999 and beyond to differ materially from those expressed in any forward-looking statements made by, or on behalf of the Company. Important factors that could cause actual results to differ materially include but are not limited to the Company's having sufficient sales and timely collections to meet cash requirements and achieve profitability; ability to attract and retain key employees; success of its strategy to concentrate its product offerings on high-risk, high-cost patients; ability to timely develop new products and enhance existing products; ability to compete in the competitive and rapidly evolving healthcare information technology industry; ability to correctly estimate and manage its Year 2000 costs and liabilities; success of its marketing and consulting efforts and ability to effectively utilize its direct sales force; ability to protect proprietary information and to obtain necessary licenses on commercially reasonable terms; and ability to comply with and adapt products and services to potential 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.
APACHE MEDICAL SYSTEMS, INC.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
Third Quarter Ended Year To Date
September 30, September 30,
1999 1998 1999 1998
----------- ----------- --------- ---------
Revenue: $ 2,972 $ 2,153 $ 9,910 $ 7,903
Expenses:
Cost of systems, support
and services 927 1,081 2,407 2,965
Selling, general and
administrative 1,630 2,308 5,875 6,615
Research and development 131 384 582 1,034
----------- ----------- --------- ---------
Total expenses 2,688 3,773 8,864 10,614
Income (Loss) from
operations 284 (1,620) 1,046 (2,711)
Other income (expense):
Interest income 73 107 248 394
Interest expense (8) (9) (25) (28)
Other, net -- 3 6 3
----------- ----------- --------- ---------
Total other income
(expense) 65 101 229 369
Net Income (Loss) $ 349 $ (1,519) $ 1,275 $(2,342)
=========== =========== ========= =========
Net Income (Loss) per
share $ 0.05 $ (0.21) $ 0.17 $ (0.32)
=========== =========== ========= =========
Weighted average number
of shares used for
calculation of net
income (loss) per share 7,361 7,292 7,350 7,292
=========== =========== ========= =========
Condensed Balance Sheets
(in thousands)
September 30, December 31,
1999 1998
----------- -----------
Assets
Cash and short-term investments 6,092 6,532
Accounts receivable, net 2,371 2,972
Other current assets 609 749
Property, plant and equipment, net 553 885
Capitalized software development costs, net 717 506
Other assets 407 498
----------- -----------
$ 10,749 $ 12,142
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities 5,618 8,134
Long-term debt and capital leases 72 206
Deferred rent 13 62
Stockholders' equity 5,046 3,740
----------- -----------
$ 10,749 $ 12,142
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