Access Health Reports Earnings Up Four-Fold Over Prior Year.RANCHO CORDOVA Rancho Cordova (răn`chō kôrdō`və), uninc. residential city (1990 pop. 48,731), Sacramento co., N Calif. A suburb of Sacramento, it experienced rapid growth in the late 20th cent. , Calif.--(BUSINESS WIRE)--Nov. 7, 1996--Access Health, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ACCS ACCS Air Command and Control System (NATO) ACCS Advanced Cisco Campus Switching ACCS Association of Copyright for Computer Software ACCS Air Command & Control System ACCS Airborne Command & Control Squadron ) reported record earnings and revenues for the fourth quarter and fiscal year ended September 30, 1996. The company reported earnings of $2.5 million, or 18 cents a share on revenues of $18 million for the fourth quarter, compared to earnings of $1.1 million, or 10 cents a share on revenues of $10.6 million for the same period a year ago. Per share amounts have been adjusted to reflect the company's 3 for 2 stock split effective February 29, 1996. For the year ended September 30, 1996, Access Health reported net income of $8.1 million, or 61 cents a share on revenues of $62 million, compared to net income of $1.5 million or 14 cents a share, on revenues of $31.6 million in 1995. "We are very pleased with our fourth quarter and fiscal year results," Chief Executive Officer Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs E. Gardner said. "Our financial results and continued growth reflect the growing demand for personal health management services and the strength of Access Health's strategies and product offerings." Access Health began its 1997 fiscal year with 11.4 million members enrolled in its Personal Health Advisor(R) service, as compared to 5 million members at the beginning of fiscal year 1996. During the fourth quarter, Access Health announced its planned acquisition of Informed Access Systems of Broomfield, Colo. The acquisition, which is subject to shareholder approval, is expected to close by late November. "This merger will broaden our product line and strengthen our medical management capabilities," Gardner noted. "By joining forces with IAS See iPlanet Application Server. 1. (computer) IAS - The first modern computer. It had main registers, processing circuits, information paths within the central processing unit, and used Von Neumann's fetch-execute cycle. , we will have the opportunity to blend the strengths of each company, resulting in more choice and flexibility for our customers." Gardner added that the merger, which will increase total enrollment to 16 million members, is expected to be accretive to fiscal year 1997 earnings. Also during the fourth quarter, Access Health announced new contracts with Medigap Med·i·gap n. Private health insurance designed to supplement the coverage provided under governmental programs such as Medicare. medigap of New Jersey, Inc., the HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, subsidiary of Blue Cross Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. of New Jersey; Prime Advantage Health Plan and CommunityCare HMO Senior Health Plan, both of Oklahoma; and Blue Cross Blue Shield of Florida. Additionally, the company announced an expanded contract with Blue Cross of California. Last week, the company announced that it had been informed by the Director's Office of the Federal Employees Program (FEP See front end processor. ) of the Blue Cross Blue Shield Association of its intent to contract with Access Health for personal health management services on a pilot basis in selected locations, beginning in 1997. Depending on the results of the pilot, the contract may be extended to cover enrollees in the Federal Employees Program on a nationwide basis. The Federal Employees Program covers approximately 3.6 million people. Access Health is the leading provider of membership-based personal health management services designed to help health plans, HMOs, self-insured employers and hospital-based delivery systems improve quality of care, reduce costs and improve member satisfaction. The company's flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. , Personal Health Advisor(R), is a membership-based personal health management service that provides consumers with immediate access to a broad range of health information and counseling services. Members can receive information 24 hours a day, seven days a week via the telephone, the Internet, printed materials and cable TV through its partnership with America's Health Network. Access Health is headquartered at 11020 White Rock Road, Rancho Cordova, Calif., 95670. The phone number is 916/851-4000, the fax number is 916/852-3890 and the corporate World Wide Web address is http://www.access-health.com. Certain statements contained in this release, including information related to the company's continued growth, demand for the company's services, strength of the company's strategies and products, impact of recently announced contracts and the completion of the IAS merger and its accretive nature, 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. and therefore 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. Actual results may differ and such differences may be material. These statements involve risks and uncertainties, including the ability to obtain shareholder approval and satisfy closing conditions for the IAS merger, successful integration of IAS's operations, timing and the ability to achieve operating synergies for the combined company, continued success of the company's products and services, and continued growth of the market, including the ability to secure additional contracts and expand and retain existing contracts. These risks are detailed in the Company's Form 10K/A K/A Knowledge and Abilities filed for fiscal year 1995, the reports filed on Form 10-Q Form 10-Q See 10-Q. for the first, second and third quarters of fiscal year 1996 and the Proxy Statements Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. for the special stockholders meeting to approve the IAS merger. -0-
Access Health Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Year Ended
Sept. 30, Sept. 30,
1995 1996 1995 1996
Revenues:
Personal health management
services.................. $ 7,849 $ 15,570 $ 20,207 $ 52,026
Health systems services... 2,750 2,406 11,346 10,047
Total revenues.......... 10,599 17,976 31,553 62,073
Costs and expenses:
Cost of revenues:
Personal health management
services................ 4,212 7,543 13,214 26,349
Health systems services.. 2,094 1,373 7,498 6,773
Product and other
development............. 454 1,473 1,708 3,841
Sales and marketing...... 1,087 2,098 3,651 6,766
General and
administrative.......... 1,059 1,692 3,456 6,255
Total costs and
expenses.............. 8,906 14,179 29,527 49,984
Income from operations..... 1,693 3,797 2,026 12,089
Other income............... 142 391 570 1,453
Income before income taxes. 1,835 4,188 2,596 13,542
Provision for income taxes. 747 1,676 1,056 5,417
Net income................. $ 1,088 $ 2,512 $ 1,540 $ 8,125
Net income per share....... $ 0.10 $ 0.18 $ 0.14 $ 0.61
Shares used in per share
calculations.............. 11,357 13,843 11,145 13,340
CONTACT: Access Health Jan Emerson, 916/864-4784 (Media Relations) Matt Plavan, 916/851-4012 (Investor Relations Investor relations The process by which the corporation communicates with its investors. ) |
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