CliniCom announces sales and net income for third quarter 1994.

BOULDER, Colo.--(BUSINESS WIRE)--Nov. 2, 1994--CliniCom Inc. (NASDAQ/NMS:CLIN) Wednesday announced an increase in sales, but a decrease in net income for the third quarter of 1994, compared to the same period last year.

In the third quarter of 1994 sales rose to $6,529,962 compared to $5,757,787 during the same quarter last year. Net income was $291,266 or $.03 per share for the third quarter of 1994 compared to $1,032,068 or $.12 per share for the same period in 1993.

For the nine months ended September 30, 1994, net income was $2,466,421 or $.28 per share on sales of $20,138,312 compared to net income of $2,025,923 or $.26 per share on sales of $14,653,086 for the same period in 1993.

"Third quarter earnings were negatively impacted by unanticipated delays in expected sales closures and deliveries for this quarter," said William Brehm, CEO of CliniCom. "As we have emphasized many times, CliniCom is subject to quarterly earnings fluctuations due to the size of our average contract as a percentage of total quarterly revenues. While it is certainly positive that CliniCom's average contract size continues to increase, this presents us with an ongoing potential for earnings fluctuations, especially where contract closures and deliveries are delayed."

Although the company's third quarter results were disappointing, a comparison of the nine months ended September 30, 1993 and 1994 shows positive growth in revenues and earnings for CliniCom. Brehm stated that the company "continues to believe it is well positioned for growth in the future. Our recent introduction of the Coordinated Care software and the CliniView PC terminal were very well received by our clients and potential clients. In addition, our relationship with HBOC has resulted in a total of fifteen (15) sales of the Pathways Care Manager to new and existing HBOC customers. These sales include the Northwest Georgia Health System, Inc. and Mercy Memorial Hospital sales, portions of which were recognized in the third quarter. The company anticipates that revenues from the remainder of these fifteen (15) HBOC sales will be realized over the course of the next 12 months."

Based in Boulder, CliniCom is an industry leader in the design, development and support of information systems for better patient care. The CliniCare System is based on an open systems architecture and is composed of clinical applications software, CliniCom's radio-frequency-based Wireless Interactive Network and a broad range of computer access terminals including graphical workstations and hand-held portable devices. CliniCom currently offers information solutions to the medical/surgical, obstetrical, respiratory, pediatric, critical care and home healthcare areas and is in the process of developing solutions for the ambulatory, emergency and long-term care areas. -0-

                        CLINICOM INCORPORATED
                  CONDENSED STATEMENT OF OPERATIONS
                            (Unaudited)


                  For the Three Months Ended  For the Nine Months Ended
                    Sept. 30,    Sept. 30,      Sept. 30,   Sept. 30,
                      1994         1993           1994        1993
Sales:
  Net system sales  $5,370,162   $5,222,094   $17,472,078  $13,218,867
  Customer support
    services         1,159,800      535,693     2,666,234    1,434,219

  Net sales          6,529,962    5,757,787    20,138,312   14,653,086

Costs and expenses:
  Cost of operations 3,662,956    2,894,534    10,319,867    7,754,706
  Research and
    development        835,731      622,102     2,349,119    1,700,387
  Selling and
    marketing        1,071,194      793,447     3,387,485    1,900,902
  General and
    administrative     809,063      397,060     1,984,243    1,238,793
                     6,378,944    4,707,143    18,040,714   12,594,788

Income from
  operations           151,018    1,050,644     2,097,598    2,058,298

Other income (expense):
  Interest income      162,248       83,473       588,534      151,407
  Interest expense           0         (774)            0      (13,698)
  Other                      0        5,725         2,289       16,916

Net income before
  income taxes         313,266    1,139,068     2,688,421    2,212,923

Provision for
  income taxes          22,000      107,000       222,000      187,000

Net income            $291,266   $1,032,068    $2,466,421   $2,025,923

Net income per
  common share
    Primary              $0.03        $0.12         $0.28        $0.26
    Fully diluted        $0.03        $0.12         $0.28        $0.26

Weighted average common
  shares outstanding
     Primary         8,926,891    8,736,662     8,918,029    7,796,399
     Fully diluted   8,928,428    8,763,823     8,918,757    7,881,417


                        CLINICOM INCORPORATED
                       CONDENSED BALANCE SHEETS
                             (Unaudited)


                                   September 30,    December 31,
                                       1994            1993

Assets:

Current assets
  Cash and cash equivalents        $12,210,462      $15,373,156
  Trade accounts receivable          7,146,394        4,948,016
  Unbilled receivables               5,111,661        2,693,306
  Inventories                        3,965,556        2,316,400
  Prepaid expenses                     190,476          548,358
    Total current assets            28,624,549       25,879,236

Property and equipment, net          2,162,155        1,387,112
Internal software development
  costs, net                         1,016,858          589,012
Purchased software, net              2,273,770                0
Other assets                           178,059          959,666

Total assets                        34,255,391       28,815,026


Liabilities and stockholders' equity:

Current liabilities
  Accounts payable                  $3,099,566       $1,036,102
  Accrued liabilities                2,476,821        2,162,665
Warranty/rework reserve                691,774          545,905
Deferred revenue                     1,776,487        2,833,966
  Total current liabilities          8,044,648        6,578,638

Stockholders' equity
  Common stock                           8,546            8,052
  Additional paid-in capital        42,576,120       41,068,680
  Accumulated deficit              (16,373,923)     (18,840,344)
    Total stockholders' equity      26,210,743       22,236,388

Total liabilities and stockholders'
  equity                            34,255,391       28,815,026

CONTACT: CliniCom Inc., Boulder, Colo.

              Catherine Milburn, 303/443-9660
                           or
              Trinske Communications Ltd., Lafayette, Colo.
              Mark Trinske (investor relations), 303/665-7760