Creative Computer Applications Inc. Reports Sales and Operating Results for Its Third Fiscal Quarter and Nine Months Ended May 31, 2001.Business Editors CALABASAS, Calif.--(BUSINESS WIRE)--July 11, 2001 Creative Computer Applications Inc., or CCA (1) (Common Cryptographic Architecture) Cryptography software from IBM for MVS and DOS applications. (2) (Compatible Communications A (AMEX AMEX See: American Stock Exchange :CAP), a provider of Clinical Information Systems (CIS Cis (sĭs), same as Kish (1.) (1) (CompuServe Information Service) See CompuServe. (2) (Card Information S ) for hospital and clinic-based laboratories, pharmacies and radiology departments, today reported sales and net income from operations for its third fiscal quarter and nine months ended May 31, 2001. Sales for the third fiscal quarter increased to $1,626,821, compared with $1,309,368 for the same quarter one year ago. The company earned net income of $33,225, or 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 of 1 cent, compared with a net loss of $463,591, or a basic and diluted net loss per share of 15 cents, for the same quarter one year ago. Sales for the nine-month period ended May 31, 2001 were $4,135,155, compared with sales of $5,876,590 for the same nine-month period one year ago. The company incurred a net loss of $718,727, or a basic and diluted per share loss of 23 cents, compared with a net loss of $296,482, or a basic and diluted net loss per share of 9 cents, for the same period one year ago. Steven M. Besbeck, president and chief executive officer, stated: "CCA's results of operations for its third fiscal quarter were an improvement over recent quarters due to an increased number of CIS sales in the past few months and revenues from such sales recognized in the current quarter. "We believe that the year-over-year decrease in sales has been primarily attributable to an industry-wide slump related to post-Y2K issues, 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, and concerns about pending regulations associated with the Health Insurance Portability and Accountability Act The Health Insurance Portability and Accountability Act (HIPAA) was enacted by the U.S. Congress in 1996. According to the Centers for Medicare and Medicaid Services (CMS) website, Title I of HIPAA protects health insurance coverage for workers and their families when (HIPAA (Health Insurance Portability & Accountability Act of 1996, Public Law 104-191) Also known as the "Kennedy-Kassebaum Act," this U.S. law protects employees' health insurance coverage when they change or lose their jobs (Title I) and provides standards for patient health, ). "CCA's sales and marketing activities have yielded new CIS sales and our pipeline of potential transactions is improving, so we anticipate reporting higher sales in the future. We believe the industry and the market for CIS products will recover but we are cautious about the near term and continue to maintain a tight reign on expenses. "Year-to-date results of operations for the nine-month period were also impacted in part by new revenue recognition policies associated with the adoption of the Securities and Exchange Commission's (SEC) Staff Accounting Bulletin No.101, 'Revenue Recognition in Financial Statements' (SAB 101). CCA elected early adoption of SAB 101 for the current fiscal year beginning Sept. 1, 2000." CCA is a health-care information technology and service provider that provides software and Web-enabled solutions, specializing in Clinical Information Systems (CIS) for hospital and clinic-based laboratories, pharmacies and radiology departments. Its primary products, CyberLAB II(R), CyberMED(R) and CyberRAD(R), are highly functional, scalable and can be deployed in a variety of health-care settings. CCA's systems are deployed in more than 550 sites. For more information about CCA, its products and services, visit http://www.ccainc.com/. This news release contains 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. made in reliance upon 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 are inherently subject to uncertainties and other factors that could cause actual results to differ materially from the forward-looking statement. The company refers interested persons to its most recent Annual and Quarterly Reports on Forms 10-K and 10-Q, respectively, and its other SEC filings for a description of additional uncertainties and factors, that may affect forward-looking statements. |
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