DAOU Systems announces financial results for first quarter ended March 31, 1997.SAN DIEGO--(BW HealthWire)--April 21, 1997--DAOU Systems 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 :DAOU) Monday Monday: see week. reported its first financial results since the firm's initial public offering Feb. 12, 1997. First-quarter revenues for the period ending March 31, 1997, were $5.2 million, an increase of 123 percent over the $2.3 million reported for the first quarter of 1996. The company reported a net loss of $232,000, or 2 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . That compares with a net loss of $163,000, or 2 cents per share, for the same period in 1996. The increase in revenues was primarily attributable to the introduction of the company's information systems outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. services, which the company did not provide in the first quarter of 1996, as well as an increase in network implementation revenues. The increased loss in net income was impacted by increased expenses associated with the regionalization regionalization Managed care The subdivision of a broadly available service–eg, a blood bank, into quasi-autonomous regional centers, capable of making decisions and providing more cost-effective and/or faster service to hospitals and health care facilities, of the company's sales organization, the addition of sales personnel, and the expansion of marketing programs. The company reported total sales and marketing expenses of $1.02 million for the first quarter of 1997, an increase of 209 percent over the $330,000 for the first quarter of 1996. "We are pleased with the progress we've we've Contraction of we have. we've have made in implementing our 1997 corporate growth strategy," said Georges Daou, chief executive officer of DAOU Systems. "In the past 90 days, we've hired several new sales executives and have continued the process of expanding our regional sales offices throughout the country. We believe that our regional sales initiative will help us achieve our objective of capturing a larger share of the health-care information technology market and delivering our network services more efficiently. This, in turn, should assist us in solidifying so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. our platform for future growth." Founded in 1987, DAOU Systems designs, implements, supports and manages computer networks for the health-care industry. The company also offers network analysis, monitoring and management, as well as internet solutions. DAOU has provided network services to more than 350 hospitals and health-care facilities nationwide. With headquarters in San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , the company has five regional offices and 150 employees. -0- Except for the historical information contained herein, the matters discussed in this news release 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. that involve numerous risks and uncertainties. The company's actual results could differ materially from those projected in such forward-looking statements and will depend on a number of factors, including those discussed in this news release and in prior SEC filings, news releases and other public filings of the company. CONTACT: DAOU Systems Inc., San Diego Fred McGee, 619/646-2996 fred.mcgee@daou.com or Craig K. Collins, 619/646-2857 craig.collins@daou.com |
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