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HBO & COMPANY ANNOUNCES FOURTH QUARTER AND YEAR-END 1991 RESULTS

 HBO & COMPANY ANNOUNCES FOURTH QUARTER AND YEAR-END 1991 RESULTS
 ATLANTA, Jan. 29 /PRNewswire/ -- HBO & Company (NASDAQ: HBOC) today reported the financial results for its fourth quarter and year ended Dec. 31.
 The company continued its sequential quarterly growth since its cost reduction activity in the second quarter of 1991. Additionally, the company was able to provide strong cash flow reducing long-term debt by half to $20.0 million during 1991. (The financial results below include the company's equipment maintenance business sold earlier this year as discontinued operations. Prior period results have been restated to present continuing operations and discontinued operations separately.)
 Revenue from continuing operations in the fourth quarter of 1991 was $50.2 million, a 16 percent increase over the prior quarter. Operating expenses from continuing operations were $43.7 million, 10 percent higher than third quarter 1991, primarily due to higher levels of system sales and installations in the fourth quarter. Income from continuing operations for the quarter totaled $4.0 million, compared to the $2.1 million reported for the third quarter, and earnings per share were $.27 compared to $.15 last quarter. Charles W. McCall, chief executive officer, reported that, "Our results reflect both the increased levels of business as well as the effectiveness of our previously instituted cost control programs."
 In comparison to the fourth quarter of 1990, the strongest revenue quarter in the company's history, fourth quarter 1991 revenues for continuing operations were down 15 percent, but expenses also decreased by 15 percent. Income and earnings per share from continuing operations were $1.6 million lower and $.13 less, respectively.
 Total year operating results were significantly affected by the $10.9 million nonrecurring charge in the second quarter of 1991. HBO's revenue from continuing operations for 1991 was $170.7 million, slightly lower than 1990; and related operating expenses before the nonrecurring charge totaled $162.9 million, essentially unchanged from the prior year. The 1991 net loss per share from continuing operations totaled $.21, consisting of a $.52 loss per share related to the nonrecurring charge and $.31 earnings per share before the nonrecurring charge. Earnings per share from continuing operations for 1990 totaled $.54.
 McCall commented that: "We are are very pleased to finish the year on such solid footing. Despite early slowness, we finished the year with very strong sales momentum. During 1991 we signed up 28 new hospital customers for our minicomputer STAR, decision support and local area network systems, including 13 hospitals in one multi-state system. HealthQuest signed three new accounts for its mainframe software products. Additionally, we sold five of our new executive information systems, Quantum. We enter 1992 with healthy backlogs of uninstalled systems in both HBO & Company of Georgia and HealthQuest."
 McCall also reported that: "Our most important achievement, however, occurred just after year-end when we completed the first full conversion of our STAR products software to UNIX-based Data General RISC (Reduced Instruction Set Computer) hardware. This is a significant step for HBO in our commitment to an open architecture strategy. Other UNIX-based installations, utilizing both DG and Hewlett-Packard RISC hardware platforms, are underway and more are scheduled to follow."
 HBO & Company delivers a wide range of patient care, clinical and financial products, as well as networking technologies, facilities management and other services to healthcare organizations in the United States, United Kingdom and Canada.
 The following results are unaudited:
 HBO & COMPANY AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (000s omitted, except for per-share data)
 3 mos. ended 12 mos. ended
 12/31/91 12/31/90 12/31/91 12/31/90
 Revenue $50,242 $59,379 $170,725 $174,102
 Operating expenses:
 Cost of operations 26,668 31,903 97,562 97,638
 Marketing 5,270 5,693 19,760 18,058
 Research & development 5,007 5,013 19,151 18,794
 General & administrative 6,735 7,851 26,459 27,211
 Nonrecurring charge --- 731 10,883 731
 Total operating expenses 43,680 51,191 173,815 162,432
 Operating income (loss) 6,562 8,188 (3,090) 11,670
 Interest expense, net 508 113 1,235 85
 Income (loss) from cont. opers.
 before provision (credit)
 for income taxes 6,054 8,075 (4,325) 11,585
 Provision (credit) for
 income taxes 2,059 2,525 (1,470) 3,797
 Income (loss) from cont.
 operations 3,995 5,550 (2,855) 7,788
 Income (loss) from discont.
 operations (4) (986) (544) (648)
 Net income (loss) $ 3,991 $ 4,564 $ (3,399) $ 7,140
 Earnings (loss) per share:
 Primary:
 Continuing operations $ 0.28 $ 0.40 $ (0.21) $ 0.54
 Discont. operations 0.00 (0.07) (0.04) (0.04)
 Total $ 0.28 $ 0.33 $ (0.25) $ 0.50
 Fully diluted:
 Continuing operations $ 0.27 $ 0.40 $ (0.21) $ 0.54
 Discont. operations 0.00 (0.07) (0.04) (0.04)
 Total $ 0.27 $ 0.33 $ (0.25) $ 0.50
 Weighted average shares outstanding:
 Primary 14,420 13,651 13,832 14,370
 Fully diluted 14,696 13,673 13,832 14,370
 -0- 1/29/92
 /CONTACT: Jeanne N. Bateman, investor relations of HBO & Co., 404-393-6577/
 (HBOC) CO: HBO & Company ST: Georgia IN: CPR SU: ERN


BR-BN -- AT017 -- 4933 01/29/92 17:01 EST
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Date:Jan 29, 1992
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