Health Systems Design Corporation Reports First Quarter Results.OAKLAND Oakland, city (1990 pop. 372,242), seat of Alameda co., W Calif., on the eastern side of San Francisco Bay; inc. 1852. Together with San Francisco and San Jose, the city comprises the fourth largest metropolitan area in the United States. , Calif.--(BW HealthWire)--Feb. 4, 1997--Health Systems Design Corporation (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 :HSDC HSDC High Speed Digital Chart
HSDC High-Speed Data Card
HSDC High Speed Daughter Card ) today reported net revenue of $3,323,000 for the fiscal first quarter ended December December: see month. 31, 1996, an increase of 47 percent over the year earlier period.
Results included a net loss of ($1,090,000) or ($0.17) per share for the quarter, compared to a net loss of ($285,000) or ($0.06) per share for the year earlier period. There were a larger number of average shares outstanding in the recent quarter, 6,436,000, as compared to 4,777,000 in the year earlier period.
Gross margins for the quarter were 60 percent, compared to 69 percent for the year earlier period. The Company said the margin decrease was due primarily to a greater proportion of revenues from hardware and third-party software revenues than in the past.
In a press release and conference call with analysts last week, the Company said the first quarter's results were adversely affected by anticipated softness in the market and prolonged pro·long
tr.v. pro·longed, pro·long·ing, pro·longs
1. To lengthen in duration; protract.
2. To lengthen in extent. negotiations for a major contract with Blue Cross and Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. of North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures
Area, 52,586 sq mi (136,198 sq km). Pop. . However, the Company announced simultaneously that the delayed, multi-million dollar Diamond Client/Server An architecture in which the user's PC (the client) is the requesting machine and the server is the supplying machine, both of which are connected via a local area network (LAN) or wide area network (WAN). contract had just been finalized See finalization. , representing the Company's largest contract to date. Health Systems Design also told analysts that Blue Cross and Blue Shield of Florida Blue Cross and Blue Shield of Florida is Florida's largest health insurance provider and plan administrator. The company is a member of Blue Cross and Blue Shield Association. The nonprofit, Jacksonville-based Blue Cross and its subsidiaries serve more than 8. , the Company's flagship account, had awarded the Company a significant contract to expand existing business. These contracts, along with an additional four contracts for new business and another to expand existing business, have increased backlog Backlog
The total value of sales orders waiting to be fulfilled.
This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. to a record high.
Health Systems Design, headquartered in Oakland, is a leading provider of core managed care information systems to payors and providers of health care services. HSD's Diamond systems enable companies to manage financial risk and operate their businesses in the complex administrative environment of managed care. The Company was founded in 1988, and trades on the Nasdaq over-the-counter market over-the-counter market
Trading in stocks and bonds that does not take place on stock exchanges. Such trading occurs most often in the U.S., where requirements for listing stocks on the exchanges are strict. (HSDC).
Health Systems Design Corporation "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. " Statement under 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: The statements contained in this release which are not historical facts are forward-looking for·ward-look·ing
Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan.
Adj. 1. and are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by 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. .
Risks and uncertainties include the Company's dependence upon a single product line; market acceptance, implementation and support of Diamond Client/Server; variability of operating results; length of sales cycles; product development and enhancement; dependence of the Company's results; length of sales cycles; product development and enhancement; dependence of the Company's results of operations on its relationship with Shared Medical Systems; the Company's ability to effectively manage its growth; the Company's dependence on key personnel and its ability to attract and retain qualified personnel; intense competition; the Company's dependence on the managed care industry; the Company's proprietary rights; the Company's recent losses, including accumulated ac·cu·mu·late
v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates
To gather or pile up; amass. See Synonyms at gather.
To mount up; increase. deficit and stockholder's deficit' risk of acquisitions; product liability; possible volatility of the Company's stock price; and other risks described in the Company's Securities and Exchange Commission filings. Please refer to the Company's 10K filing with the Securities and Exchange Commission for a detailed discussion of the above risk factors. -0-
HEALTH SYSTEMS DESIGN CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Three months ended Dec. 31, 1996 1995 Revenues: System sales $ 2,858 $ 1,912 Services and other 465 343 -------- -------- Total revenues 3,323 2,255 Cost of revenues: 1,336 704 -------- -------- Gross margin 1,987 1,551 -------- -------- Operating expenses: General and administrative 1,334 665 Sales and marketing 1,070 419 Product development 857 690 -------- -------- Total operating expenses 3,261 1,774 -------- -------- Loss from operations (1,274) (223) Interest income (expense) 184 (62) -------- -------- Loss before provision for income taxes (1,090) (285) Provision for income taxes -- -- -------- -------- Net loss $ (1,090) $ (285) Net loss per share $ (0.17) $ (0.06) --------- -------- Weighted average shares outstanding 6,436 4,777 HEALTH SYSTEMS DESIGN CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands) ASSETS Dec. 31, Sept. 30, 1996 1996 ----------- ---------- (unaudited) Current assets: Cash, cash equivalents $ 14,827 $ 15,254 Accounts receivable, net 3,138 3,662 Unbilled revenue 1,909 1,469 Prepaids 443 428 ----------- ---------- Total current assets 20,317 20,813 ----------- ---------- Property and equipment, net 2,649 2,555 Deposits and other assets 119 83 Software development costs, net 402 306 ----------- ----------- Total assets $ 23,487 $ 23,757 ----------- ----------- LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 1,497 $ 1,440 Unearned revenue 1,945 1,202 Short term debt 2 3 ----------- ---------- Total current liabilities 3,444 2,645 Long term debt -- -- ----------- ---------- Total liabilities 3,444 2,645 ----------- ---------- Total stockholders' equity 20,043 21,112 ----------- ---------- Total liabilities and stockholders' equity $ 23,487 $ 23,757 ----------- ----------
CONTACT: Health Systems Design Corp.
Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000.
Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a Malone, 510/763-2629 (Chief Financial Officer)
Andrew Carothers Ca·roth·ers , Wallace Hume 1896-1937.
American chemist who developed the synthetic material nylon, which was patented in 1937.
Noun 1. , 510/763-2629 (Communications Manager)