Health Systems Design Reports First- Quarter 2000 Results.Business Editors
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.--(BUSINESS WIRE)--Feb. 10, 2000
Health Systems Design Corp. (Nasdaq:HSDC HSDC High Speed Digital Chart
HSDC High-Speed Data Card
HSDC High Speed Daughter Card ) today reported results for its first fiscal quarter ended Dec. 31, 1999.
Revenues for the quarter totaled $5.2 million. This is down 4 percent from the same period last year, when the company reported revenues totaling $5.4 million. The net loss for the quarter was $1.8 million, or 27 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. , compared with a net loss of $1.4 million, or 21 cents per share, reported in the corresponding period a year ago.
&uot;This quarter was disappointing. It reflects the impact of the previously announced slowdown For articles with similar titles, see Slow Down (disambiguation).
A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in our bookings over the past several quarters related to Y2K See Y2K problem and Y2K compliant.
Y2K - Year 2000 concerns and the difficulties facing many health insurers, HMOs, physician groups and other potential customers,&uot; said Arthur Arthur, king of Britain: see Arthurian legend.
king and hero of Scotland, Wales, and England. [Arthurian Legend: Parrinder, 28]
See : Heroism M. Southam, M.D., president and chief executive officer of Health Systems Design.
&uot;Results for the quarter reflect a drop in license revenues as some major projects were completed, along with our continued investment in product development and marketing. Looking ahead, we remain optimistic op·ti·mist
1. One who usually expects a favorable outcome.
2. A believer in philosophical optimism.
op due to the high level of evaluation interest on the part of many health plans.&uot;
There were a number of key installations and developments during the quarter that demonstrate the strength of the company's DIAMOND(R) systems:
-- The company's DIAMOND 950 system went live for Kaiser Health Plans' Mid-Atlantic Region, serving more than 550,000 members, and HSD is working to extend the DIAMOND solution to additional Kaiser markets. -- Health Alliance Plan, located in Detroit, continues to demonstrate high levels of performance with large membership volumes. Particularly significant has been its demonstration of high-volume auto-adjudication of electronic claims using the DIAMOND system. At a time when many health insurers are processing less than 10 percent of commercial claims electronically, HAP, using the DIAMOND system, is automatically adjudicating more than 70 percent of incoming claims. This performance translates directly into cost savings and service improvements. -- The company also went live during the quarter at Health Plan of Michigan, a 20,000-member plan, with a DIAMOND 725 system implementation, completed in a record two months. -- During the quarter, Health Systems Design completed large-scale performance testing of DIAMOND 950. In collaboration with Oracle and IBM, the testing demonstrated the ability of the DIAMOND 950 Client Server to handle high volumes of online and batch transactions for a simulated health plan with more than 5 million members. &uot;Because many of our potential clients are evaluating significant mergers and consolidation, the demonstration of this level of performance supports the ability of DIAMOND to be the core system of the largest health plans,&uot; Southam said.
The company noted that Blue Shield of California Blue Shield of California is a not-for-profit health insurance provider headquartered in San Francisco, California. An independent licensee of the Blue Cross and Blue Shield Association, Blue Shield of California is an incorporated, wholly owned subsidiary of California Physicians' , a major DIAMOND customer, announced during the quarter a number of significant management changes and the decision to &uot;pause&uot; most of its major information-technology initiatives, of which DIAMOND is one part. This has slowed the project while Blue Shield of California recruits a new chief information officer and reviews its technology plan.
&uot;We are optimistic that we will continue to work with Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. after they identify a new CIO CIO: see American Federation of Labor and Congress of Industrial Organizations.
(Chief Information Officer) The executive officer in charge of information processing in an organization. and finish their evaluation,&uot; Southam added.
&uot;We believe that the most important achievement of the quarter involves our work to evolve our business model. We are moving quickly to adapt our architecture and develop a broader suite of technology solutions that takes full advantage of the Internet Internet
Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the to reduce costs and improve service.
&uot;We are actively engaged in discussions with several organizations to deploy DIAMOND through an ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). model. Consistent with this objective, we have just signed an agreement with Covation (a joint venture of Andersen Consulting See Accenture. and Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. ) to market ASP services to health plans and other payor payor (payer) n. The one who must make payment on a promissory note. organizations.&uot;
Consistent with this strategy, as announced previously, Health Systems Design has engaged Robertson Rob·ert·son , Oscar Palmer Born 1938.
American basketball player. As a guard for the Cincinnati Royals, he became in 1962 the only player in National Basketball Association history to average in double figures in scoring, rebounding, and assists. Stephens Ste·phens , Alexander Hamilton 1812-1883.
American politician who was vice president of the Confederacy (1861-1865) under Jefferson Davis. to evaluate various potential merger, acquisition and business opportunities that would complement the capabilities and assets of the company.
The company is focused on opportunities that would provide current and future customers with a broader set of Internet, ASP and other technology solutions to supplement the functionality and transactional capabilities of DIAMOND products.
Southam concluded: &uot;Health Systems Design believes that the evolution of the Internet, the Internet, the, international computer network linking together thousands of individual networks at military and government agencies, educational institutions, nonprofit organizations, industrial and financial corporations of all sizes, and commercial enterprises potential to automate To turn a set of manual steps into an operation that goes by itself. See automation. many health-care administrative transactions, competitive pressures and regulatory forces, including 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, ), will drive technology investments in our sector.
&uot;We strongly believe that an alignment Alignment is the adjustment of an object in relation with other objects, or a static orientation of some object or set of objects in relation to others.
Health Systems Design, with headquarters in Oakland, is a leading provider of information-systems solutions for organizations that administer health benefits. The company's DIAMOND systems manage large and complex databases and the high-volume, complex transactions associated with the administration of health benefits and provider payments.
The company's systems and services allow clients to control costs and improve the service they provide to their members. The company's 119 clients include health insurers, HMOs, PPOs, third-party administrators and provider organizations that serve more than 15 million enrollees. Customers include health insurers, health- maintenance organizations (HMOs), preferred-provider organizations (PPOs) and health-care provider organizations.
Health Systems Design was founded in 1988 and has traded on the Nasdaq National Market since its initial public offering in 1996.
HSDC &uot;safe-harbor&uot; 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 that are not historical fact 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. Risks and uncertainties include the company's dependence upon a single product line; the dynamic nature of the market in which the company's product line competes; continued market acceptance of the company's products; development of new products and enhancements of the current product; dependence of the company's results of operations on certain large customers; the company's ability to attract and retain qualified personnel; intense competition; and other risks described in the company's Securities and Exchange Commission filings.
HEALTH SYSTEMS DESIGN CORP. Consolidated Condensed Statements of Operations (In thousands, except per-share amounts) (Unaudited) Three months ended Dec. 31, 1999 1998 Revenues: System sales $ 3,888 $ 4,454 Services and other 1,282 927 Total revenues 5,170 5,381 Cost of revenues 2,742 2,203 Gross margin 2,428 3,178 Operating expenses: General and administrative 1,489 1,470 Sales and marketing 861 1,193 Product development 1,936 2,052 Total operating expenses 4,286 4,715 Loss from operations (1,858) (1,537) Interest, net 81 112 Loss before provision for income taxes (1,777) (1,425) Provision for income taxes 14 1 Net loss $(1,791) $(1,426) Net loss per share: Basic $ (0.27) $ (0.21) Diluted $ (0.27) $ (0.21) Weighted average shares outstanding: Basic 6,734 6,678 Diluted 6,734 6,678 HEALTH SYSTEMS DESIGN CORP. Consolidated Condensed Balance Sheets (In thousands) Dec. 31, Sept. 30, 1999 1999 (Unaudited) Assets: Current assets: Cash and cash equivalents $ 7,824 $ 9,205 Accounts receivable, net 6,839 4,440 Unbilled revenue 2,870 6,007 Prepaids 327 272 Total current assets 17,860 19,924 Property and equipment, net 2,829 2,907 Deposits and other assets 446 623 Software development costs, net 3,279 3,330 Total assets $24,414 $26,784 Liabilities and stockholders' equity: Current liabilities: Accounts payable and accrued liabilities $ 4,073 $ 4,359 Current portion of capital lease obligations 301 294 Unearned revenue 4,428 4,700 Total current liabilities 8,802 9,353 Capital lease obligations, net of current portion 183 262 Other long-term liabilities 59 21 Total stockholders' equity 15,370 17,148 Total liabilities and stockholders' equity $24,414 $26,784