Landacorp Posts Second Consecutive Record Quarter.
ATLANTA--(BUSINESS WIRE)--Aug. 3, 2000
Landacorp, Inc. (NASDAQ:LCOR), a leading provider of business-to-business Internet-based and other electronic medical management solutions to health plan and healthcare delivery organizations, today reported record results for the second quarter ended June 30, 2000.
Total revenues for the second quarter of 2000 increased 30% to $3.3 million from revenues of $2.5 million in the corresponding period of 1999. This increase was achieved despite changing the revenue model for health plan sales to a subscription basis this year from a perpetual license fee basis for 1999, which reduces the amount of recognizable revenue in this period compared to 1999. The Company reported a net loss of $1.1 million, or $0.09 per share in the second quarter of 2000, compared with a net loss of $240,000, or $0.20 per share in the corresponding period of 1999. Excluding stock-based compensation and goodwill, the Company reported a net loss of $533,000, or $0.04 per share in the second quarter of 2000. (Note: The consensus estimate of a net loss of $0.06 per share excludes the stock-based compensation and goodwill, and should be compared with the reported net loss of $0.04 per share.) This compares with a net profit of $240,000, or $0.20 per share in the corresponding period of 1999.
Total revenues for the first half of 2000 increased 22% to $5.7 million from revenues of $4.7 million in the corresponding period of 1999. Again, this increase is despite the change made in revenue recognition for health plan sales, as described above. The Company reported a net loss of $3.2 million, or $0.30 per share in the first half of 2000, compared with a net loss of $0.9 million, or $0.81 per share in the corresponding period of 1999. Excluding stock-based compensation, goodwill and a one-time IPO-related bonus payment, the Company reported a net loss of $1.7 million, or $0.16 per share in the first half of 2000. This compares with a net profit of $93,000 or $0.08 per share in the corresponding period of 1999.
Another Record Performance
"Once again I am pleased to report that we have beaten our planned results," said Landacorp President and CEO, Gene Cattarina. "In fact, not only have we exceeded expectations, we equaled analysts' revenue targets and surpassed their consensus earnings per share projections by 33%. We have also posted the best quarter in Landacorp's 18-year history.
"Yet, while our performance was positive and we are progressing according to plan, these achievements continue in the face of adjusting to the new subscription-based health plan revenue model. This is not an easy adjustment and the second half of the year will be challenging," noted Mr. Cattarina. "I do not want to create the expectation that we will continue at this pace. The third and fourth quarters will largely depend on the consummation and timing of significant contracts and other initiatives.
"Among the highlights for the quarter were the signing of the Raritan Bay Medical Center agreement and the announcement of our contract with Blue Cross Blue Shield of North Carolina," added Mr. Cattarina. "These are important clients who reinforce Landacorp's leadership in both the hospital and managed care markets. And we continue to make progress in our strategic alliance with Computer Sciences Corporation (CSC) as we work to bring our products together.
"I'm also pleased to announce that during July, we created our Advanced Products Group, or APG," continued Mr. Cattarina. "Based in Chico, the APG's focus is new product development and alternative delivery modes utilizing emerging technologies and tools. The APG is a critical function that we believe will keep us ahead of the curve, and positioned and extremely competitive in what will undoubtedly continue to be a rapidly evolving healthcare information technology environment.
"The APG's first undertaking is completing the process of evolving our product lines to an entirely web-based solution," said Mr. Cattarina. "This will allow their delivery via an application service provider (ASP) model-- a significant trend and revenue opportunity for us. As one of the pre-eminent developers and providers of medical management solutions with over 160 sites currently using our proven products, we are uniquely positioned to capitalize on this opportunity.
"The APG and this initial project are, of course, not without expense," added Mr. Cattarina. "However, we hope to offset these costs with savings in other areas of the company."
Landacorp: the e-medical management company
Landacorp offers healthcare payers and providers business-to-business Internet-based and other electronic medical management solutions that are designed to control the cost and improve the quality of healthcare delivery. Landacorp's medical management solutions-Maxsys II(TM) for healthcare providers, and maxMC(TM) and e-maxMC (TM) for managed care organizations-automate and streamline administrative and business processes, minimize inefficient paper-, fax-, and phone-based communications, and facilitate interaction among various healthcare participants. The company's products are implemented at more than 160 client sites.
Through its recently acquired iHealthMedia.com(SM) division, Landacorp also provides interactive media strategies, and Internet and extranet site development to help payers and providers better connect with their stakeholders.
Landacorp's corporate headquarters and sales and marketing offices are located in Atlanta, GA. Research and development and client services operations are located in Chico, CA. iHealthMedia.com is located in Portland, OR. Additional sales and service offices are located across the country.
This release contains information about future expectations, plans and prospects of Landacorp's management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, Landacorp's dependence on a limited number of products with limited market acceptance and other factors that are discussed in the Company's Registration Statement on Form S-1 and other documents periodically filed with the SEC.
Landacorp, Inc. In $'000s except per share data Condensed Statement Three months Six months of Operations: ended June 30, ended June 30, 2000 1999 2000 1999 (unaudited) Total revenues 3,263 2,519 5,675 4,651 Costs and expenses: Cost of revenues 1,239 869 2,471 1,773 Sales and marketing 1,643 752 3,326 1,504 Research and development 814 381 1,491 771 General and administrative 1,188 784 2,325 1,556 Total costs and expenses: 4,884 2,786 9,613 5,604 Loss from operations: (1,621) (3,938) (3,938) (953) Interest and other income 512 27 783 49 Interest expense: (17) -- (25) -- Net loss: (1,126) (240) (3,180) (904) Net loss per share: Basic and diluted (0.09) (0.20) (0.30) (0.81) Adjusted net (loss)/profit: (533) 240 (1,679) 93 Adjusted net (loss)/profit per share: Basic (0.04) 0.20 (0.16) 0.08
Adjusted net loss and Adjusted net loss per share excludes stock compensation, goodwill amortization arising from the purchase of iHealthMedia.com and a one-time IPO-related bonus payment to an officer. Adjusted net loss and Adjusted net loss per share are not standard accounting terms or ratios as defined by GAAP and should not be used instead of the, or as the preferred, standard Net loss and Net loss per share calculations to evaluate our company's performance.
The total number of shares used for the calculations of net loss per share are as follows:
Thousands of shares in issue Weighted average shares: Three months Six months ended June 30, ended June 30, 2000 1999 2000 1999 (unaudited) Basic and diluted shares in issue 12,867 1,176 10,480 1,113 Landacorp, Inc. In $'000s (unaudited) Condensed Balance Sheet: Jun. 30 Dec. 31 Assets: 2000 1999 Current assets: Cash and cash equivalents 32,776 1,884 Accounts receivable and costs and estimated earnings in excess of billings on uncompleted contracts, net 2,935 2,090 Other current assets 369 164 Total current assets 36,080 4,138 Property and equipment, net 1,477 1,057 Intangible assets, net 1,026 -- Capitalized software, net 47 61 Deferred offering costs -- 595 Other assets 13 8 Total assets 38,643 5,859 Liabilities: Current liabilities: Accounts payable 411 463 Accrued expenses 1,712 1,804 Deferred revenue and billings in excess of costs and estimated earnings on uncompleted contracts 2,563 2,637 Current portion of long-term debt 258 277 Total current liabilities 4,944 5,181 Long-term debt, net of current portion 157 164 Current liabilities and long-term debt 5,101 5,345 Stockholders' equity: Preferred Stock, $0.001 par value, aggregate liquidation amount $8,160,000 at December 31, 1999; 8,000,000 shares authorized; 6,800,000 shares issued and outstanding at December 31, 1999; none at June 30, 2000 -- 7 Common Stock, $0.001 par value, 15,000,000 shares authorized; 2,610,000 and 13,702,000 shares issued and outstanding 14 3 Additional paid-in capital 52,604 16,955 Notes receivable from officers (187) (189) Unearned stock-based compensation (2,091) (2,645) Accumulated deficit (16,798) (13,617) Total stockholders' equity 33,542 514 Total liabilities 38,643 5,859
Browse the Landacorp web-site at http://www.landacorp.com.
Landacorp, iHealthMedia.com, Maxsys II, maxMC, and e-maxMC and their associated logos are Trademarks, registered trademarks, or service marks of Landacorp, Inc.