MedcomSoft Inc. Reports Record Second Quarter Financial Results.Business Editors TORONTO--(BUSINESS WIRE)--Feb. 28, 2001 Net Income For The 2nd Quarter is $2.4 Million After Investing for the Development of The Electronic Patient Medical Record "EPMR EPMR External Programme and Management Review EPMR Embarked Personnel Material Report EPMR Echo Planar Magnetic Resonance " Product That is Scheduled for Release in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. In Spring 2001 MedcomSoft MedcomSoft TSX: MSF is a leading developer of interoperable software tools for the ambulatory care environment. Its flagship product, MedcomSoft Record 2006, is a comprehensive, integrated software suite that enables physicians to automate the majority of tasks required to Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :MSF MSF Manufacturing, Science, and Finance (Union) .) today announced financial and operating results for its second quarter ended December December: see month. 31, 2000. Revenue for the second quarter increased to $6.8 million compared to $118 thousand for the second quarter last year. For the second quarter the gross margin was $5.7 million or 84% of revenue compared to $109 thousand or 92% of revenue for the second quarter of the prior year. The Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. contract revenue of $6.5 million earned in the second quarter continues to contribute materially to our financial performance. The Australian contract is expected to contribute additional revenue of $4.0 million in third quarter, $1.0 million in the fourth quarter and a final $4.0 million in the first quarter of the 2002 fiscal year. Income from operations in the second quarter grew to $3.8 million compared to a loss of ($485) thousand for the same period last year. The net income after tax in the second quarter grew to $2.4 million or $0.09 per common share, on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, compared to a loss of ($484) thousand or ($0.03) per share, on a fully diluted basis, for the second quarter last year. At December 31, 2000 cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments were $6.2 million compared to $5.6 million at the year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , an increase of $0.6 million. Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying increased to $6.7 million compared to $156 thousand at the year-end. $4.0 million of the accounts receivable were received on February February: see month. 28, 2001 and an additional $2.5 million is expected in April 2001. MedcomSoft continues to have no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and capital lease obligations were $194 thousand compared to $228 thousand at the year-end. For the six month period ended December 31, 2000 the shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. grew to $11.5 million, compared to a shareholders' equity at the year-end of $6.4 million.
Summarized unaudited financial information
($000) 3 Months Ended December 31
2000 1999
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Revenue $6,763 $118
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Gross profit 5,694 109
Total expenses 1,930 594
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Income (loss) from operations 3,764 (485)
Interest income 107 1
Income taxes 1,519 -
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Net income (loss) for the period $2,352 ($484)
---------------------------
---------------------------
Basic earnings (loss) per share $0.10 ($0.03)
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---------------------------
Average number of shares
outstanding 22,710,675 17,915,005
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---------------------------
($000) As at
Dec. 31, 2000 June 30, 2000
------------------------------
Current assets $13,136 $6,093
Capital assets 719 390
Goodwill 319 398
Future tax asset - 1,643
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$14,174 $8,524
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------------------------
Current liabilities $2,596 $2,002
Capital lease obligations 81 118
Shareholders' equity 11,497 6,404
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$14,174 $8,524
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------------------------
Highlights for the second quarter During the second quarter MedcomSoft executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. a parallel strategy of additional customization of the software for the Australian contract while simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics enhancing the EPMR software for the planned spring rollout in Canada and the United States The United States and Canada share a unique legal relationship. U.S. law looks northward with a mixture of optimism and cooperation, viewing Canada as an integral part of U.S. economic and environmental policy. market. The Australian software was delivered in December, on time, and is presently being tested by the Australian client. In order to achieve MedcomSoft's plans for the United States penetration The successful unauthorized breach of a security perimeter. See penetration test. the Company continued to add staff in the Research and Development, Sales and Marketing and Finance areas. As a result of the ongoing renegotiation of the Australian contract the flow of funds Flow of funds In the context of municipal bonds, refers to the statement displaying the priorities by which municipal revenue will be applied to the debt. In the context of mutual funds, refers to the movement of money into or out of a mutual funds or between or among generated by the sale of the Australian license are expected to be accelerated as detailed above. As well, MedcomSoft was compensated compensated /com·pen·sat·ed/ (kom´pen-sa?tid) counterbalanced; offset. an additional $2.5 million, for customization work delivered in December 2000. In the second quarter MedcomSoft expensed to cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold $1.0 million for the Australian customization of which $620 thousand was expended ex·pend tr.v. ex·pend·ed, ex·pend·ing, ex·pends 1. To lay out; spend: expending tax revenues on government operations. See Synonyms at spend. 2. in the second quarter and $390 thousand was expended in the first quarter previously and capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. to unbilled un·billed adj. 1. Not having been billed or charged for: unbilled medical charges. 2. Appearing, as in a movie, without being credited: an unbilled walk-on. work in progress at that time. Outlook With the bulk of the work relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Australian contract having been completed MedcomSoft will concentrate its efforts on:
-- Completing the product development of the EPMR software;
-- Completing the validation of the EPMR software in the Canadian
and United States medical community;
-- Developing a distributor network in the United States; and
-- Completing the building of the United States sales and
marketing team
The third and fourth quarter revenue will still be highly dependent on the revenue generated from the Australian contract. The first quarter of the 2002 fiscal year will also be highly dependent on the revenue generated from the Australian contract. While the revenue from the United States penetration is expected to begin, there is expected to be a ramping of this revenue with each successive quarter's revenue showing improvement over the previous quarter. Attached are the Second Quarter Unaudited Financial Statements Notice of Conference Call: Investors, analysts and the media are invited to participate in MedcomSoft Conference call on Thursday Thursday: see week. March 1st a 11:00a.m. Eastern time. To join the conference call dial (416) 641 6704 or toll free 1 800 387 0276 at approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 10:50a.m. The call will be available in postview format for 72 hrs. by dialing 1-800-558-5253, and quoting reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. #18161591 MedcomSoft Inc. is a healthcare efficiency company pioneering the use of Intelligent Data Entry Systems, 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 and wireless technology to improve the collection and dissemination dissemination Medtalk The spread of a pernicious process–eg, CA, acute infection Oncology Metastasis, see there of healthcare information, simplify workflow The automatic routing of documents to the users responsible for working on them. Workflow is concerned with providing the information required to support each step of the business cycle. , improve the delivery and quality of patient care, and decrease costs throughout the healthcare industry. The MedcomSoft(TM) platform was developed to facilitate business transactions and the exchange of clinical information between the different players in the healthcare industry, which include: providers, patients, suppliers, insurers and payers. By leveraging the Internet and wireless infrastructure, MedcomSoft(TM) is capable of rapidly deploying unique Virtual Healthcare Information Networks (VHINs) that will support the capture, the aggregation and the secure communication of Multimedia Electronic Patient Records. MedcomSoft Inc., is headquartered in Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing , Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and has offices in Saratoga Springs, New York "Saratoga Springs" redirects here. For the unrelated Utah city, see Saratoga Springs, Utah. For the resort inspired by this city, see Disney's Saratoga Springs Resort & Spa. Saratoga Springs is a city in Saratoga County, New York, USA. , USA and Sydney Sydney, city, Australia Sydney, city (1991 pop. 3,097,956), capital of New South Wales, SE Australia, surrounding Port Jackson inlet on the Pacific Ocean. Sydney is Australia's largest city, chief port, and main cultural and industrial center. , Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . This news release contains projections and other 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. regarding future events. Such statements are predictions, which involve known and unknown risks, uncertainties and other factors, which may cause the actual events or results to differ materially. The reader is referred to the documents that the company files from time to time with applicable Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. securities and regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities .
MEDCOMSOFT INC.
Consolidated Balance Sheets
(Unaudited)
---------------------------------------------------------------------
---------------------------------------------------------------------
December 31, 2000 June 30, 2000
---------------------------------------------------------------------
Assets
Current
Cash and short term investments $ 6,244,613 $ 5,582,044
Accounts receivable 6,677,544 156,375
Inventory 13,958 18,232
Investment tax credit recoverable - 300,000
Prepaid expenses and other assets 199,824 36,603
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13,135,939 6,093,254
Capital Assets 718,699 389,550
Goodwill 318,839 398,549
Future Income Tax Asset - 1,643,000
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$ 14,173,477 $ 8,524,353
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---------------------------------------------------------------------
Liabilities
Current
Accounts payable and accrued
liabilities $ 503,247 $ 925,370
Income taxes payable 1,212,354 -
Current portion of capital
lease obligations 113,495 109,716
Deferred Income 766,667 966,667
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2,595,763 2,001,753
Capital Lease Obligations 80,824 118,234
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2,676,587 2,119,987
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SHAREHOLDERS' EQUITY
Share capital
Issued and outstanding common shares
are 22,713,799 and 22,559,124 8,171,715 7,976,037
Retained earnings (Deficit) 3,325,175 (1,571,671)
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11,496,890 6,404,366
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$ 14,173,477 $ 8,524,353
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Certain of the comparative figures have been reclassified to
conform to current year's presentation.
MEDCOMSOFT INC.
Consolidated Statements of Operations and Retained Earnings
For the Periods Ended December 31, (Unaudited)
----------------------------------------------------------------
Three Months Six Months
2000 1999 2000 1999
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Revenue $6,763,125 $117,743 $12,971,514 $209,455
Cost of sales 1,068,633 8,364 1,453,356 16,433
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Gross Profit 5,694,492 109,379 11,518,158 193,022
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Expenses
Sales and
marketing 508,783 17,433 948,993 54,815
Research and
development 261,701 24,030 261,701 58,925
General and
admini-
strative 1,056,871 514,254 2,030,137 957,416
Amortization 92,776 31,387 169,580 58,778
Interest
expense 9,948 7,646 20,554 11,877
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1,930,079 594,750 3,430,965 1,141,811
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Income (Loss)
from
Operations 3,764,413 (485,371) 8,087,193 (948,789)
Interest
Income 107,094 1,469 265,007 1,469
--------------------------------------------------------------------
Income (Loss)
for the
Period Before
Income
Taxes 3,871,507 (483,902) 8,352,200 (947,320)
Income Tax
Expense 1,519,354 - 3,455,354 -
--------------------------------------------------------------------
Net Income
(Loss)
for the
Period 2,352,153 (483,902) 4,896,846 (947,320)
Retained
Earnings
(Deficit),
Beginning
of Period 973,022 (4,432,067) (1,571,671) (3,968,649)
--------------------------------------------------------------------
Retained
Earnings
(Deficit),
End of
Period $ 3,325,175 $ (4,915,969) $ 3,325,175 $(4,915,969)
--------------------------------------------------------------------
Net Income
(Loss)
per share
Basic $ 0.10 $ (0.03) $ 0.22 $ (0.05)
Fully diluted $ 0.09 $ (0.03) $ 0.20 $ (0.05)
Weighted
average
number of
shares
outstanding 22,710,675 17,915,005 22,664,82 17,898,919
----------------------------------------------------------------------
----------------------------------------------------------------------
Certain of the comparative figures have been reclassified to
conform to current year's presentation.
MEDCOMSOFT INC.
Consolidated Statements of Cash Flows
For the Periods Ended December 31, (Unaudited)
----------------------------------------------------------------------
Net Inflow (Outflow) of Cash Related to the Following Activities
Three Months Six Months
2000 1999 2000 1999
----------------------------------------------------------------------
Operating
Net income
(loss) for
the period $ 2,352,153 $ (483,902) $ 4,896,846 $(947,320)
Item not
involving cash
Amortization 92,776 31,387 169,580 58,778
Future income
taxes 307,000 - 1,643,000 -
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2,751,929 (452,515) 6,709,426 (888,542)
Net change
in other
working
capital items
(below) (5,153,051) (101,267) (5,789,885) (73,433)
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(2,401,122) (553,782) 919,541 (961,975)
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Investing
Acquisition
of capital
assets (254,524) (6,862) (419,019) (9,952)
-----------------------------------------------------------------
Financing
Common shares
issued net
of financing
costs 26,373 348,508 195,678 348,508
Special
warrants
issued net
of financing
costs - 1,934,592 - 2,227,958
Deferred
financing
costs - (46,131) - (46,131)
Capital lease
obligation (28,071) (14,592) (33,631) (25,548)
-----------------------------------------------------------------
(1,698) 2,222,377 162,047 2,504,787
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Increase
(Decrease) in
Cash Position (2,657,344) 1,661,733 662,569 1,532,860
-----------------------------------------------------------------
Cash and
Short Term
Investments,
Beginning
of Period 8,901,957 45,673 5,582,044 174,546
-----------------------------------------------------------------
Cash and
Short Term
Investments,
End of
Period $6,244,613 $1,707,406 $6,244,613 $1,707,406
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-----------------------------------------------------------------
Supplementary
Information
Interest
paid 9,948 7,109 20,554 11,206
Income tax
paid - - - -
----------------------------------------------------------------
Net change in
other working
capital items
represented
by :
Accounts
receivable $(6,557,154) $(34,666) $(6,521,169) $(21,140)
Inventory 20,296 292 4,274 315
Unbilled
Work in
Process 390,000 - - -
Investment
tax credit
recoverable 59,104 - 300,000 -
Prepaid
expenses
and other
assets (103,359) 41,957 (163,221) 17,296
Accounts
payable and
accrued
liabilities (74,293) (108,850) (422,123) (69,904)
Income taxes
payable 1,212,354 - 1,212,354 -
Deferred
Income (99,999) - (200,000) -
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$(5,153,051) $(101,267) $(5,789,885) $(73,433)
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------------------------------------------------------------------
Certain of the comparative figures have been reclassified to
conform to current year's presentation.
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