MedcomSoft Inc. Reports Third Quarter Financial Results; MedcomSoft News Release and Report to Shareholders.Business Editors TORONTO--(BUSINESS WIRE)--May 23, 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) .) MedcomSoft(TM) Continues to Maintain Its Cash Reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. While Investing $1.4 Million in the Development of Its Core US Electronic Patient Medical Record EPMR EPMR External Programme and Management Review EPMR Embarked Personnel Material Report EPMR Echo Planar Magnetic Resonance (TM) Software MedcomSoft Inc. (TSE:MSF.) today announced financial and operating results for its third quarter ended March 31, 2001. Highlights for the third quarter During the third quarter MedcomSoft(TM) delivered its software for 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, obtained client acceptance of the Australian product and continued to develop and enhance its clinical healthcare information platform, including its US EPMR(TM) product, which was unveiled on April 4th, 2001. As well, MedcomSoft began deploying its Value Added Reseller See VAR. (company) value added reseller - (VAR, or "value added retailer") A company which sells something (e.g. computers) made by another company (an OEM) with extra components added (e.g. specialist software). (VAR) distribution network in the US.
-- MedcomSoft(TM) has signed agreements with SecureMed Corporation in
Arizona and Western Office Systems in New Mexico. SecureMed
provides fully integrated Microsoft Windows(TM) healthcare
information system solutions for physicians and healthcare
providers. Western Office Systems is a regional reseller of
document and information management solutions for business and
healthcare markets.
-- Most recently, MedcomSoft(TM) signed an agreement with Strategic
Marketing Solutions, Inc. in Florida. Strategic Marketing
Solutions will provide EPMR(TM) as its flagship product for
physicians and healthcare providers throughout the United States.
MedcomSoft(TM) has begun to implement its marketing strategy of
obtaining medical validation of its product by entering into the
following agreements:
-- A pilot test agreement with Johns Hopkins Bayview Medical Center,
Baltimore, Maryland to evaluate and test MedcomSoft's advanced
electronic patient medical record system, EPMR(TM), in connection
with the Center's orthopedic clinic.
-- An agreement with Murfreesboro Medical Center in Tennessee to
implement EPMR(TM) software.
-- An agreement with Sunnybrook and Women's College Health Sciences
Centre, Toronto to evaluate EPMR(TM) software.
MedcomSoft(TM) also entered into discussions with the City of Greater Sudbury Greater Sudbury (2006 census population 157,857) is a city in Northern Ontario, Canada. Greater Sudbury was created in 2001 by amalgamating the cities and towns of the former Regional Municipality of Sudbury, along with several previously unincorporated geographic townships. to create a "Community Health Network" in Northern Ontario Northern Ontario is the part of the province of Ontario which lies north of Lake Huron (including Georgian Bay), the French River and Lake Nipissing. Northern Ontario has a land area of 802,000 km² (310,000 mi²) and constitutes 87% of the land area of Ontario, although it , the first of its kind using MedcomSoft's advanced 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. electronic patient medical record system, Medworks 4.0. MedcomSoft(TM) formed an alliance with Mytec Technologies Inc., a provider of state-of-the-art biometrics The biological identification of a person. Examples are face, iris and retinal patterns, hand geometry and voice. Increasingly built into laptop computers, fingerprint readers have become popular as a secure method for identification. authentication (1) Verifying the integrity of a transmitted message. See message integrity, e-mail authentication and MAC. (2) Verifying the identity of a user logging into a network. solutions. Mytec's biometrics technology will be combined with MedcomSoft's advanced electronic medical record technology and other privacy technologies to provide highly secure access and authentication for physicians, patients and healthcare organizations around the world. To achieve MedcomSoft's(TM) business strategies, MedcomSoft(TM) continued to add staff in the areas of Product Research and Development, and Sales and Marketing, both 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. and in 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 . MedcomSoft(TM) has also continued to provide software support in connection with the Australian contract. The Australian software is now in Beta testing (programming) beta testing - Testing a pre-release (potentially unreliable) version of a piece of software by making it available to selected users. This term derives from early 1960s terminology for product cycle checkpoints, first used at IBM but later standard throughout the with certain medical clinics in 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. . Results of Operations Revenue for the third quarter was $4.2 million compared to $338 thousand for the third quarter last year. For the third quarter the gross margin was $3.6 million or 87% of revenue compared to $193 thousand or 57% of revenue for the third quarter of the prior year. The "Australian contract" continued to contribute materially to MedcomSoft's(TM) financial performance. Income from operations in the third quarter was $582 thousand compared to a loss of ($858) thousand for the same period last year. The net income after tax in the third quarter was $374 thousand or $0.01 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 ($843) thousand or ($0.05) per share for the third quarter last year. At March 31, 2001 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 $6.5 million compared to $5.6 million at the June June: see month. 30, 2000 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 $0.9 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 $6.6 million compared to $156 thousand at the year-end. Over $6.1 million of the $6.5 million accounts receivable due at the quarter end were paid on May 7, 2001. MedcomSoft(TM) 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 $165 thousand compared to $228 thousand at the year-end. For the nine month period ended March 31, 2001 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. was $11.9 million, compared to a shareholders' equity at the year-end of $6.4 million.
Summarized unaudited financial information
-------------------------------------------
---------------------------
($000) 3 Months Ended March 31
---------------------------
2001 2000
---------------------------
Revenue $4,174 $338
---------------------------
Gross profit 3,646 193
Total expenses 3,064 1,051
---------------------------
Income (loss) from operations 582 (858)
Interest income 77 15
Income taxes 285 -
---------------------------
Net income (loss) for the period $374 ($843)
---------------------------
---------------------------
Basic earnings per share $0.02 ($0.05)
---------------------------
---------------------------
Average number of shares outstanding 22,746,797 18,657,253
---------------------------
---------------------------
--------------------------------
($000) As at
--------------------------------
March 31, 2001 June 30, 2000
--------------------------------
Current assets $13,462 $6,093
Capital assets 951 390
Goodwill 279 398
Future tax asset - 1,643
--------------------------------
$14,692 $8,524
--------------------------------
--------------------------------
Current liabilities $2,721 $2,002
Capital lease obligations 60 118
Shareholders' equity 11,911 6,404
--------------------------------
$14,692 $8,524
--------------------------------
--------------------------------
Outlook
The priorities of MedcomSoft(TM) continue to be:
-- Completing and expanding the validation of the EPMR(TM) software
in the United States medical community;
-- Growing its distributor network by certifying the requisite number
of VARs to cover the entire United States;
-- Fully deploying and continuing to build our United States sales
and marketing team in concert with the growth of the distribution
network as well as to directly service selected target customers;
and
-- Entering Strategic Partnerships and Alliances
The fourth quarter and first quarter of the 2002 fiscal year revenue will continue to be highly dependent on the revenue generated from the Australian contract. Thereafter, revenue from the United States penetration The successful unauthorized breach of a security perimeter. See penetration test. should begin to be generated, however there should be a ramping of this revenue with each quarter's revenue showing improvement over the previous quarter. 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 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. 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 MedcomSoft(TM) files from time to time with applicable Canadian 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)
------------------------------------------------------------------
March 31, 2001 June 30, 2000
----------------------------------
Assets
Current
Cash and short term investments $ 6,508,132 $ 5,582,044
Accounts receivable 6,651,851 156,375
Inventory 18,020 18,232
Investment tax credit recoverable - 300,000
Prepaid expenses and other assets 284,566 36,603
------------------------------------------------------------------
13,462,569 6,093,254
Capital Assets 950,711 389,550
Goodwill 278,984 398,549
Future Income Tax Asset - 1,643,000
------------------------------------------------------------------
$ 14,692,264 $ 8,524,353
------------------------------------------------------------------
------------------------------------------------------------------
Liabilities
Current
Accounts payable and accrued
liabilities $ 854,554 $ 925,370
Income taxes payable 1,095,724 -
Current portion of capital
lease obligations 104,341 109,716
Deferred Income 666,668 966,667
------------------------------------------------------------------
2,721,287 2,001,753
Capital Lease Obligations 60,411 118,234
------------------------------------------------------------------
2,781,698 2,119,987
------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Share capital
Issued and outstanding common shares
are 22,775,199 and 22,559,124 8,210,965 7,976,037
Retained earnings (Deficit) 3,699,601 (1,571,671)
------------------------------------------------------------------
11,910,566 6,404,366
------------------------------------------------------------------
$ 14,692,264 $ 8,524,353
------------------------------------------------------------------
------------------------------------------------------------------
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 March 31, (Unaudited)
---------------------------------------------------------------------
Three Months Nine Months
------------------------------------------------
2001 2000 2001 2000
----------- ----------- ----------- ------------
Revenue $ 4,173,673 $ 337,669 $17,145,187 $ 547,124
Cost of sales 527,925 144,963 1,981,281 161,396
---------------------------------------------------------------------
Gross Profit 3,645,748 192,706 15,163,906 385,728
---------------------------------------------------------------------
Expenses
Sales and marketing 622,463 25,230 1,571,456 80,045
Research and
development 1,372,621 40,199 1,634,322 99,124
General and
administrative 950,294 880,716 2,980,431 1,838,132
Amortization 109,308 95,689 278,888 154,467
Interest expense 8,901 9,162 29,455 21,039
---------------------------------------------------------------------
3,063,587 1,050,996 6,494,552 2,192,807
---------------------------------------------------------------------
Income (Loss) from
Operations 582,161 (858,290) 8,669,354 (1,807,079)
Interest Income 76,839 15,300 341,846 16,769
---------------------------------------------------------------------
Income (Loss) for the
Period Before Income
Taxes 659,000 (842,990) 9,011,200 (1,790,310)
Income Tax Expense 284,574 - 3,739,928 -
---------------------------------------------------------------------
Net Income (Loss) for
+++ the Period 374,426 (842,990) 5,271,272 (1,790,310)
Retained Earnings
(Deficit), Beginning
of Period 3,325,176 (4,915,969) (1,571,671) (3,968,649)
---------------------------------------------------------------------
Retained Earnings
(Deficit), End
of Period $3,699,601 $(5,758,959) $3,699,601 $(5,758,959)
---------------------------------------------------------------------
---------------------------------------------------------------------
Net Income (Loss) per share
Basic $ 0.02 $ (0.05) $ 0.23 $ (0.10)
Fully diluted $ 0.01 $ (0.05) $ 0.21 $ (0.10)
---------------------------------------------------------------------
---------------------------------------------------------------------
Weighted average number of
shares outstanding 22,746,797 18,657,253 22,691,747 18,160,290
---------------------------------------------------------------------
---------------------------------------------------------------------
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 March 31, (Unaudited)
---------------------------------------------------------------------
Net Inflow (Outflow) of Cash Related to the Following Activities
Three Months Nine Months
------------------------------------------------
2001 2000 2001 2000
----------- ----------- ----------- ------------
Operating
Net income (loss)
for the period $ 374,426 $ (842,990) $5,271,272 $(1,790,310)
Item not involving cash
Amortization 109,308 95,689 278,888 154,467
Future income taxes - - 1,643,000 -
---------------------------------------------------------------------
483,734 (747,301) 7,193,160 (1,635,843)
Net change in other
working capital
items (below) 71,567 (70,256) (5,718,318) (143,689)
---------------------------------------------------------------------
555,301 (817,557) 1,474,842 (1,779,532)
---------------------------------------------------------------------
Investing
Acquisition of capital
assets (301,465) (53,906) (720,484) (63,858)
---------------------------------------------------------------------
Financing
Common shares issued net
of financing costs 39,250 791,902 234,928 1,140,410
Special warrants and
common shares
subscribed to be issued - (66,069) - 2,161,889
Deferred financing costs - (32,387) - (78,518)
Acquisition costs of BNK
net of assets purchased - 18,015 - 18,015
Capital lease
obligation (29,567) (34,468) (63,198) (60,016)
---------------------------------------------------------------------
9,683 676,993 171,730 3,181,780
---------------------------------------------------------------------
Increase (Decrease) in
Cash Position 263,519 (194,470) 926,088 1,338,390
Cash and Short Term
Investments, Beginning
of Period 6,244,613 1,707,406 5,582,044 174,546
---------------------------------------------------------------------
Cash and Short Term
Investments, End
of Period $ 6,508,132 $ 1,512,936 $ 6,508,132 $ 1,512,936
---------------------------------------------------------------------
---------------------------------------------------------------------
Supplementary Information
Interest paid 8,901 9,833 29,455 21,039
Income tax paid - - - -
---------------------------------------------------------------------
Net change in other
working capital items
represented by :
Accounts receivable $ 25,693 $ (165,514)$(6,495,476) $ (186,644)
Inventory (4,062) (31,750) 212 (31,435)
Unbilled Work in
Process - - - -
Investment tax credit
recoverable - - 300,000 -
Prepaid expenses and
other assets (84,742) (148,544) (247,963) (131,258)
Accounts payable and
accrued liabilities 351,307 275,552 (70,816) 205,648
Income taxes payable (116,630) - 1,095,724 -
Deferred Income (99,999) - (299,999) -
---------------------------------------------------------------------
$ 71,567 $ (70,256)$(5,718,318) $ (143,689)
---------------------------------------------------------------------
---------------------------------------------------------------------
Certain of the comparative figures have been reclassified to
conform to current year's presentation.
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