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ACCESS HEALTH REPORTS 29 PERCENT GAIN IN FIRST QUARTER REVENUES, INCREASED EARNINGS

 SACRAMENTO, Calif., Feb. 8 /PRNewswire/ -- Access Health Marketing (NASDAQ: ACCS) today announced it achieved record revenues and call volumes and increased earnings for the first quarter of fiscal 1993. The company also indicated that it expects to make an announcement in the near future regarding initial contracts for its new products designed for the self-insured employer and managed care markets.
 Revenues rose 29 percent to $3,745,000 from $2,908,000 in the corresponding quarter of fiscal 1992, while a 45 percent increase in quarterly call volume in the first quarter reflected the continuing growth of Access Health's health information and referral programs.
 Before new product development costs, both operating income and income before taxes increased 79 percent over the prior-year period. Operating expenses for the quarter included new product development costs of $391,000 related to Access Health's recently formed managed care division. Net income, including product development expenses, increased to $330,000, from $315,000 a year earlier. Per share results were 5 cents for the current-year quarter, based on 31 percent more shares outstanding, vs. 7 cents in the same period last year. The increased shares reflected the company's initial public offering in February 1992.
 "I am particularly pleased with the overall strength of our results in light of heavy product development and market introduction costs associated with our new managed care products," said Kenneth B. Plumlee, president and chief executive officer.
 Product development investments were associated with the introduction of two major new products for the employer and managed care markets, Personal Health Advisor and the Access Care Management System. Additional costs, such as new personnel, training and pre-implementation services, were incurred related to contracts for several initial managed care customers. Access Health plans to make an announcement regarding these new contracts in the near future. These contracts are expected to begin contributing to operating results in the company's third fiscal quarter.
 "The current focus on healthcare reform creates an environment that Access Health can directly benefit from as our products continue to demonstrate that consumer healthcare information improves the quality of care and reduces costs," he added. "We believe there is a very substantial market opportunity for the company's products for the self- insured employer and managed care markets.
 "The initial response to Access Health's new products is very positive and we plan to make continued significant product development and marketing investments in the managed care division. While these additional investments will impact operating margins in the near term, we believe they are warranted based on the significant opportunities these new markets represent," Plumlee stated.
 During the first quarter, the company's hospital products showed continued strength and gross margins from recurring support revenues showed improvement over recent quarters. A strong endorsement for Access Health's hospital products during the quarter was the expansion of an existing Ask-A-Nurse(TM) contract with Alta Bates Medical Center in Berkeley, Calif., to encompass a broader geographic region. This represented significant territory licensing fees in the quarter and should lead to substantial future recurring revenues for the company as additional hospitals participate in the program.
 Access Health programs and services help managed care organizations, self-insured employers and hospitals manage consumer demand for healthcare services. Its healthcare information, prevention and care management programs are designed to improve patient access, ensure the cost-effective delivery of care and promote member satisfaction by providing consumers with information they need to make better healthcare decisions and avoid unnecessary or inappropriate care.
 ACCESS HEALTH MARKETING INC.
 Condensed Consolidated Statements of Operations
 (Amounts in thousands)
 (Unaudited)
 Three months ended
 Dec. 31,
 1992 1991
 Revenues:
 Support services $2,548 $2,235
 License implementations 1,197 673
 Total revenues 3,745 2,908
 Costs and expenses:
 Cost of revenues:
 Support services 1,539 1,183
 License implementations 298 273
 Sales and marketing 587 693
 General and administrative 475 287
 Product development 391 ---
 Total costs and expenses 3,290 2,436
 Income from operations 455 472
 Other income 95 53
 Income before income taxes 550 525
 Provision for income taxes 220 210
 Net income $330 $315
 Net income per share $.05 $.07
 Shares used in per share calculations 6,253 4,780
 -0- 2/8/93
 /CONTACT: John E. Gebhart III of Access Health Marketing, 916-851-4000; or Craig A. Parsons of Pondel Parsons & Wilkinson, 310-207-9300, for Access Health Marketing/
 (ACCS)


CO: Access Health Marketing Inc. ST: California IN: HEA SU: ERN

JL -- LAON1 -- 3935 02/08/93 09:01 EST
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Publication:PR Newswire
Date:Feb 8, 1993
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