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 SACRAMENTO, Calif., Aug. 2 /PRNewswire/ -- Access Health Marketing (NASDAQ: ACCS) today reported higher revenues and increased earnings for the third quarter and nine months of fiscal 1993 and completion of a previously announced development funding agreement for an expanded product and market development program.
 Access Health posted revenues for the third quarter, ended June 30, 1993, of $3,964,000, up 23 percent from $3,213,000 a year earlier. Included are $194,000 in initial revenues associated with a line of new managed care products that began contributing to results this quarter. Net income was $379,000 compared to $378,000 in the prior year period. Net income per share was $.06 versus $.06 per share in the prior year period.
 Net income for the nine month period was $1,071,000 compared with $1,039,000, in the prior year period. Net income per share was $.17, based on 17 percent more shares outstanding in the current period, versus $.19 per share in the prior year period. Revenues of $11,953,000 represented a 30 percent increase over $9,186,000 in the same period last year.
 Subsequent to the end of the quarter, Access Health completed a previously announced development agreement with Personal Health Management, L.P., a new limited partnership formed by MDS Health Ventures Inc., a Canadian venture capital corporation specializing in healthcare investments, and the Health and Biotechnology Venture Fund. Under this agreement, Access Health will receive $5 million in development revenue over the next several quarters. The funding will be used to develop potential new managed care oriented products, expansion of call center capabilities for pilot program implementation and market development activities.
 Access Health will commence royalty payments to the Partnership on revenues from products developed under the agreement beginning in October 1995. The Company also has the option to repurchase the Partnership and has issued warrants for the purchase of 350,000 Access Health common shares to the limited partners.
 During the quarter, the Company made investments in expanded product development, recruitment and training of a new round-the-clock workforce for its managed care programs, and the expansion of capacity at the Company's Sacramento call center. Also during the third quarter, Access Health launched a new teleservices call center in Chicago and began to develop an additional call center in Phoenix, which is expected to commence operations during fiscal 1994. These new centers will provide the Company with significant additional call center capacity to accommodate new contracts.
 Results for the quarter include deferred expenses of approximately 1.1 million for expenses funded under the development agreement. These expenses, along with offsetting contract development revenues, will be reflected in the company's year-end financial statements.
 "We believe that the timing for an aggressive product and market development program is now, with the increasing focus on improving the quality and cost effectiveness of healthcare," said Kenneth B. Plumlee, Access Health president and chief executive officer. "The changes in the industry are creating a need for products that manage consumer healthcare demand. The initial response to our Personal Health Advisor(SM) product has been very positive. Our new development agreement allows us to make the necessary investment to capitalize on this significant opportunity."
 Plumlee noted that Access Health will launch its Personal Health Advisor(SM) product in a previously announced pilot program for Blue Cross and Blue Shield of Oregon, the state's largest health insurer, later this week.
 Access Health's personal health management programs help managed care organizations, self-insured employers and hospitals manage consumer demand for healthcare services. Its telephone-based healthcare information programs include Personal Health Advisor(SM), Ask-A-Nurse(R) and Cancer Helplink(R), and 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.
 Condensed Consolidated Statements of Operations
 ($ in thousands except per share amounts)
 Three Months Nine Months
 Ended June 30, Ended June 30,
 1993 1992 1993 1992
 Support services and materials $3,023 $2,363 $8,524 $6,958
 License implementations 941 850 3,429 2,228
 Total revenues 3,964 3,213 11,953 9,186
 Costs and expenses:
 Cost of revenues:
 Support services 1,968 1,554 5,243 4,084
 License implementations 327 320 986 907
 Sales and marketing 630 497 1,921 1,800
 General and administrative 434 320 1,373 880
 Product development 74 --- 955 ---
 Total costs and expenses 3,433 2,691 10,458 7,671
 Income from operations 531 522 1,495 1,515
 Other income 100 108 290 216
 Income before income taxes 631 630 1,785 1,731
 Provision for income taxes 252 252 714 692
 Net income $ 379 $ 378 $1,071 $1,039
 Net income per share $ .06 $ .06 $ .17 $ .19
 Shares used in per 6,418 6,241 6,343 5,434
 share calculations
 -0- 8/2/93
 /CONTACT:CONTACT: John E. Gebhart III of Access Health, 916-851-4000; or Craig A. Parsons of Pondel Parsons & Wilkinson, 310-207-9300/

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

LM-EH -- LA027 -- 8512 08/02/93 16:22 EDT
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Publication:PR Newswire
Date:Aug 2, 1993

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