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IPS HEALTH CARE ANNOUNCES IT EXPECTS TO POST A LOSS FOR THE QUARTER AND YEAR ENDED APRIL 30

 IPS HEALTH CARE ANNOUNCES IT EXPECTS TO POST A LOSS
 FOR THE QUARTER AND YEAR ENDED APRIL 30
 IRVINE, Calif., July 6 /PRNewswire/ -- IPS Health Care Inc. (NASDAQ: IPSI) announced today that the company expects to post a loss of $2,600,000 for the quarter ended April 30, 1992, and an estimated loss of $5,088,000 for the year ended April 30, 1992. The estimated loss for the quarter and year ended April 30, 1992, is $1,500,000 greater than the company's previous estimate of April 14, 1992. The increase primarily reflects additional charges against earnings to increase receivable reserves by $1,200,000 and to provide for equipment writedowns of $262,000.
 The additional receivable reserves reflect the company's continued difficulty in collecting from third-party payors. Because of these collection shortfalls, the company continues in default on its major equipment debt.
 In addition, the company has to date been unable to find sufficient liquidity to fund its growth, and revenues are significantly below a break-even level for the company's continued operation. As a consequence of these factors the company expects that the auditors report on its financial statements will include a "Going Concern" modifier. However, the company is experiencing some increase in its revenues and is negotiating several service agreements which would increase its revenues, although not to break- even level. The company is continuing to discuss a further lease restructuring with its major equipment debt financing source and is taking other steps to reduce expenses.
 IPS Health Care Inc. is a medical technical service company which primarily provides mobile and fixed-site MRI services to health care providers and their patients.
 -0- 7/7/92
 /CONTACT: Andrew Galligan of IPS Health Care, 714-251-1300/
 (IPSI) CO: IPS Health Care Inc. ST: California IN: HEA SU: ERP


EH-JL -- LA024 -- 6828 07/06/92 21:16 EDT
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Publication:PR Newswire
Date:Jul 6, 1992
Words:308
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