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QMed, Inc., Reports 205% Revenue Increase; Sequential Revenue Growth at 37%.

LAURENCE HARBOR, N.J., July 10 /PRNewswire/ --

QMed, Inc. (Nasdaq: QEKG) today announced financial results for the second quarter ending May 31, 2001. Revenues for the three months rose to $1,654,698 from $542,562 a year ago. This 205% year over year increase was also a 37% sequential increase from the first quarter ending February 28, 2001. The loss for the second quarter also improved, declining to $(516,955), or $(0.04) per share, compared to $(555,391), or $(0.04) per share from the prior year.

For the six months ending May 31, 2001, revenues rose to $2,862,625 from $1,072,951 a year ago, a 167% increase. Losses for the six months were $(793,930) or $(0.06) per share compared with $(788,550) or $(0.06) per share a year ago. Cash and investments stand at $5.9 million.

Michael W. Cox, president and CEO, said, "QMed is five quarters into a strong sequential growth cycle, a cycle that we anticipate will continue and that we are carefully managing. Second quarter revenue growth included a first full three month contribution from our previously announced expansion with The Regence Group in Washington and Oregon. It also reflected a modest contribution from our enterprise-wide PacifiCare implementation, which will grow as we continue that multi-state rollout. Revenue from our most recently announced expansion with The Regence Group into Idaho and Utah will begin in August."

"We expect that revenues for this fiscal year will at least triple last year's $2,700,000, based solely upon business already booked," he continued. "That business ought to double again next year, again based purely on full implementation of already announced contracts. We further expect to add new business, to be profitable in the fourth quarter, to implement our Medicare demonstration and to implement our first technology based congestive heart failure customer."

"Our approach to managing chronic illnesses clearly differentiates us both in the marketplace for our services and, we believe, in the investment market as well," Cox added. "These are not unconnected. The fact that our health and financial outcomes are statistically meaningful gives us the strategic flexibility to guarantee them. That flexibility can function simultaneously as a competitive advantage and a risk management technique for the Company and its shareholders. Our model of recurring revenues, sequential growth and patented technology combined with high margins and the low overheads of implemented programs is nowhere replicated."

About QMed, Inc.

QMed, Inc.'s Ohms|CVD (On-Line Health Management System for CardioVascular Disease) is a powerful and elegant proprietary information and communication technology, bringing combined patient-specific prognosis and national standard therapeutic recommendations to primary care doctors, while incorporating process and quality reports of cost and health outcomes for the health care organization. The system manages care for patients either diagnosed with or at risk for coronary artery disease, stroke, congestive heart failure, hypertension and diabetes-CV. It uniquely addresses geographic practice variation and pharmacy optimization. QMed is the only publicly traded firm selected to participate in the Medicare Coordinated Care Demonstration, which will test reimbursing Ohms|CAD in the Medicare fee for service program. The Ohms system is currently utilized enterprise-wide by PacifiCare Health, by Regence BlueCross BlueShield of Oregon, in the State of Washington by Regence BlueShield, Regence BlueShield in Idaho, by Regence BlueCross BlueShield in Utah, by CHA Health in Kentucky, in South Dakota with DAKOTACARE. The Company also designs and markets diagnostic medical devices. More information on QMed, Inc. can be obtained at http://www.qmedinc.com, by calling (732) 566-2666 or by email at investor@qmedinc.com.

Except for historical information contained herein, matters discussed in this news release are forward-looking statements that involve risks and uncertainties. They include but are not limited to those relating to the timely implementation of programs, the impact of competitive product introductions, acceptance and pricing, and those risks detailed in the Company's filings with the Securities and Exchange Commission (SEC). Actual results may differ materially from any forward-looking statements due to these risks and uncertainties.

For the Three For the Three For the Six For the Six

Months Ended Months Ended Months Ended Months Ended

May 31, 2001 May 31, 2000 May 31, 2001 May 31, 2000

Revenue $1,654,698 $542,562 $2,862,625 $1,072,951

Comprehensive

(loss) $(516,955) $(555,391) $(793,930) $(788,550)

(Loss) per

common share $(.04) $(.04) $(.06) $(.06)

Average shares

outstanding 13,537,626 12,641,966 13,230,019 12,456,981

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Publication:PR Newswire
Geographic Code:1USA
Date:Jul 10, 2001
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