SIMS Communications Sells Portion of ATM/Scrip Division to Outside Investors; Company Continues Focus On Health Care Industry.
SIMS Communications Inc. (Nasdaq:SIMS) Friday announced that it has sold a significant portion of its ATM/Scrip terminal business to outside investors.
The terms of this agreement provide for the buyers to purchase 420 ATM/Scrip terminals from the company, and to assume approximately $700,000 worth of the company's capitalized lease obligations and $70,000 in outstanding accounts payable.
As a result of this transaction, SIMS will reduce its monthly overhead expenses by an estimated $40,000. The company will recognize deferred gross profits from these terminals, which will be offset by recognition of commission expenses from these terminals.
This sale was made in order to continue to focus the company's resources on its health care industry business units including JustMed.com, its health care Web portal, Med Store, its electronic commerce store for home medical equipment (HME) products, and the MedCard System, which provides medical billing and collection services.
SIMS Communications provides electronic transaction solutions for the health care industry. The company's products include: its MedCard System, a system that provides 100 percent paperless electronic data entry at the physician's office for all medical insurance billings and collections; JustMed.com, its health care Web portal, Med Store, its electronic commerce store; and its One Medical Service System, a cost-effective solution that gives pharmacies the ability to provide a complete, one-stop shopping solution for all its customer's home medical equipment (HME) and home health care related service needs.
This release contains forward-looking statements that are subject to risks and uncertainties, including but not limited to, the impact of competitive products and pricing, product demand and market acceptance, reliance on key strategic alliances, fluctuations in operating results and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission.
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|Date:||Jul 2, 1999|
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