BOSTON, Oct. 27 /PRNewswire-FirstCall/ -- AMICAS, Inc. , a leader in radiology and medical image and information management solutions, today reported unaudited financial results for the quarter ended September 30, 2005.
Total revenues for the third quarter of 2005 were $13.6 million as compared to $10.8 million for the third quarter of 2004, which represents a year over year increase of 27%. Sequentially, from the second quarter of 2005, revenues increased by $0.8 million or 6%.
Operating loss for the third quarter of 2005 was $(1.7) million compared to a loss of $(3.5) million for the third quarter of 2004. The Company’s net loss for the third quarter of 2005 was $(0.6) million, or $(0.01) per basic and diluted share, compared to a loss from continuing operations of $(3.9) million, or $(0.09) per basic and diluted share, for the third quarter of 2004.
The Company’s operating loss of $(1.7) million for the third quarter of 2005 includes a $2.5 million litigation settlement for the Jones case, $0.2 million of earn-out settlement, and $0.9 million of depreciation and amortization.
For the first nine months of 2005 total revenues were $38.5 million, a 27% increase compared to $30.2 million for the first nine months of 2004. Loss from continuing operations for the first nine months of 2005 was $(2.8) million, or $(0.06) per basic and diluted share, compared to a loss from continuing operations of $(13.3) million, or $(0.31) per basic and diluted share, for the first nine months of 2004.
Dr. Stephen Kahane, CEO and chairman of AMICAS said, “Demand for imaging and information management solutions continues at a good pace. Solid revenue growth, both sequentially and year over year, indicates that our focus and operational enhancements over the past few quarters are reaping rewards. In addition, we took a significant charge for settlement of the Jones case, a matter related to a 1999 transaction. We are pleased to have that behind us. I know of no other material claims remaining against the Company. In addition, putting the settlement related charges aside, income from operations for the quarter was strong as compared to the third quarter of 2004 loss from operations of $(3.5) million.”
Peter McClennen, president and COO of AMICAS said, “The new AMICAS team has really come together. We continue to build the foundation for growth which delivered strong results in Q3 with significantly improved cross functional execution yielding what we believe is a record number of customer implementations in Q3. This included hospitals, imaging centers and private practices. We expanded our technology with the release of Vision Series(TM) PACS 4.1 and further increased our capacity in our proven customer focused AMICAS Insight Services(SM) professional services offerings. We’re building out strong marketing and sales capacity and look forward to a great RSNA to propel us into 2006.”
Dr. Kahane went on to say that, “AMICAS remains in an excellent position in an excellent market. We believe that our cash resources and financial flexibility remain strong and support our ability to further enhance customer and stockholder value.”
AMICAS ended the quarter with cash and cash equivalents of $86.0 million, no long-term debt and working capital of $76.1 million.
AMICAS management reaffirmed its guidance for fiscal 2005 revenues to increase between 21% and 23% compared to 2004. The Company said that it continues to expect to have operating income adjusted to exclude depreciation, amortization and the earnout related charges as a percentage of revenues in the 10% to 15% range in the fourth quarter of 2005. Additionally, the Company expects to be net income positive in the fourth quarter of 2005.
About AMICAS, Inc.
AMICAS, Inc. (http://www.amicas.com) is a leader in radiology and medical image and information management solutions. The AMICAS(R) Vision Series(TM) products provide a complete, end-to-end solution for imaging centers, ambulatory care facilities, and radiology practices. Acute care and hospital clients are provided a fully-integrated, HIS/RIS-independent PACS, featuring advanced enterprise workflow support and scalable design. Complementing the Vision Series product family is AMICAS Insight Services(SM), a set of client- centered professional and consulting services that assist our customers with a well-planned transition to a digital enterprise.
Safe Harbor Statement
Except for the historical information herein, the matters discussed in this release include forward-looking statements. In particular, the forward- looking statements contained in this release include statements about future financial and operating results. When used in this press release, the words: believes, intends, plans, anticipates, expects, estimates, and similar expressions are intended to identify forward-looking statements. Such forward- looking statements are subject to a number of risks, assumptions and uncertainties that could cause actual results to differ materially which include, but are not limited to, the following: a significant portion of the Company’s quarterly sales are concluded in the last month of the fiscal quarter; the length of sales and delivery cycles; the deferral and/or realization of deferred software license and system revenues according to contract terms; the timing, cost and success or failure of current and new product and service introductions and product upgrade releases; the inability to achieve revenues from combined lines of products; the ability of AMICAS to comply with all government laws, rules and regulations; and other risks affecting AMICAS’ businesses generally and as set forth in AMICAS’ most recent filings with the Securities and Exchange Commission. All forward-looking statements in this release are qualified by these cautionary statements and are made only as of the date of this release. AMICAS is under no obligation (and expressly disclaims any such obligation) to update or alter its forward- looking statements whether as a result of new information, future events or otherwise. The financial statements and information as of, and for the period ended, September 30, 2005 contained in this press release are subject to review by the Company’s independent registered public accounting firm.
Sarah Carmody, Investor Relations 617.779.7892 scarmody@amicas.com AMICAS, Inc. Condensed Consolidated Balance Sheet (Unaudited) (In thousands, except share data) September 30, December 31, Assets 2005 2004 Current assets: Cash and cash equivalents $85,985 $12,634 Accounts receivable, net 12,766 11,423 Computer hardware held for resale 150 279 Deferred income taxes, net - 28,200 Prepaid expenses and other current assets 1,362 3,053 Current assets of discontinued operations - 10,551 Total current assets 100,263 66,140 Property and equipment, net 1,056 1,988 Goodwill 27,313 27,313 Acquired/developed software, net 10,112 11,580 Other intangible assets, net 2,618 2,938 Other assets 941 1,447 Non-current assets of discontinued operations - 22,480 Total assets $142,303 $133,886 Liabilities and stockholders’ equity Current liabilities: Accounts payable and accrued expenses $14,033 $12,045 Deferred revenue, including unearned discounts 8,547 10,474 Current portion long-term debt - 9,657 Other current liabilities 1,554 - Current liabilities discontinued operations - 13,996 Total current liabilities 24,134 46,172 Long-term debt - 19,017 Non-current liabilities of discontinued operations - 2,813 Other liabilities, primarily unearned discounts 855 1,229 Stockholders’ equity: Preferred stock $.001 par value; 2,000,000 shares authorized; none issued and outstanding - - Common stock $.001 par value; 200,000,000 shares authorized; 50 46 47,975,548 and 46,338,568 shares issued Additional paid-in capital 221,318 211,888 Accumulated deficit (97,582) (140,807) Treasury stock, at cost, 1,985,502 shares (6,472) (6,472) Total stockholders’ equity 117,314 64,655 Total liabilities and stockholders’ equity $142,303 $133,886 AMICAS, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2005 2004 2005 2004 Revenues Maintenance and services $9,692 $7,459 $27,047 $21,268 Software licenses and system sales 3,920 3,291 11,444 8,938 Total revenues 13,612 10,750 38,491 30,206 Costs and expenses Cost of revenues: Maintenance and services 1,707 1,394 4,292 4,506 Software licenses and system sales, includes amortization of software costs of $489, $795, $1,477 and $2,383, respectively 1,282 1,628 4,094 4,248 Selling, general and administrative 6,904 8,070 22,247 24,580 Research and development 2,274 2,413 6,836 7,066 Depreciation and amortization 441 490 1,401 1,567 Settlement of earn-out 193 - 1,747 - Settlement of litigation 2,471 - 2,471 - Restructuring charges - 285 1,023 285 15,272 14,280 44,111 42,252 Operating loss (1,660) (3,530) (5,620) (12,046) Non-operating income (expense) Interest income 751 42 1,680 95 Interest expense (2) (367) (751) (1,091) Loss from continuing operations, before income taxes (911) (3,855) (4,691) (13,042) (Benefit) provision for income taxes (346) 75 (1,846) 225 Loss from continuing operations (565) (3,930) (2,845) (13,267) Gain on the sale of discontinued operations, net of taxes of $34,600 - - 46,070 - Income (loss) from discontinued operations - 3,559 - 10,721 Net (loss) income $(565) $(371) $43,225 $(2,546) Net (loss) income per share Basic: Continuing operations $(0.01) $(0.09) $(0.06) $(0.31) Discontinued operations - 0.08 1.01 0.25 $(0.01) $(0.01) $0.95 $(0.06) Diluted: Continuing operations $(0.01) $(0.09) $(0.06) $(0.31) Discontinued operations - 0.08 1.01 0.25 $(0.01) $(0.01) $0.95 $(0.06) Weighted average number of shares outstanding: Basic 47,208 43,552 45,663 43,454 Diluted 47,208 43,552 45,663 43,454
AMICAS, Inc.
CONTACT: Sarah Carmody of AMICAS, Investor Relations, +1-617-779-7892,scarmody@amicas.com
Web site: http://www.amicas.com//
