AMICAS, Inc. Reports Financial Results for the Third Quarter

BOSTON, Oct. 31 /PRNewswire-FirstCall/ -- AMICAS, Inc. , a leader in radiology and medical image and information management solutions, today reported unaudited financial results for the third quarter ended September 30, 2007.

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Revenue: Total revenues for the third quarter of 2007 were $13.3 million, compared to $11.8 million for the third quarter of 2006.

Operating Income/Loss: Operating loss for the third quarter of 2007 was $521,000, compared to operating loss of $1.2 million for the third quarter of 2006.

Net Income/Loss: The Company's net income for the third quarter of 2007 was $374,000, or $0.01 per share, compared to net income of $305,000, or $0.01 per share, for the third quarter of 2006.

In the third quarter of 2007, both operating loss and net income included $514,000 of non-cash stock-based compensation expense and $789,000 of depreciation and amortization. In the third quarter of 2006, both operating loss and net income included $467,000 of non-cash stock-based compensation expense and $786,000 of depreciation and amortization.

Cash and Cash Flow: AMICAS ended the third quarter of 2007 with a cash, cash equivalents, and marketable securities balance of $75.1 million, no long term debt, and working capital of $70.2 million. For the third quarter ended September 30, 2007, net cash provided by operations was $930,000.

Fiscal Year-to-Date Financial Highlights

Revenue: Total revenues for the first nine months of 2007 were $38.2 million, compared to $38.0 million for the first nine months of 2006.

Operating Loss: Operating loss for the first nine months of 2007 was $2.7 million, compared to an operating loss of $2.8 million for the first nine months of 2006.

Net Income/Loss: The Company's net income from continuing operations for the first nine months of 2007 was $40,000, or $0.00 per share, compared to net loss from continuing operations of $108,000, or $(0.00) per share, for the first nine months of 2006.

For the first nine months of 2007, both operating loss and net income included $1.5 million of non-cash stock-based compensation expense and

$2.3 million of depreciation and amortization. For the first nine months of 2006, both operating loss and net income from continuing operations included $0.5 million of non-recurring charges, $1.4 million of non-cash stock-based compensation expense, and $2.4 million of depreciation and amortization.

Cash Flow: Cash provided by operations was $5.6 million for the first nine months of 2007.

Business Perspective

Dr. Stephen Kahane, CEO and chairman of AMICAS, said, "In Q3, we again had positive cash flow from operations and continued to make significant investments in new technology and go-to-market programs related to radiology automation and revenue cycle management. We are excited to highlight our strong end-to-end workflow-oriented radiology automation solutions at the upcoming Radiology Society of North America annual meeting, the largest radiology meeting of the year."

Dr. Kahane went on to say, "Our target markets continue to have an intense need for automation improvement. We believe that our solutions, more so than others in the market, help practices and imaging-related businesses grow and operate more efficiently. We continue to stay close to our customers and prospects and to bring innovative and compelling automation solutions to bear on the challenges facing these practices and imaging businesses. There is an important place in this market for a strong, independent image and information management company that is focused on innovation and customer success. We are working to make it clear to the market that AMICAS is their best partner for automation support that will make a significant difference for their practices and imaging-related businesses."

Looking Forward

AMICAS expects 2007 revenues to be between $51.0 million and $53.0 million, with a net loss for fiscal year 2007 between ($0.03) and ($0.01) per share. In addition, AMICAS expects 2007 bookings growth of about 30 percent. Bookings are defined as contractual commitments from customers for licenses, services, hardware, and maintenance/support. This guidance is within the range of previously communicated company expectations.

Conference Call

AMICAS will host a conference call on Thursday, November 1, at 8:30 a.m. Eastern Time to discuss the Company's 2007 third quarter and fiscal year-to-date results. Investors and other interested parties may dial in to the call using the toll free number, 800-862-9098 (Conference ID: 7AMICAS). The conference call will also be available via Webcast at www.amicas.com. Following the conclusion of the call, a replay will be available at 800-839-2475 or 402-220-7220 (Conference ID: 7AMICAS) until December 1, 2007.

AMICAS, Vision Series, Vision Reach, RadStream, and AMICAS Insight are trademarks or registered trademarks of AMICAS, Inc.

About AMICAS, Inc.

AMICAS, Inc. (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 with a fully-integrated, hospital information system-independent PACS that features advanced enterprise workflow support and scalable design. Complementing the Vision Series product family is AMICAS Insight(TM) Solutions, 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 our anticipated financial and operating results for the remainder of fiscal year 2007. 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; potential patent infringement claims against AMICAS and the related defense costs; 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, including the section entitled "Risk Factors" of our most recent annual report on Form 10-K, and subsequent quarterly reports on Form 10-Q. 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, 2007, contained in this press release are subject to review by the Company's independent registered public accounting firm.

lgould@amicas.com



CONTACT: Lisa Gould of AMICAS, Inc., +1-617-779-7892, lgould@amicas.com

Web site: http://www.amicas.com//

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