SAN JUAN CAPISTRANO, Calif., Aug. 31 /PRNewswire-FirstCall/ -- Auxilio (OTC Bullentin Board: AUXO), a provider of integration strategies and outsourced services for Image Management in healthcare, today announced preliminary financial results for the second fiscal quarter ended June 30, 2004.
Revenues for the second quarter of fiscal year 2004 will be approximately $4,500,000 million, compared to $541,102 in the previous year’s second quarter.
As a result of the acquisition with The Mayo Group on April 1, 2004, the financial statements for the period ended June 30, 2004, are not comparable to the financial statements for the period ended June 30, 2003. The transaction in March 2004 in which the Company sold certain human resource offerings/products to Workstream, Inc. completed the exit from the previous business model.
Net income for the second quarter of fiscal year 2004 is estimated to be $550,000 or $0.04 per share, compared to a net loss of $722,513 million or $0.13 per share for the second quarter of fiscal year 2003.
Revenues for the first six months of fiscal year 2004 will be close to $4,500,000, compared to $894,190 in the previous year’s first six months. Net income for the first six months of fiscal year 2004 is estimated to be $1,100,000 or $0.10 per share, compared to net loss of $1,261,344 or $0.25 per share for the first six months of fiscal year 2003.
Net income for both periods includes the gain from discontinued operations, pursuant to the WorkStream transaction, and our exit from the previous business model.
The cash balance at June 30, 2004 was $2.1 million. Net cash used provided operating activities during the second quarter of fiscal year 2004 was $1.5 million.
“Revenue was exceptionally strong during the quarter due to one large transaction. We don’t expect to have any similar sized single transactions within the next six months. An average new client engagement results in $1 million in equipment revenue and $30,000 in monthly service and supply revenue. Currently, our monthly re-occurring revenue from service and supply agreements is approximately $190,000,” observed Joe Flynn, Auxilio CEO.
Outlook
Pursuant to service level agreements currently in place with customers, the backlog for reoccurring monthly service and supply revenue is $10.1 million. This is the absolute amount of future reoccurring monthly service and supply revenue due to Auxilio. Gross margin was approximately 34% for the second quarter. Expect the gross margin to decrease in future periods, as the Company is preparing for additional growth by increasing our staffing in operations, sales, and general and administrative areas.
The company encourages all interested investors to join a conference call on which company management will discuss fiscal year 2004 second quarter results and provide guidance for future expectations. The call is scheduled at 4:00 p.m. EST / 1:00 p.m. PST on August 31, 2004. The phone number for the call is 913-981-5528. A re-broadcast of the conference call will be available for two weeks at 719-457-0820 Passcode 854024.
About Auxilio
Auxilio provides integration strategies and outsourced services for Image Management in healthcare. The company helps hospitals and health systems reduce expenses and create manageable, dependable image management infrastructures by managing their back-office processes. The process is initiated through a detailed proprietary TeqTrak(TM) analysis. TeqTrak(TM) is a financial analysis that is performed at the customer premises using a combination of proprietary processes and innovative web based technology for data collection and report generation. After TeqTrak(TM) and upon engagement, the company capitates the cost of the entire Image Management process for the customer and places a highly trained resident team on site to manage the process. The company is focused solely on the healthcare industry. To find out more, visit http://www.auxilioinc.com/
Except for historical information contained herein, the matters discussed in this press release are statements of a forward-looking nature that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, without limitation, the Company’s dependence on the timely delivery of equipment, that market conditions will allow revenue growth, that the sales force can sell of solution based offering, the effect of changing economic conditions, the Company’s ability to attract and retain key management and other personnel, and the other risks and uncertainties outlined in the Company’s filings with the Securities and Exchange Commission, including, but not limited to, the Company’s Annual Report on Form 10-K. The Company undertakes no obligation to update this forward-looking information.
This release was issued through Major Newswire (http://www.majornewswire.com/)
Auxilio
CONTACT: Jim Stapleton, CFO & Corporate Secretary of AUXILIO Inc.,+1-949-481-7550, ext. 207, or fax, +1-949-481-8875, JStapleton@AuxilioInc.com
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Web site: http://www.auxilioinc.com/
