GRAND PRAIRIE, Texas, April 1 /PRNewswire-FirstCall/ -- Precis, Inc. filed Form 12b-25 today with the Securities and Exchange Commission requesting an extension for the filing of its annual report on Form 10-K for the year ended December 31, 2004 due March 31, 2005.
The Company experienced unanticipated delays in completing its financial statements for the fiscal year. Extraordinary demands on the Company’s personnel and resources resulting from the transition of leadership positions within the Company’s financial department, including the Company’s Chief Financial Officer and Controller, contributed to the unanticipated delays. The Company expects to file its Form 10-K by April 15, 2005.
The Company expects that its earnings, when reported, will reflect a loss for the fourth quarter and for the year ended December 31, 2004. Management currently estimates that the net loss for 2004 will exceed $2 million, but will be less than $3 million ($(0.17) to $(0.25) per share). The loss will result, in large part, from recognition of impairment to the carrying amount of goodwill associated with the Company’s Foresight subsidiary, a non-core business, as well as from impairment of capitalized software cost and providing allowances for uncollectible receivables and notes. The Company does expect, however, to post positive cash flow from operations for the year ended December 31, 2004 and will report a solid cash position at year-end.
Precis, Inc. will schedule a conference call to discuss the financial results for the year upon filing of its Form 10-K. Management will also discuss changes made by the Company to correct the revenue and expense trends that resulted in its operating loss for the fourth quarter. Once the date of the call is determined the Company will issue a notification via press release.
About Precis Inc.
Precis Inc. and its subsidiaries market non-insurance health care savings programs, administer tax-favored reimbursement accounts, provide third party administration services to self funded employer groups and offer a broad range of financial solutions such as health and life insurance to individuals and businesses. For more information on Precis, its subsidiaries Care 125, Care Financial, LLC, and Access Administrators visit http://www.precis-pcis.com/, http://www.care125.com/, and http://www.care-financial.com/, http://www.accesshealthsource.com/ respectively.
Contact: Bob Bintliff Joe Diaz Chief Financial Officer The RCG Group Precis, Inc. 480-675-0400 972-343-6501
Precis, Inc.
CONTACT: Bob Bintliff, Chief Financial Officer of Precis, Inc.,+1-972-343-6501; or Joe Diaz of The RCG Group, +1-480-675-0400, for Precis,Inc.