RANCHO CORDOVA, Calif., May 6 /PRNewswire-FirstCall/ -- VantageMed Corporation (BULLETIN BOARD: VMDC.OB) today announced financial results for the quarter ended March 31, 2004. Total revenues for the quarter ended March 31, 2004 were $5.1 million compared to $5.3 million for the quarter ended March 31, 2003.
Net loss before interest, taxes, depreciation and amortization (EBITDA) totaled $574,000 for the quarter ended March 31, 2004. This compares to an EBITDA loss of $722,000 for the year ago quarter ended March 31, 2003. We present EBITDA because we believe it provides an alternative measure by which to evaluate our performance. EBITDA is not a measurement defined by GAAP and should not be considered an alternative to, or more meaningful than, information presented in accordance with GAAP.
VantageMed reported a net loss of $706,000, or $0.08 per basic and diluted share, for the quarter ended March 31, 2004 compared to a net loss of $965,000, or $0.11 per basic and diluted share, for the year ago quarter ended March 31, 2003. The improvement in net loss is a direct result of continued cost reduction efforts and operational efficiencies.
Richard M. Brooks, Chairman and Chief Executive Officer, commented, "We are pleased with our sales and marketing efforts as we have seen a continued strong demand for our RidgeMark product. In the first quarter, we signed 65 RidgeMark orders as compared to 11 from a year ago, which shows continued acceptance of the RidgeMark product in the marketplace. Installations of these systems have not happened as quickly as we would have liked, thus increasing our backlog and delaying revenue to future periods. We have made recent key hires in our client services organization, including a new Vice President of Client Services, Jeff Schuett and are expecting improved delivery capabilities in future periods."
VantageMed will be hosting a conference call related to first quarter 2004 earnings today, May 7, 2004 at 5:00 P.M. Eastern Time and will be broadcasting the call live over the Internet at http://www.firstcallevents.com/service/ajwz406147443gf12.html . A direct link will also be available on the company's website at http://www.vantagemed.com/ and a playback of the call will be available for 90 days.
VantageMed is a provider of healthcare information systems and services distributed to over 12,000 customer sites nationally. Our suite of software products and services automates administrative, financial, clinical and management functions for physicians and other healthcare providers and provider organizations.
This press release may be deemed to contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements are made as of today's date and we do not undertake any obligation to update forward-looking statements. You can identify such statements by our use of such words as "should," "expect," "will," "intends," and similar words and phrases which denote future events and which may depend on the future performance of the Company. Our assumptions underlying these statements are also "forward-looking" statements. Forward-looking statements are based on information and assumptions that are dynamic in nature and subject to rapid and sometimes abrupt changes. Our forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those stated or implied by the statements. These risks and uncertainties include risks related to our failure to improve our operating cash flow, the inability of our restructuring efforts to improve profitability and our inability to increase our revenue or to grow the sales of our products. Our forward-looking statements are also subject to important risks and uncertainties detailed in our latest reports filed with the SEC and available on its website at http://www.sec.gov/.
VantageMed Corporation Consolidated Statements of Operations (In Thousands, Except Per Share Amounts) (Unaudited) Three Months Ended Mar. 31 Mar. 31 2004 2003 Revenues: Software and systems $1,102 $1,220 Customer support 2,816 2,913 Electronic services 1,147 1,205 Total revenues 5,065 5,338 Cost of revenues: Software and systems 468 520 Customer support 1,758 1,830 Electronic services 630 820 Total cost of revenues 2,856 3,170 Total gross margin 2,209 2,168 Operating expenses: Selling, general and administrative 2,051 2,243 Product development 719 537 Depreciation and amortization 126 242 Stock-based compensation 13 2 Asset impairment and restructuring charges -- 108 Total operating costs and expenses 2,909 3,132 Loss from operations (700) (964) Interest and other income (expense): Interest income 13 25 Interest and other expense (19) (26) Total interest and other income (expense), net (6) (1) Net loss $(706) $(965) Net income (loss) per share - basic and diluted $(0.08) $(0.11) Weighted-average shares - basic and diluted 8,353 8,474 Reconciliation - GAAP net loss to EBITDA: GAAP net income (loss) $(706) $(965) Depreciation and amortization 126 242 Interest (income) expense, net 6 1 EBITDA $(574) $(722) VantageMed Corporation Consolidated Statements Of Cash Flows (In Thousands) (Unaudited) Three Months Ended March 31, 2004 2003 Cash flows from operating activities: Net loss $(706) $(965) Adjustments to reconcile net loss to net cash used for operating activities - Depreciation and amortization 126 242 Stock-based compensation 13 2 Changes in assets and liabilities - Accounts receivable 21 264 Inventories 121 (6) Prepaid expenses and other 49 55 Accounts payable and accrued liabilities (529) 131 Customer deposits and deferred revenue 449 184 Net cash used for operating activities (456) (93) Cash flows from investing activities: Purchases of property and equipment (52) (82) Proceeds from maturity of investments -- 506 Proceeds from notes receivable -- 17 Net cash provided by (used for) investing activities (52) 441 Cash flows from financing activities: Proceeds from issuance of stock options 8 -- Principal payments on long-term debt (125) (121) Net cash used for financing activities (117) (121) Net increase (decrease) in cash and cash equivalents (625) 227 Cash and cash equivalents, beginning of period 1,585 1,440 Cash and cash equivalents, end of period $960 $1,667 VantageMed Corporation Consolidated Balance Sheets (In Thousands, Except Share And Per Share Amounts) March 31, December 31, 2004 2003 (Unaudited) ASSETS Current assets: Cash and cash equivalents $960 $1,585 Short-term investments 765 774 Accounts receivable, net of allowance of $174 and $129, respectively 2,352 2,373 Inventories, net 148 269 Prepaid expenses and other 325 366 Total current assets 4,550 5,367 Property and equipment, net 477 506 Other assets 14 17 Intangibles, net 1,703 1,748 Total assets $6,744 $7,638 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $421 $461 Accounts payable 1,001 1,162 Accrued liabilities 2,073 2,386 Customer deposits and deferred revenue 3,994 3,545 Total current liabilities 7,489 7,554 Long-term portion of restructuring reserve, net of current portion 317 372 Long-term debt, net of current portion 110 195 Total liabilities 7,916 8,121 Stockholders' deficit: Common stock, $0.001 par value, 20,000,000 shares authorized; 8,361,264 and 8,343,770 shares issued and outstanding at March 31, 2004 and December 31, 2003 8 8 Additional paid-in capital 72,504 72,483 Accumulated other comprehensive income 12 16 Accumulated deficit (73,696) (72,990) Total stockholders' deficit (1,172) (483) Total liabilities and stockholders' deficit $6,744 $7,638
VantageMed CorporationCONTACT: Investor Relations, Liesel Loesch, +1-916-638-4744, ext. 213,or investor@vantagemed.com, or Media, Jennifer Morgano, +1-510-536-6012, orjmorgano@vantagemed.com, both of VantageMed Corporation
Web site: http://www.vantagemed.com/
