BIRMINGHAM, Ala., Dec. 13 /PRNewswire-FirstCall/ -- Emageon Inc. , a leading provider of enterprise visual medical systems to hospitals and healthcare networks, gave updated financial guidance at an investor and analyst presentation today in Nashville, Tennessee.
Emageon now expects revenue in 2006 to be in the range of $122 to $125 million, which would represent an increase of 64% to 72% over expected revenue in 2005. This supersedes the guidance of 45% to 50% revenue growth given by the Company in connection with its announcement of the acquisition of Camtronics Medical Systems on November 1, 2005. The Company confirmed its longer term target of 30% or greater revenue growth for years beyond 2006.
The Company also expects earnings per share for 2006 to be in the range of $0.14 to $0.18 per share, excluding the impact of any one-time merger integration charges relating to the acquisition of Camtronics. The guidance for 2006 includes the impact of an incremental non-cash expense of $0.10 per share related to the adoption of FAS 123R (stock option expense), a non-cash expense of $0.06 per share for the amortization of purchased software related to the acquisition of Camtronics, and an expense of $0.03 per share for compliance with Section 404 of the Sarbanes-Oxley Act. Emageon indicated that it expects revenue of $23 to $25 million and a net loss of $3.5 to $5.0 million in the fourth quarter of 2005. The Company also expects to record a net loss in the first quarter of 2006 as Emageon begins to integrate Camtronics. The Company expects to return to profitability in the second quarter of 2006.
“Our business is generating stronger momentum as we enter 2006. With the Camtronics acquisition we are attracting a great deal of industry attention, as evidenced by our recent signing of new contracts with The Johns Hopkins Hospital and Meridian Health,” said Chuck Jett, Chief Executive Officer of Emageon.
About Emageon Inc.
Emageon provides an enterprise-level advanced visualization and infrastructure solution for the clinical analysis and management of digital medical images within multi-hospital networks, community hospitals and diagnostic imaging centers. Emageon’s web-enabled software provides physicians in multiple medical specialties with dynamic tools to manipulate and analyze images in two and three dimensions. With these tools physicians have the ability to better understand internal anatomic structure and pathology, which can improve clinical diagnoses, disease screening and therapy planning. Emageon’s open standards-based solution is designed to help customers improve staff productivity, automate complex medical imaging workflow, lower total cost of ownership and provide better service to physicians and patients. On November 1, 2005, Emageon announced that it had acquired Camtronics Medical Systems, Ltd., a leading provider of cardiology image and information management systems. For more information, please visit http://www.emageon.com.
This press release contains forward-looking statements about Emageon which represent the Company’s current views with respect to, among other things, future events and financial performance. Any forward-looking statements contained in this press release are based on Emageon’s historical performance and on current plans, beliefs and expectations. Actual results may differ materially from those expressed or implied by such forward-looking statements as a result of various risks, uncertainties and other factors beyond its control. These risks, uncertainties and other factors include, among others, the risk that it may not compete successfully against larger competitors, risks associated with its history of operating losses, the risk that it may not manage its growth effectively, risks related to acquisitions (including the risk that the integration of the Camtronics acquisition could be delayed or not be completed at all), risks associated with its reliance on continuing relationships with large customers, the risk of significant product errors or product failures, its reliance on reseller arrangements for important components of its solution, the risk that it may not respond effectively to changes in its industry, its customers’ reliance on third party reimbursements, and the potential impact on its business of FDA regulations and other applicable health care regulations. Additional information concerning these and other factors that could affect Emageon’s financial and operating results may be found under the heading “Risk Factors” and elsewhere in the Company’s Form 10-K for the year ended December 31, 2004, which was filed with the Securities and Exchange Commission on March 31, 2005. Emageon undertakes no obligation to update these forward-looking statements or any other information provided in this press release except as may be required by law.
Emageon Inc.
CONTACT: W. Randall Pittman, CFO of Emageon, +1-205-980-7600, orrpittman@emageon.com
Web site: http://www.emageon.com/