EATONTOWN, N.J., July 9 /PRNewswire-FirstCall/ -- QMed, Inc. today announced financial results for the second quarter ending May 31, 2007. Revenue for the three-month period increased four-fold to $9,451,323 compared to $1,921,695 in the prior year’s quarter. This revenue includes amounts for the disease management segment of $1,218,328 and $1,608,699 for the three months ended May 31, 2007 and 2006, respectively. On a sequential basis revenue increased 49% from 2007’s first quarter revenue of $6,341,798. Net loss for the quarter was reduced to $(2,809,197) or $(0.17) per share on a diluted basis, compared to net loss of $(3,175,349) or $(0.19) per share on a diluted basis, for the same period a year ago.
Revenue for the six-month period ended May 31, 2007 increased three-fold to $15,793,121 from $5,104,318 in the same period a year ago. Net loss for the six months was $(3,866,973) or $(0.23) per share on a diluted basis, compared to net loss of $(5,607,545) or $(0.33) per share on a diluted basis, for the same period a year ago.
South Dakota SNP membership totaled 2,400 through May 31, equaling 10,320 member months. This produced $11.7 million in revenue or $1,134 Per Member Per Month (PMPM). Membership in our New Jersey SNP was 165 equaling 618 member months producing $1.1 million in revenue or $1,780 PMPM. Our consolidated medical loss ratios (MLR) were 88% and 89% for the three and six months ended May 31, 2007.
Jane Murray, QMed president and CEO said, “The second quarter four-fold revenue increase is the result of continued strong enrollment in our Medicare Advantage Special Needs Plans in South Dakota, bringing enrollment to nearly 2,600 effective July 1st. In New Jersey, we have begun to see the beginnings of the anticipated increase in enrollment as more physicians and brokers sign on. June alone increased enrollment by 30% from 165 to 210. While these numbers are small, in reality this is the trend we observed in South Dakota last year and ultimately led to the enrollment growth we now have in that market. As we indicated in our first quarter report, we anticipate continued sequential quarterly growth.”
“We are delighted to announce that we have submitted our 2008 bids to expand our SNP disease categories to include diabetes in both New Jersey and South Dakota. QMed has a long history of managing diabetes successfully and in fact 35% of our enrollment includes cardiovascular patients who have diabetes as a co-morbid condition. The diabetes SNPs will be marketed under separate offerings to accommodate benefit designs specific for the unique health needs of the population. These new stand alone offerings likely increases the prospective numbers of Medicare beneficiaries eligible for our SNP’s by 30% or more, bringing New Jersey to 95,000 from 68,000 and South Dakota to 28,000 from 19,000. The caveats being these new offerings are subject to final approval by CMS. This expansion strategy allows us to leverage existing infrastructure within these markets thereby creating more cost efficiencies,” she concluded.
About QMed, Inc.
QMed provides evidence-based clinical information management systems around the country to its health plan customers. The system incorporates Disease Management services to patients and decision support to physicians. The Company’s QMedCare subsidiary specializes in serving high-risk populations of Medicare beneficiaries. The Company also operates a Medicare Demonstration to test the feasibility of reimbursing its care coordinated DM services in the vast Medicare fee-for-service program. More information on QMed, Inc. can be obtained at www.qmedinc.com, by calling (732) 544-5544 or by emailing investor@qmedinc.com.
Except for historical information contained herein, matters discussed in this news release are forward-looking statements that involve risks and uncertainties. They include but are not limited to those relating to the timely implementation of programs, the impact of competitive product introductions, acceptance and pricing, and those risks detailed in the Company’s filings with the Securities and Exchange Commission (SEC). Actual results may differ materially from any forward-looking statements due to these risks and uncertainties.
QMED, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS May 31, 2007 November 30, 2006 ASSETS (unaudited) Current assets Cash and cash equivalents $3,629,517 $3,039,695 Investments 5,447,155 10,867,815 Accounts receivable, net of allowances of $35,887 and $59,505, respectively 2,596,799 2,005,485 Inventory, net of reserve 14,967 36,631 Prepaid commissions 459,681 - Prepaid expenses and other current assets 757,867 301,282 12,905,986 16,250,908 Restricted cash and cash equivalents, non-current 2,957,288 705,881 Property and equipment, net of accumulated depreciation 856,405 989,329 Product software development costs, net 2,113,721 2,104,788 Acquired intangibles, net 504,126 587,027 Other assets 144,838 149,202 Investment in joint ventures 19,050 23,703 $19,501,414 $20,810,838 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable and accrued expenses $2,081,966 $2,827,223 Medical claims payable 2,717,312 364,830 Leases payable, current portion 29,458 65,881 Accrued salaries and commissions 449,187 446,740 Fees reimbursable to health plans 14,990 47,005 Contract billings in excess of revenue 1,564,667 1,396,423 Deferred warranty revenue 9,700 16,583 6,867,280 5,164,685 Leases payable - long term - 11,645 Accrued severance payable, long term 317,863 619,643 7,185,143 5,795,973 Commitments and Contingencies Stockholders’ equity Common stock $.001 par value; 40,000,000 shares authorized; 17,007,489 and 16,858,539 shares issued and 16,985,489 and 16,836,539 outstanding, respectively 17,007 16,859 Paid-in capital 54,600,015 53,433,095 Accumulated deficit (42,221,669) (38,354,696) Accumulated other comprehensive loss Unrealized loss on securities available for sale (3,457) (4,768) 12,391,896 15,090,490 Less treasury stock at cost, 22,000 common shares (75,625) (75,625) Total stockholders’ equity 12,316,271 15,014,865 $19,501,414 $20,810,838 QMED, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) For the Three For the Three For the Six For the Six Months Ended Months Ended Months Ended Months Ended May 31, 2007 May 31, 2006 May 31, 2007 May 31, 2006 Revenue $9,451,323 $1,921,695 $15,793,121 $5,104,318 Cost of revenue 8,240,565 1,680,566 13,310,781 3,579,455 Gross profit 1,210,758 241,129 2,482,340 1,524,863 Selling, general and administrative expenses 4,038,774 3,599,776 8,045,628 7,073,864 Research and development expenses 521,260 430,698 949,055 882,030 Loss from operations (3,349,276) (3,789,345) (6,512,343) (6,431,031) Interest expense (6,962) (4,960) (14,941) (10,809) Interest income 159,481 189,359 321,375 375,319 Loss in operations of joint ventures (6,827) (18,678) (24,973) (38,438) Other income 400,000 450,000 2,375,400 450,000 Loss before income tax Provision (2,803,584) (3,173,624) (3,855,482) (5,654,959) (Provision) benefit for income taxes (5,613) (1,725) (11,491) 47,414 Net loss $(2,809,197) $(3,175,349) $(3,866,973) $(5,607,545) Basic and diluted loss per share Weighted average shares outstanding 16,978,568 16,802,768 16,935,840 16,794,636 Basic and diluted loss per share $(0.17) $(0.19) $(0.23) $(0.33)
QMed, Inc.
CONTACT: Robert Mosby of QMed, Inc., +1-732-544-5544, ext. 1107
Web site: http://www.qmedinc.com/
