EATONTOWN, N.J., March 26 /PRNewswire-FirstCall/ -- QMed, Inc. today announced financial results for the fiscal year and fourth quarter ending November 30, 2007. Revenue for the year decreased to $5,246,789 from $8,136,305 a year ago. Net loss for the year totaled $(11,252,361) or $(0.66) per share on a diluted basis, compared to a net loss of $(14,236,224) or $(0.85) on a diluted basis the previous year. Revenue for the three-month period ended November 30, 2007 decreased to $1,527,094 from $1,817,943. Net income for the quarter was $1,816,011 or $0.11 per share on a diluted basis, compared to net loss of $(5,311,278) or ($0.32) per share a year ago.
As previously reported, the Company has discontinued its Special Needs Plan activities within South Dakota and New Jersey. As of November 1, 2007, the Company's captive insurance entity ceased taking risk on the members enrolled in the South Dakota SNP Plan. Effective January 1, 2008, there were no members enrolled in the QMedCare SNP in New Jersey. In addition, the Company sold its medical equipment business in the fourth quarter resulting in a gain of sale of $216,952 or $.01 per share on a diluted basis. As a result, the activities of the SNPs and the equipment business have been reflected as discontinued operations and the financial statements have been restated for all prior periods presented. The loss from discontinued operations for the year ended was $(6,405,545) or $(0.38) per share on a diluted basis, compared to a loss of $(4,740,861) or $(0.28) on a diluted basis the previous year.
The net income reported within the fourth quarter of 2007 is primarily attributable to the execution of a settlement agreement with DAKOTACARE settling its liability for $750,000 in connection with its SNP activities in South Dakota. This resulted in a non-cash reversal of approximately of $7.4 million offset by the Company's cost of approximately $0.9 million for exiting this business segment, the net of which is reflected as part of discontinued operations.
Given the continuing losses and the Company's current cash position available for working capital, the November 30, 2007 financial statements contain an unqualified opinion with a going concern uncertainty emphasis paragraph that raises substantial doubt about the Company's ability to continue as a going concern.
About QMed, Inc.
QMed has developed evidence-based clinical information management systems for use by health plan customers. The QMed systems incorporate Disease Management services to patients and decision support to physicians. The Company's subsidiaries have specialized in serving high-risk populations of Medicare beneficiaries.
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.
CONTACT: William Schmitt, QMed, Inc., +1-732-544-5544 x1112
Web site: http://www.qmedinc.com/
