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Press Release - Claimsnet.com inc. (CLAI.OB-OTC: BB)
“There is still a lot of growth taking place in the healthcare industry. The claims are growing in their numbers and complexity. People want to be paid faster and more efficiently and they are trying to reduce the administrative costs associated with the processing of claims. We are helping them do that and we think there is a good opportunity going forward of continued growth both organically and by acquisition.” - Donald B. Crosbie (CLAI) (Interview published May 9, 2008)
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FOR IMMEDIATE RELEASE:
Claimsnet.com Reports Second Quarter 2008 Results
Including a 29% Increase in Revenues
– July 28, 2008 – Claimsnet.com inc. (OTCBB: CLAI.OB), a leading provider of Internet-based business-to-business solutions for the healthcare industry, today reported its results for the second quarter of 2008, which ended June 30, 2008.
For the quarter ended June 30, 2008, Claimsnet reported revenues of $529,000, a 29% increase compared to the $411,000 reported for the second quarter of 2007.
Cost of revenues for the second quarter of 2008 was $422,000 compared to $272,000 for the second quarter of 2007, a 55% increase. Selling, general and administrative expenses of $281,000 were reported for the second quarter of 2008 compared to $201,000 reported for the second quarter of 2007.
Claimsnet reported a gross profit of $107,000 for the second quarter of 2008, compared with a gross profit of $139,000 for the second quarter of 2007.
The loss from operations for the second quarter of 2008 was $(174,000) compared to $(62,000) reported for the second quarter of 2007. The net loss for the second quarter of 2008 was $(200,000), or $(0.01) per share, compared to net loss of ($87,000), or $(0.00) per share, for the second quarter of 2007.
"We are pleased to report a 29% increase in our second quarter revenues," commented Don Crosbie , chief executive officer of Claimsnet. “The increase in overall costs during the second quarter of 2008 was due to the addition of new clearinghouse partners as well as customer support personnel, some of which was associated with the implementation of National Provider Identification (NPI) as mandated by the HIPAA regulations. The majority of our customers are substantially complete with this effort now. In addition, we added a new Vice President of Sales and a Provider focused sales person at the beginning of the second quarter. This renewed sales effort is building a good pipeline of opportunities and we anticipate that this investment in sales growth will positively impact the financial results going forward.
“We have also signed several new payer contracts (as previously announced) over the last several months and implementation of these contracts brings further revenue opportunities going forward.”
Claimsnet.com inc. is a leading provider of Internet-based claim processing solutions for the healthcare payer industry, including distinctive, advanced ASP technology. Headquartered in Dallas , Texas , Claimsnet offers systems that are distinguished by ease of use, customer care, security and measurable cost advantages. More information on Claimsnet can be found at the company’s web site at http://www.claimsnet.com.
Safe Harbor Statement Under the Private Securities Litigation Act 1995 - With the exception of historical information, the matters discussed in this press release are forward looking statements that involve a number of risks and uncertainties. The actual future results of the company could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to, maintaining access to external sources of capital, regulatory actions, success of marketing strategies, actions of the company’s competitors, dependence on suppliers and distribution channels, and continued use of the internet. Further information on the company’s risk factors is contained in the company’s quarterly, annual, and other periodic reports as filed with the .
SUMMARY OPERATIONS STATEMENT INFORMATION
(In thousands except per share data)
REVENUES $ 529 $ 411
COST OF REVENUES $ 422 $ 272
GROSS PROFIT $ 107 $ 139
SELLING, GENERAL AND ADMINISTRATIVE $ 281 $ 201
LOSS FROM OPERATIONS $ (174) $ (62)
INTEREST INCOME $ - $ 2
INTEREST EXPENSE $ (26) $ (27)
NET LOSS $ (200) $ (87)
NET LOSS PER COMMON SHARE –
BASIC AND DILUTED $ (0.01) $ (0.00)
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING – BASIC AND DILUTED 28,344 26,051
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