Published:
Emageon Reports First Quarter 2008 Financial Results
Emageon Reports First Quarter 2008 Financial Results
BIRMINGHAM, Ala., May 12 /PRNewswire-FirstCall/ -- Emageon Inc. (Nasdaq:
EMAG) today reported financial results for its first quarter ended March 31,
2008.
Revenue for the first quarter of 2008 was $19.3 million compared to first
quarter 2007 revenue of $27.4 million. Net loss for the quarter was $4.6
million, or $0.21 per share, compared to a net loss in the quarter ended March
31, 2007 of $1.8 million, or $0.09 per share. The first quarter 2008 net loss
included a charge of $0.8 million, or $0.04 per share, for employee severance
and associated expenses.
At March 31, 2008, the Company's cash totaled $18.3 million compared to
$17.0 million at December 31, 2007. Net cash provided by operations in first
quarter 2008 was $2.6 million compared to a net usage of cash in operations of
$4.0 million in first quarter 2007. The Company has not drawn on its $15.0
million line of credit and has total debt obligations of less than $0.1
million.
The Company's net loss excluding employee severance charges and non-cash
charges for depreciation, amortization of intangible assets, and stock-based
compensation expenses was $0.9 million, or $0.04 per share, compared to first
quarter 2007 net income excluding these expenses of $1.3 million, or $0.06 per
share. These measures of earnings were not determined in accordance with
generally accepted accounting principles ("GAAP"). A reconciliation of
earnings determined under GAAP to earnings exclusive of these expenses and
non-cash charges is included below. Management believes that earnings
exclusive of these expenses, when viewed in addition to the Company's reported
GAAP results, provides an additional meaningful measure of operating
performance, enabling investors to more thoroughly evaluate current
performance in comparison to past performance. This information will
necessarily differ from comparable information that may be provided by other
companies and should not be considered in isolation or as an alternative to
the Company's operating and other financial information determined under GAAP.
The Company also reaffirmed its February 20, 2008 financial guidance for
the full year 2008 and provided guidance for the quarter ending June 30, 2008.
For the full year, the Company continues to expect sales order bookings in the
range of $65 to $70 million, revenue in the range of $87 to $89 million, a net
loss per share exclusive of restructuring charges in the range of $0.20 to
$0.23 per share, and earnings per share exclusive of depreciation,
amortization, and stock-based compensation ("non-cash charges") and
restructuring charges in the range of $0.23 to $0.27 per share. For the second
quarter of 2008, the Company expects revenue in the range of $17.5 to $18.5
million, net loss per share exclusive of restructuring charges in the range of
$0.18 to $0.20 per share, and net loss per share exclusive of non-cash charges
and restructuring charges in the range of $0.06 to $0.08 per share.
"Our first quarter results are reflective of the difficult environment in
which we are currently operating," said Chuck Jett, Chairman and CEO of
Emageon. "High penetration rates for our core radiology products in the large
hospital sector and a more constrained capital spending willingness by our
existing and prospective customers are realities that we must manage through.
We were pleased to generate positive cash flow from operations in the first
quarter. Our balance sheet is strong, and we are continuing to invest in our
software products and to position ourselves to win market share in the next
cycle."
Conference Call. Emageon will host a conference call for investors on May
12, 2008, at 10:00 A.M. EDT to discuss its financial results for the quarter.
The call will be webcast by Thomson/CCBN and can be accessed at Emageon's web
site at http://investor.emageon.com . The dial-in telephone number for the
call is 888-679-8035 (internationally, at 617-213-4848), passcode 55905402.
Replay is available from 11:00 A.M. EDT, May 12, 2008, until 11:59 P.M. EDT,
May 22, 2008, at 888-286-8010 (internationally, at 617-801-6888), passcode
44165855.
The webcast is also being distributed through the Thomson StreetEvents
Network to both institutional and individual investors. Individual investors
can listen to the call at www.fulldisclosure.com , Thomson/CCBN's individual
investor portal, powered by StreetEvents. Institutional investors can access
the call via Thomson's password-protected event management site, StreetEvents
(www.streetevents.com).
Forward Looking Statements. This press release contains forward-looking
statements about Emageon that 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 the cyclical
nature of its industry and changes in economic conditions in general, risks
associated with its history of operating losses, risks associated with changes
in its primary market for PACS radiology systems and the recent decline in
PACS radiology system sales orders, risks associated with fluctuations in its
quarterly operating results, risks associated with the recent decline in the
market price of its common stock, risks associated with the nomination of a
competing slate of directors for election at this year's annual meeting of
stockholders, the risk of loss of its senior executive management, risk
associated with expansion of its market and selling efforts into new product
segments, the risk that its target markets do not develop as expected, the
risk that its acquisitions could result in integration difficulties, dilution
or other adverse financial consequences, the risk of failure to raise
additional capital on acceptable terms, risks associated with its reliance on
continuing relationships with large customers, the risk of significant product
errors or product failures, the risk of its reliance on reseller arrangements
for important components of its solution, the risk that it may not respond
effectively to changes in its industry, the risk of its customers' reliance on
third party reimbursements, and the risk of the potential impact on its
business of Food & Drug Administration (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, 2007, which was filed with the Securities
and Exchange Commission on March 17, 2008.
Emageon undertakes no obligation to update these forward-looking
statements or other information provided in this press release except as may
be required by law.
About Emageon. Emageon provides information technology systems for
hospitals, healthcare networks and imaging facilities. Its enterprise family
of solutions includes RadSuite(TM), HeartSuite(TM) and other specialty suites.
All Emageon solutions are built on a unified Enterprise Content Management
system offering advanced visualization and infrastructure tools for the
clinical analysis and management of digital medical images, reports and
associated clinical content. Emageon's standards-based solutions are designed
to help customers enhance patient care, automate workflow, lower costs,
improve productivity, and provide better service to physicians. For more
information, please visit www.emageon.com .
On May 5, 2008, Emageon Inc. filed a preliminary proxy statement with the
Securities and Exchange Commission in connection with its upcoming 2008 annual
meeting of stockholders, and prior to the annual meeting, Emageon will furnish
its stockholders with a definitive proxy statement, together with a WHITE
proxy card. Emageon stockholders are strongly advised to read Emageon's proxy
statement as it contains important information. Stockholders may obtain the
proxy statement, any amendments or supplements to the proxy statement, and the
annual, quarterly and current reports and other information filed by Emageon
with the Securities and Exchange Commission for free at the Internet website
maintained by the Securities and Exchange Commission at www.sec.gov. Copies
of the definitive proxy statement and any amendments and supplements to the
definitive proxy statement will also be available for free at Emageon's
Internet website at www.emageon.com or by writing to Emageon Inc., 1200
Corporate Drive, Suite 200,Birmingham, Alabama 35242, Attn: Corporate
Secretary. In addition, copies of Emageon's proxy materials may be requested
by contacting our proxy solicitor, Morrow & Co., LLC at (800) 662-5200.
Emageon's directors and certain of its officers may be deemed to be
participants in the solicitation of proxies from its stockholders in
connection with the annual meeting. Information identifying these participants
and describing their direct and indirect interests is available in Emageon's
preliminary proxy statement filed with the Securities and Exchange Commission
on May 5, 2008.
Unaudited Statements of Operations
In Thousands, Except Per Share Amounts
Three Months Ended
March 31,
2008 2007 (1)
Revenue:
System sales $5,820 $13,668
Support services 13,447 13,682
Total revenue 19,267 27,350
Cost of revenue:
System sales 4,272 8,722
Support services 6,676 7,681
Total cost of revenue 10,948 16,403
Gross profit 8,319 10,947
Operating expenses:
Research and development 4,326 4,618
Sales and marketing 3,785 4,392
General and administrative 3,775 3,623
Amortization of intangible assets 345 345
Employee severance and related
charges 819 -
Total operating expenses 13,050 12,978
Operating loss (4,731) (2,031)
Interest income 157 229
Interest expense (16) (33)
Net loss $(4,590) $(1,835)
Net loss per share, basic and diluted $(0.21) $(0.09)
Weighted average shares outstanding,
basic and diluted 21,453 21,297
(1) Certain reclassifications have been made to prior year amounts
to conform with the current year presentation.
Summary Consolidated Balance Sheets
In Thousands
(Unaudited)
March 31, December 31,
2008 2007
ASSETS:
Current assets:
Cash and cash equivalents $18,283 $17,034
Trade accounts receivable, net 17,853 26,796
Inventories 6,869 6,249
Prepaid expenses and other
current assets 4,454 3,398
Total current assets 47,459 53,477
Property and equipment, net 14,932 15,143
Other noncurrent assets 3,522 3,070
Intangible assets, net 26,753 27,604
Total Assets $92,666 $99,294
LIABILITIES AND STOCKHOLDER'S EQUITY:
Current liabilities:
Accounts payable and accrued
expenses $12,418 $15,755
Deferred revenue 16,919 16,382
Current portion of capital lease
obligations 30 36
Total current liabilities 29,367 32,173
Long-term deferred revenue 3,742 4,306
Other long-term liabilities 436 466
Long-term portion of capital lease
obligations 41 53
Total liabilities 33,586 36,998
Stockholders' Equity 59,080 62,296
Total Liabilities and Stockholders'
Equity $92,666 $99,294
Reconciliation of Non-GAAP Measures of Earnings
In Thousands, Except Per Share Amounts
(Unaudited)
The following tables present the Company's net loss adjusted for employee
severance and related charges, and for non-cash charges for depreciation,
amortization of intangible assets, and stock-based compensation for the three
month periods ended March 31, 2008 and 2007. Earnings determined in this
manner do not represent earnings in accordance with generally accepted
accounting principles ("GAAP").
The tables present the adjustments made to actual net loss determined
under GAAP to derive earnings excluding the expenses described above for the
periods presented.
Three Months Ended March 31,
2008 2007
Net loss as reported $(4,590) $(1,835)
Severance and related charges 819 -
Net loss excluding severance charges $(3,771) $(1,835)
Net loss per share excluding
severance charges $(0.17) $(0.09)
Net loss as reported $(4,590) $(1,835)
Add:
Depreciation 1,075 1,717
Amortization 774 720
Stock-based compensation 1,487 (1) 687
Net (loss) income excluding certain
non-cash charges $(1,254) $1,289
Add--cash portion of severance
charges $392 $-
Net (loss) income excluding certain
non-cash charges and severance
charges $(862) $1,289
Net (loss) income per share excluding
certain non-cash charges and
severance charges $(0.04) $0.06
(1) Includes $427 of stock-based compensation incurred in connection with
severance activities, which together with the $392 of cash severance
charges form the $819 "Employee severance and related charges" line
item in the Statement of Operations for the three months ended March
31, 2008.
SOURCE Emageon Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
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