EATONTOWN, N.J., April 18 /PRNewswire-FirstCall/ -- QMed, Inc. (NASDAQ:QMED) today announced financial results for the first quarter ending February 29, 2008. Revenue for the three-month period decreased to $751,788 from $1,728,676 in the prior year's quarter. Net loss for the quarter was $(999,184) or $(0.06) per share on a diluted basis, compared to net loss of $(1,057,776) or $(0.06) per share on a diluted basis, for the same period a year ago.
Income from discontinued operations of our managed care segment for the three-month period ended was $487,185 or $0.03 per share on a diluted basis, compared to a loss of $(1,447,795) or $(0.08) on a diluted basis the previous year. The income from discontinued operations reported within the first quarter of 2008 is primarily attributable to a non-cash reversal of approximately of $1.0 million related to the reduction in the Incurred But Not Reported and Paid liability and the corresponding medical expense.
Subsequent to February 29, 2008, the Company received a $375,000 secured loan for working capital and under certain conditions can receive an additional $375,000 as described in detail in the March 20, 2008 press release and in the notes to the Company's financial statements.
Given the continuing losses and the Company's current cash position available for working capital, the financial statements contain a disclosure 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. - 732-544-5544 x1112
QMED, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
February 29, November 30,
2008 2007
ASSETS (unaudited)
Current assets
Cash and cash equivalents $ 403,546 $ 1,196,030
Accounts receivable, net of allowances
for doubtful accounts of $75,100 and
$58,980, respectively 399,639 535,810
Prepaid professional fees 203,000 228,000
Prepaid expenses and other current
assets 393,595 189,654
Assets related to discontinued operations 4,644,835 6,126,492
6,044,615 8,275,986
Property and equipment, net 632,239 717,229
Product software development costs, net 1,615,865 1,769,931
Acquired intangibles, net 379,773 421,224
Other assets 135,123 137,190
$ 8,807,615 $ 11,321,560
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
liabilities $ 2,063,790 $ 1,607,840
Leases payable, current portion 26,700 41,116
Accrued salaries and commissions 191,025 245,888
Fees reimbursable to health plans 20,050 12,900
Contract billings in excess of revenues 197,380 197,380
Income taxes payable 11,353 12,786
Liabilities related to discontinued 1,964,443 3,952,421
operations
4,474,741 6,070,331
Leases payable -- long term 50,206 49,134
Accrued severance payable, long term 12,410 309,258
4,537,357 6,428,723
Commitments and Contingencies
Stockholders' equity
Common stock $.001 par value; 40,000,000
shares authorized; 17,042,959 shares
issued and 17,020,959 outstanding,
respectively 17,043 17,043
Paid-in capital 54,935,081 54,558,476
Accumulated deficit (50,606,241) (49,607,057)
4,345,883 4,968,462
Less treasury stock at cost, 22,000
common shares (75,625) (75,625)
Total stockholders' equity 4,270,258 4,892,837
$ 8,807,615 $ 11,321,560
QMED, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Restated
For the For the
Three Months Three Months
Ended Ended
February 29, February 28,
2008 2007
Revenue $ 751,788 $ 1,728,676
Cost of revenue 330,741 731,099
Gross profit 421,047 997,577
Selling, general and administrative
expenses 1,844,056 2,224,207
Research and development expenses 60,203 427,795
Loss from continuing operations (1,483,212) (1,654,425)
Interest expense (7,660) (7,979)
Interest income 6,264 100,902
Loss from operations of joint venture - (18,146)
Other (expense) income (44) 1,975,400
(Loss) income before income tax
provision and discontinued operations (1,484,652) 395,752
Provision for income taxes (1,717) (5,733)
(Loss) income before discontinued
operations (1,486,369) 390,019
Discontinued Operations:
Income (Loss) from operations 487,185 (1,447,795)
Net loss $ (999,184) $ (1,057,776)
Basic (loss) income per share
Weighted average shares outstanding 17,020,959 16,892,163
Basic (loss) income per share --
continuing operations $ (.09) $ .02
Basic income (loss) per share --
discontinued operations .03 (.08)
Basic (loss) income per share $ (.06) $ (.06)
Diluted (loss) income per share
Weighted average shares outstanding 17,020,959 17,997,358
Diluted (loss) income per share --
continuing operations $ (.09) $ .02
Diluted income (loss) per share --
discontinued operations .03 (.08)
Diluted (loss) income per share $ (.06) $ (.06)
Source: QMed, Inc.
