Claimsnet.com Reports Fiscal Year 2009 Results

DALLAS, March 4 /PRNewswire-FirstCall/ -- Claimsnet.com inc. (OTC Bulletin Board: CLAI), a leading provider of Internet-based business-to-business solutions for the healthcare industry, today reported its results for fiscal year 2009 and fourth quarter of 2009, which ended December 31, 2009.

For the year ended December 31, 2009, the Company reported revenues of $2,207,000, a 6% increase from the $2,080,000 reported for fiscal 2008.

Cost of revenues for the 2009 fiscal year were $1,680,000 compared to $1,640,000 for the 2008 fiscal year, a 2% increase. Selling, general and administrative expenses of $854,000 were reported for 2009 compared to the $985,000 reported in fiscal 2008, a decrease of 13%.

The Company reported a gross profit of $527,000 for fiscal year 2009, compared with a gross profit of $440,000 for fiscal year 2008, representing a 20% increase. The loss from operations for fiscal 2009 was $327,000 compared to $545,000 reported in fiscal 2008, representing a 40% decrease. The net loss for fiscal year 2009 was $364,000, or $0.01 per share, compared to $650,000, or $0.02 per share, in the prior year, representing a 44% decrease.

For the three months ended December 31, 2009, the Company reported revenues of $560,000 compared to revenues of $535,000 reported for the three months ended December 31, 2008, an increase of 5%.

Cost of revenues were flat at $422,000 for the fourth quarter of 2009 and 2008. Selling, general and administrative expenses of $182,000 for the fourth quarter of 2009 decreased from the $254,000 reported for the fourth quarter of 2008, a decrease of 28%.

The Company reported a quarterly gross profit in the fourth quarter of 2009 totaling $138,000 compared with a gross profit of $113,000 in the fourth quarter of 2008, an increase of 22%. The fourth quarter loss from operations was $44,000 in the fourth quarter of 2009 compared to the loss from operations of $141,000 reported in the fourth quarter of 2008, a decrease of 69%. The net loss for the fourth quarter of 2009 was $51,000, or $0.00 per share, as compared with a net loss of $166,000, or $0.01 per share, in the same quarter of 2008, a decrease of 69%.

"Our financial results for fiscal year 2009 and especially the last two quarters reflected the progress of the Company as we concentrated on cost reductions and efficient customer service in a difficult economic environment. We remain fully focused on this strategy of efficiency and margin growth for the Company with a goal of reaching profitability in fiscal year 2010," commented Don Crosbie, chief executive officer of Claimsnet.

"In fiscal year 2009, transaction volume increased by 18% to a total of 11,800,000 transactions compared to fiscal year 2008. This growth is the result of maintaining long term customer relationships, expanding our customer base, and offering additional services to all of our customers. Our total number of direct payer customers now exceeds 65, along with a growing number of direct provider connections. An added benefit to our customers is the more than 35 connections that have been developed with other claims clearinghouses in our industry. These relationships allow more transactions to be maintained in an electronic format, rather that being printed to paper, and we continue to add more of these connections as we expand our business relationships."