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American CareSource Holdings Inc. (NASDAQ: ANCI) today reported second quarter 2011 net revenue of $11.3 million compared to $16.0 million for the second quarter of 2010. In addition, the Company reported a loss of $645,000, or $0.04 per diluted share, compared to net income of $299,000, or $0.02 per diluted share reported in 2010.
“During the first half of 2011, revenues continued to be negatively impacted by competitive factors that have significantly extended the sales cycle. In addition, we have seen accelerated attrition in our key legacy accounts,” said Kenn S. George, Chairman and Chief Executive Officer of American CareSource Holdings. “The goal of new management is to identify ways to overcome the revenue challenges we face, develop new revenue sources, make selective investments and manage costs during the remainder of the year. We will analyze our alternatives and seek profitable revenue enhancements with a sense of urgency that is required under the circumstances.”
Net revenue for the second quarter of 2011 was $11.3 million compared to $16.0 million reported during the second quarter of 2010. Revenue from the Company’s two key legacy accounts declined $7.4 million, or 57%. Claims volume from the two accounts decreased 28,000 claims, or 47% during the quarter compared to the corresponding prior year period. The loss of a significant employer group by one of the Company's two key clients accounted for approximately $3.0 million of the decline, while the remainder of the decline was the result of various competitive factors and the transition status of one of the accounts related to a business combination. The decline was partially offset by $1.7 million of incremental revenue generated in the second quarter from 13 new clients implemented in 2010 and $300,000 of incremental revenue from two new clients added in 2011.
Second quarter 2011 revenues decreased 14% sequentially from $13.1 million reported during the first quarter of 2011.