Netsmart (NASDAQ:NTST)
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Netsmart Announces First Quarter Results
Revenues increase 9%, Net Income Up 12% from First Quarter Fiscal 2004
GREAT RIVER, N.Y., May 11 /PRNewswire-FirstCall/ -- Netsmart Technologies,
Inc. (NASDAQ:NTST), a leading supplier of enterprise-wide software solutions
for health and human services providers, today reported results for the first
quarter ended March 31, 2005.
Revenue for the quarter ended March 31, 2005 was $7,429,000 as compared to
$6,823,000 for the quarter ended March 31, 2004, representing an increase of
9%. Recurring revenue for the quarter was $3,188,000, an increase of 16% from
the $2,760,000 for the comparable quarter last year. The gross profit margin
for the quarter was 48% as compared to 46% for the comparable quarter in 2004.
Our firm order backlog at March 31, 2005 was $24.9 million with a recurring
revenue component of $15 million as compared to a firm order backlog of $26.1
million at March 31, 2004 which included a recurring revenue component of $13.9
million.
Net income for the quarter ended March 31, 2005 was $363,000 or $0.07 per share
basic and diluted, as compared to $325,000 or $0.06 per share basic and diluted
for the same period last year. Net income for the quarter ended March 31, 2005
increased by 12% over the quarter ended March 31, 2004.
James Conway, CEO of Netsmart Technologies, Inc. stated, "We are very pleased
to report our 27th consecutive quarter of profitability which resulted in a
balance sheet that continues to strengthen with working capital at $18.8
million and a cash balance of $18.1 million. Our strong balance sheet will be a
key dimension to our success as we continue to seek to couple our organic
growth with strategic acquisitions and projects that require software providers
to demonstrate their financial viability. It's all about positioning our
company for success. Our earnings before interest, taxes, depreciation and
amortization "EBITDA", was $948,000 for the quarter ended March 31, 2005 as
compared to $941,000 for the comparable quarter in 2004."
Reconciliation of Earnings before Interest, Taxes, Depreciation and
Amortization ("EBITDA") to Net Income.(1)
(1) Calculated for any period as the sum of net income, plus net interest
expense, income tax expense, and depreciation and amortization
expense. We consider EBITDA to be a widely accepted financial
indicator of a company's ability to service debt, fund capital
expenditures and expand its business. EBITDA is not calculated in
the same way by all companies and therefore may not be comparable to
similarly titled measures reported by other companies. EBITDA is not
a measure in accordance with accounting principles generally accepted
in the United States.
EBITDA should not be considered as an alternative to net income, as
an indicator of operating performance or as an alternative to cash
flow as a measure of liquidity. The funds depicted by this measure
may not be available for management's discretionary use due to legal
or functional requirements, debt service, or other commitments and
uncertainties.
2005 2004
EBITDA $ 948,000 $ 941,000
Less: Depreciation and amortization (407,000) (388,000)
Interest income (expense), net 38,000 (10,000)
Income taxes (216,000) (218,000)
Net Income $ 363,000 $ 325,000
About Netsmart Technologies, Inc.
Netsmart Technologies, Inc. of Great River, N.Y., through Creative
Socio-Medics, is an established, leading supplier of enterprise-wide software
solutions for health and human services providers with over 580 clients,
including 25 systems with state agencies. Creative's clients include health
and human services organizations, public health agencies, mental health and
substance abuse clinics, psychiatric hospitals, and managed care organizations.
Avatar Practice Management and the Avatar Clinician Work Station, Creative's
core products, are full-featured information systems that operate on a variety
of operating systems, hardware platforms, and mobile devices and offer
unlimited scalability.
Statement on Behalf of Netsmart Technologies, Inc.
Statements in this press release may be "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Words such as
"anticipate," "believe," "estimate," "expect," "intend" and similar
expressions, as they relate to the company or its management, identify
forward-looking statements. These statements are based on current expectations,
estimates and projections about the company's business based, in part, on
assumptions made by management. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that are difficult
to predict. Therefore, actual outcomes and results may, and probably will,
differ materially from what is expressed or forecasted in such forward-looking
statements due to numerous factors, including those described above and those
risks discussed from time to time in Netsmart's filings with the Securities and
Exchange Commission. In addition, such statements could be affected by risks
and uncertainties related to product demand, market and customer acceptance,
competition, pricing and development difficulties, as well as general industry
and market conditions and growth rates, and general economic conditions. Any
forward-looking statements speak only as of the date on which they are made,
and the company does not undertake any obligation to update any forward-looking
statement to reflect events or circumstances after the date of this release.
Information on Netsmart's or Creative's website does not constitute a part of
this release.
NETSMART TECHNOLOGIES, INC.
Comparative Operating Results for the Three Months Ended March 31,
2005 2004
Revenue $7,429,000 $6,823,000
Net Income $363,000 $325,000
Net Income
Per Share Basic $.07 $.06
Weighted
Average Shares of Common
Stock Outstanding Basic 5,342,000 5,318,000
Net Income Per Share Diluted $.07 $.06
Weighted
Average Shares of Common
Stock and Common Stock
Equivalents Outstanding Diluted 5,560,000 5,572,000
DATASOURCE: Netsmart Technologies, Inc.
CONTACT: James Conway, CEO of Netsmart Technologies, Inc.,
1-800-451-7503, ; or Stuart Fine OF Carpe DM, Inc.,
+1-908-490-0075, , for Netsmart Technologies, Inc.
Web site: http://www.netsmartech.com/