QMed, Inc. Reports First Quarter Results

EATONTOWN, N.J., April 18  /PRNewswire-FirstCall/ -- QMed, Inc. (Nasdaq Symbol: 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)


DATASOURCE: QMed, Inc.



CONTACT:  William Schmitt of QMed, Inc., [phone] x1112



Web site:  http://www.qmedinc.com/ 

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