QMed (CE) (USOTC:QMED)
Historical Stock Chart
From Jul 2019 to Jul 2024
EATONTOWN, N.J., Oct. 10 /PRNewswire-FirstCall/ -- QMed, Inc. (NASDAQ: QMED) today announced financial results for the third quarter ending August 31, 2006. Revenue for the three-month period decreased to $2,202,270 from $5,504,634 in the prior year's quarter. Net loss for the quarter was $(3,317,401) or ($.20) per share, compared to net income of $992,237 or $.05 per share on a diluted basis, for the same period a year ago.
The Company has been notified by HealthSuite Partners, a joint venture with Alere Medical, AirLogix and the Company that the HealthSuite Partners contract with HealthPartners, a Minnesota managed care organization, would not be extended beyond April 5, 2007. In the third quarter, the joint venture contributed $841,000 in revenue. This development does not affect the Company's previously announced revenue guidance of $38 - $44.5 million for its QMedCare Medicare Special Needs Plan subsidiary.
Michael W. Cox, QMed president and CEO said, "Third quarter results reflect continued investments in our Medicare Special Needs Plans (SNPs) for New Jersey and South Dakota. We expect that such investments will increase in the fourth quarter as we complete our infrastructure and begin our SNP marketing program, but we are pleased to report that our strategic transition into a Medicare SNP insurer is now nearly complete."
"As the year has unfolded, we have become increasingly encouraged about prospects for 2007 Medicare Special Needs Plan business for several reasons and, consequently, we are comfortable once more to reiterate our revenue guidance for SNPs. Among the reasons for this encouragement are:
* Enrollment in South Dakota has continued to grow since the non-SNP
Medicare plan marketing periods ended in May, and as more and more
Medicare beneficiaries with chronic illnesses hit the prescription drug
Part D coverage gap, or "doughnut hole"
* The response to our test marketing campaign in New Jersey has been very
positive
* Our new benefit design and pricing has been well received by brokers of
the independent senior products community
* Successful contracting with two of the largest hospital/health systems
in New Jersey
* The New Jersey market includes gated communities that have a significant
concentration of Medicare beneficiaries, a marketing feature not
available in South Dakota."
"Medicare Advantage Special Needs Plans are new and exciting and we are convinced that our strategic focus on them represents a superior approach to the Medicare market. Our systems fully integrate improved medical management for physicians, coupled with patient directed disease management, robust reporting and other tools designed to achieve overall medical best practices that in turn produce improved health for patients and positive financial outcomes for our SNPs. We believe that Medicare SNPs are a meaningful part of Medicare Reform and expect that our successful future in that arena is now," Cox concluded.
About QMed, Inc.
QMed provides evidence-based clinical information management systems around the country to its health plan customers. The system incorporates Disease Management services to patients and decision support to physicians. The Company's QMedCare subsidiary specializes in serving high-risk populations of Medicare beneficiaries with its first project commencing in South Dakota in January 2006. Forward Health is QMed's subsidiary offering weight, obesity and health promotion programs. The Company has been selected in Demonstrations in the vast Medicare fee-for-service program. More information on QMed, Inc. can be obtained at http://www.qmedinc.com/, by calling (732) 544-5544 or by emailing .
QMED, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
August 31, 2006 November 30, 2005
ASSETS (unaudited)
Current assets
Cash and cash equivalents $2,726,196 $4,051,046
Investments 14,481,052 19,348,503
Accounts receivable, net of
allowances of $44,844 and $76,518,
respectively 1,878,714 3,377,495
Inventory, net of reserve 30,230 30,887
Prepaid expenses and other current assets 416,310 411,608
19,532,502 27,219,539
Property and equipment, net of
accumulated depreciation 1,055,563 1,058,295
Product software development costs, net 1,896,162 1,161,083
Restricted cash and cash equivalents,
non-current 705,881 --
Accounts receivable, non-current 337,239 271,809
Acquired intangibles, net 663,036 795,848
Other assets 127,760 128,794
Investment in joint ventures 27,193 37,998
$24,345,336 $30,673,366
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $2,071,247 $1,577,385
Medical claims reserve 165,755 --
Leases payable, current portion 93,106 146,483
Accrued salaries and commissions 413,700 721,792
Fees reimbursable to health plans 126,560 39,000
Contract billings in excess of revenue 1,448,361 744,743
Deferred warranty revenue 9,600 12,253
Income taxes payable -- 62,610
4,328,329 3,304,266
Leases payable - long term 20,141 76,005
Contract billings in excess of revenue,
long term 337,239 271,809
4,685,709 3,652,080
Commitments and Contingencies -- --
Stockholders' equity
Common stock $.001 par value;
40,000,000 shares authorized;
16,851,265 and 16,804,846 shares issued
and 16,829,265 and 16,782,846 outstanding,
respectively 16,851 16,805
Paid-in capital 52,766,121 51,219,617
Accumulated deficit (33,043,418) (24,118,472)
Accumulated other comprehensive loss
Unrealized loss on securities
available for sale (4,302) (21,039)
19,735,252 27,096,911
Less treasury stock at cost,
22,000 common shares (75,625) (75,625)
Total stockholders' equity 19,659,627 27,021,286
$24,345,336 $30,673,366
QMED, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three For the Three For the Nine For the Nine
Months Ended Months Ended Months Ended Months Ended
August 31, August 31, August 31, August 31,
2006 2005 2006 2005
Revenue $2,202,270 $5,504,634 $7,306,588 $15,723,017
Cost of revenue 1,371,709 1,827,313 4,951,164 5,499,320
Gross profit 830,561 3,677,321 2,355,424 10,223,697
Selling, general
and administrative
expenses 4,025,951 2,062,529 11,099,815 5,853,627
Research and
development
expenses 298,836 347,434 1,180,866 924,286
(Loss) income
from operations (3,494,226) 1,267,358 (9,925,257) 3,445,784
Interest expense (4,337) (6,967) (15,146) (21,052)
Interest income 201,833 140,371 577,152 261,653
Loss in operations
of joint ventures (18,927) (334,825) (57,365) (792,103)
Other income -- -- 450,000 2,849
(Loss) income
before income tax
provision (3,315,657) 1,065,937 (8,970,616) 2,897,131
(Provision) benefit
for income taxes (1,744) (73,000) 45,670 (158,400)
Net (loss)
income $(3,317,401) $992,937 $(8,924,946) $2,738,731
Basic (loss)
earnings per share
Weighted average
shares
outstanding 16,823,885 16,687,769 16,804,457 16,370,175
Basic (loss)
earnings per
share $(.20) $.06 $(.53) $.17
Diluted (loss)
earnings income
per share
Weighted average
shares
outstanding 16,823,885 18,559,698 16,804,457 18,343,191
Diluted (loss)
earnings per share $(.20) $.05 $(.53) $.15
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.
DATASOURCE: QMed, Inc.
CONTACT: Robert Mosby, QMed, Inc., +1-732-544-5544 x1107
Web site: http://www.qmedinc.com/