LANV Lanvision Systems (MM)

CINCINNATI, May 22 /PRNewswire-FirstCall/ -- LanVision Systems, Inc. (NASDAQ:LANV), which does business under the name Streamline Health, today announced the operating results for the first quarter ended April 30, 2006. Revenues for the first quarter were $3.8 million, a record first quarter and a 43% increase when compared with $2.7 million reported in the comparable prior period. The improvement was the result of a significant increase in System Sales in the current quarter. The operating loss for the first quarter was $71 thousand, compared with an operating loss of $254 thousand in the first quarter of last year. The decreased operating loss was a result of the significant increase in System Sales in the current quarter, offset to some extent by the planned increase in operating expenses. The net loss for the first quarter was $80 thousand, or $0.01 per basic and diluted share, when compared with a net loss of $277 thousand, or $0.03 per basic and diluted share in the first quarter of last year. J. Brian Patsy, president and chief executive officer, stated, "We are very pleased with our record first quarter performance, which was ahead of our internal operating plan. During our first quarter," Mr. Patsy continued, "we closed a large transaction through our largest remarketing partner, which had previously been delayed as a result of the uncertainty surrounding the recent consolidation within the healthcare IT marketplace. Our 2006 operating plan calls for modest additional investment in people and technology necessary to take advantage of the market opportunities we see in the health care industry for process improvements through the use of our advanced workflow and document management technologies. Although our significant growth in infrastructure as a part of our 2005 operating plan resulted in increased operating expenses during our first quarter of 2006, we believe that this is a strategic investment in our future. The return on this investment has begun with the significant increase in first quarter system sales, including the addition of one major new client and a significant expansion of our system at an existing client, which resulted in the record first quarter revenues." Mr. Patsy concluded, "We are very encouraged with the progress the Company has made during the last twelve months in developing a significantly larger pipeline of qualified prospects. We anticipate that we should be able to achieve our 2006 operating plans which call for approximately a 25% increase in annual revenues when compared to our prior fiscal year. Accordingly, our efforts continue to produce positive results, and we believe that our momentum is building for the remainder of the year and beyond." CONFERENCE CALL INFORMATION The first quarter conference call will be held at 10:00 a.m. Eastern Time, on Tuesday May 23, 2006. The call will feature remarks from J. Brian Patsy, Chief Executive Officer, William A. Geers, Chief Operating Officer and Paul W. Bridge, Jr., Chief Financial Officer. To access the call via the webcast, go to http://www.lanvision.com/ or http://www.streamlinehealth.net/ approximately twenty minutes before the call is scheduled to begin. You will need to register as well as download the necessary audio software. The webcast will also be available on the web site for 30 days. About LanVision Systems dba Streamline Health Streamline Health is a leading supplier of workflow and document management tools, applications and services that assist strategic business partners, healthcare organizations, and customers to create and improve operational efficiencies through business process re-engineering and automating demanding document-intensive environments. The company's workflow- based services offer solutions to inefficient and labor-intensive healthcare business processes throughout the revenue cycle, such as chart coding, abstracting and completion, remote physician order processing, pre-admission registration scanning and signature capture, insurance verification, secondary billing services, explanation of benefits processing and release of information processing. The company's solutions also address the document workflow needs of the Human Resource and Supply Chain Management departments of the healthcare enterprise. All solutions are available for purchase or through a remote hosting services model that better matches customers' capital or operating budget needs. Streamline Health's solutions create a permanent document-based repository of historical health information that is complementary and can be seamlessly integrated with existing disparate clinical, financial and administrative information systems, providing convenient electronic access to all forms of patient information from any location, including access using a web-browser through the Intranet/Internet. These integrated systems allow providers and administrators to link systems with documents, which can dramatically improve the availability of patient information while decreasing direct costs associated with document retrieval, work-in-process, chart processing, document retention, and archiving. For additional information, please visit our website at http://www.streamlinehealth.net/. Safe Harbor statement under the Private Securities Litigation Reform Act of 1995 Statements made by LanVision Systems, Inc. that are not historical facts are forward-looking statements that are subject to risks and uncertainties. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements, included herein. These risks and uncertainties include, but are not limited to, converting pipeline opportunities into signed agreements, the impact of competitive products and pricing, product demand and market acceptance, new product development, key strategic alliances with vendors that resell LanVision products, the ability of the Company to control costs, availability of products produced from third party vendors, the healthcare regulatory environment, healthcare information systems budgets, availability of healthcare information systems trained personnel for implementation of new systems, as well as maintenance of legacy systems, fluctuations in operating results and other risks detailed from time to time in the LanVision Systems, Inc. filings with the U. S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly release the results of any revision to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Visit our web site at: http://www.lanvision.com/ LANVISION SYSTEMS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED Three Months Ended April 30, 2006 2005 Revenues: Systems sales $1,208,662 $140,804 Services, maintenance and support 1,828,267 1,799,024 Application-hosting services 811,494 757,045 Total revenues 3,848,423 2,696,873 Operating expenses: Cost of systems sales 626,407 280,187 Cost of services, maintenance and support 838,672 761,364 Cost of application-hosting services 280,230 250,902 Selling, general and administrative 1,414,878 1,056,881 Product research and development 759,679 601,657 Total operating expenses 3,919,866 2,950,991 Operating ( loss ) (71,443) (254,118) Other income (expense): Interest income 32,991 17,794 Interest (expense) (41,426) (40,195) Net (loss) $(79,878) $(276,519) Basic net (loss) per common share $(0.01) $(0.03) Diluted net (loss) per common share $(0.01) $(0.03) Number of shares used in basic per common share computation 9,168,335 9,087,164 Number of shares used in diluted per common share computation 9,168,335 9,087,164 LANVISION SYSTEMS, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS UNAUDITED April 30, Assets 2006 2005 Current assets: Cash and cash equivalents $3,204,398 $2,818,347 Accounts receivable, net of allowance for doubtful accounts of $200,000, respectively 1,850,397 2,643,943 Unbilled receivables 2,578,577 1,240,979 Prepaid expenses 516,990 414,559 Deferred tax assets 601,000 309,000 Total current assets 8,751,362 7,426,828 Property and equipment: Computer equipment 2,196,061 1,627,491 Computer software 1,056,892 865,985 Office furniture, fixtures and equipment 775,957 702,387 Leasehold improvements 522,863 509,76 4,551,773 3,705,630 Accumulated depreciation and amortization (2,859,860) (2,153,803) 1,691,913 1,551,827 Non-current unbilled receivables 728,541 - Capitalized software development costs, net of accumulated amortization of $4,304,066 and $3,433,229, respectively 2,835,862 2,156,700 Other, including deferred tax assets 1,312,936 701,091 $15,320,614 $11,836,446 Liabilities and stockholders' equity Current liabilities: Accounts payable $986,418 $523,456 Accrued compensation 368,514 342,382 Accrued other expenses 663,509 710,602 Deferred revenues 2,499,873 2,452,096 Current portion of long-term debt 1,000,000 - Current portion of capitalized leases 86,425 110,745 Total current liabilities 5,604,739 4,139,281 Non-current portion of capitalized leases 124,884 - Non-current lease incentives 279,454 251,909 Long-term debt 1,000,000 2,000,000 Stockholders' equity: Preferred stock, $0.01 par value per share, 5,000,000 shares authorized, no shares issued - - Common stock, $0.01 par value per share, 25,000,000 shares authorized, 9,173,708 and 9,093,535 shares issued, respectively 91,737 90,935 Capital in excess of par value 35,130,256 35,012,491 Accumulated (deficit) (26,910,456) (29,658,170) Total stockholders' equity 8,311,537 5,445,256 $15,320,614 $11,836,446 LANVISION SYSTEMS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED Three Months 2006 2005 Operating activities: Net earnings (Loss) $(79,878) $(276,519) Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 463,910 357,675 Share-based compensation expense 22,967 - Cash provided by (used for) assets and liabilities: Accounts, contract and installment receivables (42,566) (578,712) Other assets (150,259) (37,443) Accounts payable and accrued expenses (920,796) (364,350) Deferred revenues (117,311) 220,654 Net cash (used for) operating activities (823,933) (678,695) Investing activities: Purchases of property and equipment (182,175) (470,889) Capitalization of software development costs (399,999) (300,000) Other (20,150) 134,614 Net cash (used for) investing activities (602,324) (636,275) Financing activities: Payment of capitalized leases (20,693) (57,376) Exercise of stock options and stock purchase plan 17,129 9,620 Net cash (used for) financing activities (3,564) (47,756) Increase (Decrease) in cash and cash equivalents (1,429,821) (1,362,726) Cash and cash equivalents at beginning of year 4,634,219 4,181,073 Cash and cash equivalents at end of year $3,204,398 $2,818,347 Supplemental cash flow disclosures: Interest paid $41,425 $40,598 Income taxes paid (refund) $38,300 $(4,882) Leasehold improvements (included in property and equipment) paid for by the landlord as a lease inducement $- $326,000 DATASOURCE: LanVision Systems, Inc. CONTACT: Paul W. Bridge, Jr., Chief Financial Officer of LanVision Systems, Inc., +1-513-794-7100 Web site: http://www.lanvision.com/ http://www.streamlinehealth.net/

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