Netsmart Announces First Quarter Results
May 11 2005 - 3:19PM
PR Newswire (US)
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/
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