NTST Netsmart Technologies (MM)

Netsmart Announces First Quarter Results Revenues Increase 12%, Net Income Up 20% From First Quarter Fiscal 2003 GREAT RIVER, N.Y., May 6 /PRNewswire-FirstCall/ -- Netsmart Technologies, Inc. , a leading supplier of enterprise-wide software solutions for health and human services providers, today reported results for the first quarter ended March 31, 2004. Net income for the quarter ended March 31, 2004 was $325,000, or $0.06 per share (basic and diluted), as compared to $271,000 or $0.07 per share (basic) and $.06 per share (diluted), for the same period last year. Net income for the quarter ended March 31, 2004 increased by 20% over the quarter ended March 31, 2003. James Conway, CEO of Netsmart Technologies, Inc. stated, "We are very pleased with our 23rd consecutive quarter of profitability. Our income before taxes was $543,000 for the quarter ended March 31, 2004 as compared to $304,000 for the comparable quarter last year. This represents a 79% increase over last year, before any provision for taxes." Revenue for the quarter ended March 31, 2004 was $6,823,000 as compared to $6,119,000 for the quarter ended March 31, 2003, representing an increase of 12%. Working capital increased to $15,117,000 at March 31, 2004 from $14,714,000 at December 31, 2003. Recurring revenue for the quarter was $2,760,000, an increase of 27% from the $2,172,000 for the comparable quarter last year. The gross profit margin for the quarter was 50% as compared to 41% for the comparable quarter in 2003. Our firm order backlog at March 31, 2004 of $26.1 million is a record high. The recurring revenue component of the backlog is equal to 53% of the total. 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, 2004 2003 Revenue $6,823,000 $6,119,000 Net Income $325,000 $271,000 Net Income Per Share Basic $.06 $.07 Weighted Average Shares of Common Stock Outstanding Basic 5,318,000 3,957,000 Net Income Per Share Diluted $.06 $.06 Weighted Average Shares of Common Stock and Common Stock Equivalents Outstanding Diluted 5,572,000 4,356,000 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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