Netsmart Announces Second Quarter Results Revenues increase 9% from
Second Quarter Fiscal 2003 GREAT RIVER, N.Y., Aug. 10
/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 second quarter ended June 30, 2004. James Conway,
CEO of Netsmart Technologies, Inc. stated, "We are very pleased
with our 24th consecutive quarter of profitability. Our income
before taxes was $644,000 for the quarter ended June 30, 2004 as
compared to $506,000 for the comparable quarter last year. This
represents a 27% increase over last year, before any provision for
taxes. While we accrued taxes at an effective tax rate of 31% of
pre-tax income for the six months ended June 30, 2004, we actually
expect to pay taxes at a rate of 6% due to the application of net
operating loss deductions on our tax returns." Revenue for the
quarter ended June 30, 2004 was $7,189,000 as compared to
$6,589,000 for the quarter ended June 30, 2003, representing an
increase of 9 percent. Net income for the quarter ended June 30,
2004 was $493,000, or $0.09 per share (basic and diluted), as
compared to $521,000 or $0.13 per share (basic) and $.12 per share
(diluted), for the same period last year. The reduction in net
income and earnings per share was due to the fact that the
provision for taxes in the quarter ended June 30, 2004 was $151,000
as compared to a tax benefit of $15,000 for the same period last
year. Additionally, there were approximately 1.2 million additional
shares outstanding for the quarter ended June 30, 2004 as compared
to the same period last year. Revenue for the six months ended June
30, 2004 was $14,012,000 as compared to $12,708,000 for the six
months ended June 30, 2003, representing an increase of 10 percent.
Net income for the six months ended June 30, 2004 was $818,000, or
$.15 per share (basic and diluted), as compared to $793,000, or
$.20 per share (basic) and $.18 per share (diluted) for the same
period last year. Working capital increased to $15,628,000 at June
30, 2004 from $14,714,000 at December 31, 2003. Recurring revenue
for the quarter ended June 30, 2004 was $2,948,000, an increase of
30% from the $2,274,000 for the comparable quarter last year. The
gross profit margin for the quarter was 54% as compared to 42% for
the comparable quarter in 2003. Our firm order backlog at June 30,
2004 was $25.4 million as compared to $25.3 million at June 30,
2003. The recurring revenue component of the June 30, 2004 backlog
is equal to 55% of the total backlog. 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 and Six Months Ended
June 30, Three Months Six Months 2004 2003 2004 2003 Revenue
$7,189,000 $6,589,000 $14,012,000 $12,708,000 Net Income(1)
$493,000 $521,000 $818,000 $793,000 Net Income Per Share Basic $.09
$.13 $.15 $.20 Weighted Average Shares of Common Stock Outstanding
Basic 5,336,000 4,077,000 5,326,000 4,008,000 Net Income Per Share
Diluted $.09 $.12 $.15 $.18 Weighted Average Shares of Common Stock
and Common Stock Equivalents Outstanding Diluted 5,562,000
4,417,000 5,558,000 4,377,000 (1) The Company's tax provision for
2003 has been reduced in all periods as a result of available net
operating loss carry-forwards. In addition, the Company recognized
a $100,000 tax benefit during the June 2003 Quarter as a result of
a further reduction in its deferred tax asset valuation allowance.
DATASOURCE: Netsmart Technologies, Inc. CONTACT: James Conway, CEO
of Netsmart Technologies, Inc., 1-800-451-7503 ; or Stuart Fine,
Carpe DM, Inc., +1-908-490-0075, , for Netsmart Technologies, Inc.
Web site: http://www.netsmartech.com/
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