The company's automated and trusted workflow solutions enable enterprises and office professionals to employ rules-based electronic forms, intelligent routing and transaction management, electronic signing, content authentication, identity credentialing and verification and web and fax based communication capabilities. Customer benefits from the company's offerings include reduced costs, improved productivity and service levels, automated audit trails, enhanced compliance with regulatory requirements and the reduction of paper-based processes. The company has offices in the United States and Germany. In the United States we offer our patent pending content authentication technology in the form of the United States Postal Service® Electronic Postmark® (EPM). See USPS EPM

ADAT plans to achieve break-even through cost reduction and revenue acceleration.

Revenue Growth:
Authentidate will need a run-rate of 4 million-plus per quarter for cash flow break-even. Revenue in the March quarter was 1.7 million with US segment revenue (Inscrybe) increasing 18% sequentially. Growth Yr/Yr was 33%, thus accelerated in the recent quarter. Most of Authentidate’s customers are still in the initial – intermediate stage of implementation, thus revenues will continue to increase just from roll-out.

My thinking is that the current customer base is likely sufficient to generate the required level of sales for break-even. My theory is this is why ADAT is comfortable with stating its goal of break-even in the coming quarters. If they know a customer’s billing is (x) amount at (y)% implementation, then that ratio should hold as implementation nears 100%.

The major customers are Apria, American Home Patient, Lincare, Liberty Medical, and several others. These healthcare providers’ business models are largely driven on working-capital management. There is a long delay from the time services/products rendered to patients until reimbursement from Medicare/other insurers. Much of this delay stems from extensive paperwork and physician signatures that must be completed and collected before these agencies can be reimbursed. Authentidate’s services aid in drastically reducing days sales outstanding (DSO), hence working capital requirements.

Home medical equipment providers, such as Apria and American Home Patient, benefit significantly from using Inscrybe, in turn, they persuade physicians to sign-up. Some physicians using Inscrybe have then turned to agencies not using Inscrybe, and have recommended that they start using Authentidate’s platform. That illustrates a powerful, viral process in which adoption can easily and rapidly spread. (see MD interview).

Doug Guy, SVP at American Home Patient commented about incorporating Authentidate’s solution (ADAT PR 4/23/2007) "We are realizing significant operational efficiencies as a result of deploying the Inscrybe eCMN capabilities in our billing centers and branch locations. Over the past 12 months, we have seen a 65% reduction in turnaround time of documents processed by physician offices through Inscrybe, a significant reduction in unbilled dollars, and a marked improvement in internal document processing throughput. Besides a direct impact on our bottom line, it has improved the service experience for our physician and patient communities."?

Market Potential:
The market potential is massive. Enormous.