Company Reaffirms Its Financial Guidance For 2008
BIRMINGHAM, Ala., May 12 /PRNewswire-FirstCall/ -- Emageon Inc. (Nasdaq:EMAG) today reported financial results for its first quarter ended March 31,2008.
Revenue for the first quarter of 2008 was $19.3 million compared to firstquarter 2007 revenue of $27.4 million. Net loss for the quarter was $4.6million, or $0.21 per share, compared to a net loss in the quarter ended March31, 2007 of $1.8 million, or $0.09 per share. The first quarter 2008 net lossincluded a charge of $0.8 million, or $0.04 per share, for employee severanceand associated expenses.
At March 31, 2008, the Company's cash totaled $18.3 million compared to$17.0 million at December 31, 2007. Net cash provided by operations in firstquarter 2008 was $2.6 million compared to a net usage of cash in operations of$4.0 million in first quarter 2007. The Company has not drawn on its $15.0million line of credit and has total debt obligations of less than $0.1million.
The Company's net loss excluding employee severance charges and non-cashcharges for depreciation, amortization of intangible assets, and stock-basedcompensation expenses was $0.9 million, or $0.04 per share, compared to firstquarter 2007 net income excluding these expenses of $1.3 million, or $0.06 pershare. These measures of earnings were not determined in accordance withgenerally accepted accounting principles ('GAAP'). A reconciliation ofearnings determined under GAAP to earnings exclusive of these expenses andnon-cash charges is included below. Management believes that earningsexclusive of these expenses, when viewed in addition to the Company's reportedGAAP results, provides an additional meaningful measure of operatingperformance, enabling investors to more thoroughly evaluate currentperformance in comparison to past performance. This information willnecessarily differ from comparable information that may be provided by othercompanies and should not be considered in isolation or as an alternative tothe Company's operating and other financial information determined under GAAP.
The Company also reaffirmed its February 20, 2008 financial guidance forthe full year 2008 and provided guidance for the quarter ending June 30, 2008.For the full year, the Company continues to expect sales order bookings in therange of $65 to $70 million, revenue in the range of $87 to $89 million, a netloss per share exclusive of restructuring charges in the range of $0.20 to$0.23 per share, and earnings per share exclusive of depreciation,amortization, and stock-based compensation ('non-cash charges') andrestructuring charges in the range of $0.23 to $0.27 per share. For the secondquarter of 2008, the Company expects revenue in the range of $17.5 to $18.5million, net loss per share exclusive of restructuring charges in the range of$0.18 to $0.20 per share, and net loss per share exclusive of non-cash chargesand restructuring charges in the range of $0.06 to $0.08 per share.
'Our first quarter results are reflective of the difficult environment inwhich we are currently operating,' said Chuck Jett, Chairman and CEO ofEmageon. 'High penetration rates for our core radiology products in the largehospital sector and a more constrained capital spending willingness by ourexisting and prospective customers are realities that we must manage through.We were pleased to generate positive cash flow from operations in the firstquarter. Our balance sheet is strong, and we are continuing to invest in oursoftware products and to position ourselves to win market share in the nextcycle.'
Conference Call. Emageon will host a conference call for investors on May12, 2008, at 10:00 A.M. EDT to discuss its financial results for the quarter.The call will be webcast by Thomson/CCBN and can be accessed at Emageon's website at http://investor.emageon.com . The dial-in telephone number for thecall is 888-679-8035 (internationally, at 617-213-4848), passcode 55905402.Replay is available from 11:00 A.M. EDT, May 12, 2008, until 11:59 P.M. EDT,May 22, 2008, at 888-286-8010 (internationally, at 617-801-6888), passcode44165855.
The webcast is also being distributed through the Thomson StreetEventsNetwork to both institutional and individual investors. Individual investorscan listen to the call at www.fulldisclosure.com , Thomson/CCBN's individualinvestor portal, powered by StreetEvents.
