"We delivered profitable operating results even in a challenging economic environment while investing and repositioning the company for long-term growth," said Kevin Noland, President and Chief Executive Officer of A.D.A.M. "We are very pleased with 19 percent growth in our health content licensing business which is a result of people and product investments we made previously. During 2008, we continued to invest in sales, marketing and customer service functions for Benergy as we look to grow our important broker channel and capitalize on the opportunities we see with larger employers. In addition, we replaced several internal product offerings with a broader suite of products that allows us to provide a more comprehensive product set for our broker and employer clients through new outsourced relationships. While this was underway, A.D.A.M. continued to generate positive operating cash flows and ended the year in a solid financial position. Based on the strength of our business model, we secured new long-term debt financing in the fourth quarter and with a lower cash interest rate."

In a release on March 17, the company noted:

Fourth Quarter Highlights

License revenues for the fourth quarter ended December 31, 2008, which include both health content and Benergy products, were $6,367,000 as compared to $6,182,000 for the same period of 2007, an increase of 3 percent, primarily as a result of growth in health content licensing.

Total revenues for the fourth quarter ended December 31, 2008 were $7,406,000 as compared to $7,633,000 for the same period of 2007, a decrease of 3 percent. Fourth quarter revenues were primarily impacted as a result of a professional services contract relating to the Company's education business in excess of $350,000 that occurred in the prior year period.

Net loss for the fourth quarter ended December 31, 2008 was $2,007,000 or $0.19 per share on a fully diluted basis as compared to a profit of $1,824,000 or $0.17 per share on a fully diluted basis for the same period of 2007. The fourth quarter of 2008 included charges of $3,006,000 relating to facility consolidation and loan refinance expenses, while 2007 included an income tax benefit of $1,510,000, related to the Company's utilization of its net operating loss carryforward.

Adjusted non-GAAP operating income for the fourth quarter ended December 31, 2008 was $1,642,000, or 22 percent of revenues, compared to $1,624,000, or 21 percent, for the same period in 2007.