BERKELEY HEIGHTS, N.J., May 14 /PRNewswire-FirstCall/ -- Authentidate Holding Corp. (Nasdaq: ADAT), a worldwide provider of secure Health Information Exchange and workflow management services, today announced financial results for the fiscal 2009 third quarter ended March 31, 2009.

Operating highlights for the third quarter of fiscal 2009:

• Three new client agreements announced for Inscrybe Healthcare, including Total e-Medical, UroMed and SuperCare
• Announced the termination of merger agreement with Parascript
• Company repurchases 547,000 shares of common stock
• Members of the management team and board of directors purchased approximately one million shares of common stock

'Our financial results in the third quarter of 2009 reflect further revenue growth and a lower net loss. These improved results are attributable to new and existing customers ramping up their usage of our Inscrybe Healthcare services and certain cost cutting measures implemented in 2008,' stated Ben Benjamin, President of Authentidate. 'During the quarter we have seen positive results from our marketing efforts and announced three new client agreements, all of which are in the process of being implemented. We have also seen other clients expand their use of our services through the addition of new modules during the fiscal year.'

Mr. Benjamin continued, 'During the fiscal third quarter we made significant progress with new initiatives, which we previously announced in early April. These initiatives include our arrangement with Nortel and our telehealth joint venture, ExpressMD. We anticipate revenue from the Nortel partnership to start soon and revenue from sales of ExpressMD's system and services to start in the fourth quarter of fiscal 2009. These initiatives allow Inscrybe Healthcare to address new, large markets within the healthcare industry without requiring major investments in development.'

Total revenue for the three months ended March 31, 2009 was approximately $2,015,000 compared to $1,683,000 for the same period last year. These results reflect an increase of approximately 31% in U.S. revenues and approximately 13% from our German operations from new customers and increases in transaction volume. Compared to the second quarter of fiscal 2009, total revenues increased approximately 26% reflecting the timing of contract awards and an increase in transaction volume during the current quarter.

Net loss for the third quarter of fiscal 2009 decreased to $2,095,000, or $0.06 per share, compared to $3,119,000, or $0.09 per share, for the same period last year. The net loss for the prior year period includes approximately $492,000, or $0.01 per share, for accrued severance and professional service expenses.

Total revenue for the nine months ended March 31, 2009 increased 21% to approximately $5,309,000 compared to $4,392,000 for the same period last year. These results reflect an increase of approximately 33% in U.S. revenues and growth from our German operations of approximately 14%, reflecting the same trends as the quarter.

Net loss for the nine months ended March 31, 2009 decreased to $7,095,000, or $0.21 per share, compared to $13,178,000, or $0.38 per share, for the same period last year. The net loss for the current period includes the write-off of approximately $900,000, or $0.03 per share, of deferred deal expenses related to the termination of the Parascript merger. The prior year period includes approximately $3,870,000, or $0.11 per share, for incremental legal fees, accrued severance and professional service expenses.

As of March 31, 2009, the company's cash and cash equivalents, and marketable securities totaled $9,173,000 and deferred revenue totaled $1,411,000.

'Although we cannot predict the revenue potential for our new Inscrybe customers or other business developments discussed above, we remain confident in the direction of the company as evidenced by the purchase in March, by certain members of the board of directors and management team, including myself, of 990,000 shares of the company's common stock from a large shareholder. This was in addition to the company purchasing 547,000 shares from the same investor,' concluded Mr.