Exhibit 99.1
LANVISION SYSTEMS, INC.
News Release of LanVision Systems, Inc. Dated August 22, 2005
NEWS RELEASE
Visit our web site at: www.lanvision.com
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COMPANY CONTACT:
PAUL W. BRIDGE, JR.
Chief Financial Officer
(513) 794-7100
FOR IMMEDIATE RELEASE
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LANVISION SYSTEMS INC. REPORTS STRONG SECOND QUARTER FISCAL 2005 RESULTS
REVENUE INCREASED 59% COMPARED WITH Q2 FISCAL 2004
Cincinnati, Ohio, August 22, 2005 --- LanVision Systems, Inc. (NASDAQ: LANV)
today announced significantly improved financial results for the second quarter
and first six months ended July 31, 2005.
Revenues for the second quarter of fiscal 2005 were up 59% to $4,065,731
compared with $2,558,295 reported in the second quarter of last year. The
operating profit for the quarter was $547,196, compared with an operating loss
of ($83,992) in the second quarter of last year. The net income for the quarter
was $519,269, or $0.06 per basic and diluted common share, compared with a net
loss of ($462,328), or ($0.05) per basic and diluted common share in the second
quarter of last year.
Revenues for the first six months of fiscal 2005 were up 30% to $6,762,604
compared with $5,199,850 reported in the first six months of last year. The
operating profit for the first six months of was $293,078 compared with an
operating loss of ($125,639) in the first six months of last year. The net
income for the first six months was $242,750, or $0.03 per basic and diluted
common share, compared with net loss of ($883,391), or ($0.10) per basic and
diluted common share in the first six months of last year.
Second Quarter Highlights included:
- The announcement of the signing of a new contract with Sarasota
Memorial Hospital a fully JCAHO accredited 845 bed hospital, located
on the west coast of Florida and which is the second largest public
hospital in the state of Florida.
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Sarasota Memorial will implement the Company's Health Information
Management, Patient Financial Services, Supply Chain Management and
Human Resource workflows and document management solutions. The
contract calls for an enterprise license for the deployment of
Streamline Health's solutions throughout the Sarasota Memorial Health
Care System and will seamlessly integrate with current Eclipsys
Sunrise(TM) Clinical Manager, Access Manager/Patient Financial
Manager, and PeopleSoft applications.
- The announcement of the signing of a new contract with Oregon Health &
Science University (OHSU) for its Health Information Management and
Patient Financial Services workflows and document management
solutions. The contract calls for an unlimited use license for the
large-scale deployment of the company's solutions throughout the OHSU
enterprise. Located in Portland Oregon, the OHSU Health System
includes OHSU Hospital, Doernbecher Children's Hospital, and dozens of
primary care and specialty clinics serving every county in Oregon. The
health system also includes four schools, multiple research institutes
and several outreach and community service units. In addition, OHSU
has a research and education West Campus in Hillsboro, and multiple
education and patient care facilities throughout the state.
- The announcement of the renewal of two existing remote application
hosting services contracts for the company's comprehensive workflow
and document management services. The two contracts are valued at
approximately $6.3 million in recurring subscription revenues over the
terms of the agreements.
Brian Patsy, LanVision's Chairman and Chief Executive Officer, stated, "The
planned investment for 2005 in our sales and marketing programs and
infrastructure have begun to pay dividends. As a result of the significant sales
achievements noted above, during the first half of the current year our software
sales increased by more than $1 million and our Application Hosting Revenues
continued to increase by 18% or $227 thousand when compared to the prior
comparable period. These increases in the highly profitable segments of our
business resulted in a $418 thousand improvement in operating profitability for
the first six months notwithstanding the almost $800 thousand in planned
increases in operating costs. "Also, the retirement of our high interest rate
debt in July 2004 resulted in a reduction of our interest expense for the first
six months of this year by more than $718,000."
Mr. Patsy continued, "Our sales pipeline is very strong and continues to grow as
the healthcare market looks for ways to streamline inefficient business
processes to lower expense and improve patient care."
Mr. Patsy Concluded, "For the first half of our fiscal year, we are
approximately 4 percent ahead of our business plan for anticipated revenue
growth, and over $1 million ahead of plan for operating profitability. We
believe that we are on course to achieve continuing improved operating results
in the final six months of the current fiscal year,
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and we continue to feel comfortable with our guidance regarding approximately 25
percent revenue growth for the entire year."
CONFERENCE CALL INFORMATION
In conjunction with LanVision's Second Quarter Fiscal 2005 earnings release, you
are invited to listen to its conference call which will be held at 10:00 a.m.
eastern time, on Tuesday August 23, 2005. The call will feature remarks from J.
Brian Patsy, Chief Executive Officer, William A. Geers, Chief Operating Officer
and Paul W. Bridge, Jr., Chief Financial Officer.
To access the call, dial 703-639-1163 approximately five minutes prior to the
start of the call. To access the call via the webcast, go to www.lanvision.com
before the call is scheduled to begin. The webcast will also be available on our
web site for 30 days.
ABOUT LANVISION SYSTEMS, INC.
LanVision Systems, Inc., which does business under the name Streamline Health,
is a leading supplier of workflow and document management tools, applications
and services that assist strategic business partners, healthcare organizations,
and customers to create and improve operational efficiencies through business
process re-engineering and automating demanding document-intensive environments.
The company's workflow-based services offer solutions to inefficient and
labor-intensive healthcare business processes throughout the revenue cycle, such
as chart coding, abstracting and completion, remote physician order processing,
pre-admission registration scanning and signature capture, insurance
verification, secondary billing services, explanation of benefits processing and
release of information processing. The company's solutions also address the
document workflow needs of the Human Resource and Supply Chain Management
departments of the healthcare enterprise. All solutions are available for
purchase or through a remote hosting services model that better matches
customers' capital or operating budget needs.
Streamline Health's solutions create a permanent document-based repository of
historical health information that is complementary and can be seamlessly
integrated with existing disparate clinical, financial and administrative
information systems, providing convenient electronic access to all forms of
patient information from any location, including access using a web-browser
through the Intranet/Internet. These integrated systems allow providers and
administrators to link systems with documents, which can dramatically improve
the availability of patient information while decreasing direct costs associated
with document retrieval, work-in-process, chart processing, document retention,
and archiving.
Streamline Health provides remote hosting services to various healthcare
providers including University Hospital, a member of The Health Alliance of
Greater Cincinnati, and Children's Medical Center of Columbus, OH. In addition,
the Company has installed its workflow and document management solutions at
leading healthcare providers including Stanford Hospital and Clinics, Albert
Einstein Healthcare Network, Beth Israel Medical Centers, University of
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Pittsburgh Medical Center, Medical University Hospital Authority of South
Carolina, and Memorial Sloan-Kettering Cancer Center.
For additional information on LanVision, please visit our website at
http://www.lanvision.com.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
STATEMENTS MADE BY LANVISION THAT ARE NOT HISTORICAL FACTS ARE FORWARD-LOOKING
STATEMENTS THAT ARE SUBJECT TO RISKS AND UNCERTAINTIES. LANVISION'S FUTURE
FINANCIAL PERFORMANCE COULD DIFFER MATERIALLY FROM EXPECTATIONS OF MANAGEMENT
AND FROM RESULTS REPORTED NOW OR IN THE PAST. FACTORS THAT COULD CAUSE
LANVISION'S FINANCIAL PERFORMANCE TO SO DIFFER INCLUDE, BUT ARE NOT LIMITED TO,
THE IMPACT OF COMPETITIVE PRODUCTS AND PRICING, PRODUCT DEVELOPMENT, RELIANCE ON
STRATEGIC ALLIANCES, AVAILABILITY OF PRODUCTS PROCURED FROM THIRD PARTY VENDORS,
THE HEALTHCARE REGULATORY ENVIRONMENT, FLUCTUATIONS IN OPERATING RESULTS, AND
OTHER RISKS DETAILED FROM TIME TO TIME IN LANVISION'S FILINGS WITH THE U.S.
SECURITIES AND EXCHANGE COMMISSION.
(C)2005 LanVision Systems, Inc., Cincinnati, OH 45242.
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LANVISION SYSTEMS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
July 31, July 31,
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2005 2004 2005 2004
----------- ----------- ----------- -----------
Revenues:
Systems sales $ 1,571,893 $ 165,467 $ 1,712,697 $ 452,350
Services, maintenance and support 1,753,322 1,755,512 3,552,346 3,477,170
Application-hosting services 740,516 637,316 1,497,561 1,270,330
----------- ----------- ----------- -----------
Total revenues 4,065,731 2,558,295 6,762,604 5,199,850
Operating expenses:
Cost of systems sales 666,753 241,238 946,940 600,150
Cost of services, maintenance and support 742,634 711,236 1,503,998 1,391,481
Cost of application-hosting services 237,793 221,147 488,695 437,795
Selling, general and administrative 1,291,927 924,805 2,348,808 1,838,273
Product research and development 579,428 543,791 1,181,085 1,057,790
----------- ----------- ----------- -----------
Total operating expenses 3,518,535 2,642,217 6,469,526 5,325,489
----------- ----------- ----------- -----------
Operating income (loss) 547,196 (83,922) 293,078 (125,639)
Other income expense:
Interest income 20,097 15,091 37,891 39,194
Interest expense (31,024) (393,497) (71,219) (796,946)
----------- ----------- ----------- -----------
Earnings (loss) before taxes 536,269 (462,328) 259,750 (883,391)
Income taxes (17,000) - (17,000) -
=========== =========== =========== ===========
Net earnings (loss) $ 519,269 $ (462,328) $ 242,750 $ (883,391)
=========== =========== =========== ===========
Basic net earnings (loss) per common share $ 0.06 $ (0.05) $ 0.03 $ (0.10)
=========== =========== =========== ===========
Diluted net earnings (loss) per common share $ 0.06 $ (0.05) $ 0.03 $ (0.10)
=========== =========== =========== ===========
Number of shares used in per common
Share computation - basic 9,108,146 9,067,700 9,097,564 9,051,973
=========== =========== =========== ===========
Number of shares used in per common
Share computation - diluted 9,286,607 9,067,700 9,306,761 9,051,973
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LANVISION SYSTEMS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
July 31, July 31, January 31,
Assets 2005 2004 2005
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Current assets:
Cash and cash equivalents (restricted by long-term debt agreement) $ 4,167,521 $ 4,538,655 $ 4,181,073
Accounts receivable 1,777,285 1,436,999 2,101,846
Contract receivables 1,396,192 1,826,147 1,404,364
Allowance for doubtful accounts (200,000) (400,000) (200,000)
Other, including deferred federal tax asset 788,297 424,361 686,116
------------ ------------ ------------
Total current assets 7,929,295 7,826,162 8,173,399
Property and equipment:
Computer equipment 1,732,431 2,660,267 1,501,796
Computer software 938,232 947,654 832,304
Office furniture, fixtures and equipment 726,215 1,167,497 537,137
Leasehold improvements 520,322 157,492 37,504
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3,917,200 4,932,910 2,908,741
Accumulated depreciation and amortization (2,319,303) (3,941,069) (1,996,129)
------------ ------------ ------------
1,597,897 991,841 912,612
Capitalized software development costs, net of accumulated
Amortization of $3,633,230, $2,916,728 and $3,233,228 respectively 2,256,699 1,873,201 2,056,701
Other, primarily deferred federal tax asset 708,241 633,036 850,523
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$ 12,492,132 $ 11,324,240 $ 11,993,235
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Liabilities, convertible redeemable preferred stock and stockholders' equity
Current liabilities:
Accounts payable $ 858,934 $ 294,021 $ 886,090
Accrued compensation 409,801 253,537 276,292
Accrued other expenses 742,323 626,451 719,135
Deferred revenues 2,191,968 2,102,374 2,231,442
Current portion of capitalized leases 52,406 227,644 168,121
Current portion of long term-debt 1,000,000 1,166,667 -
------------ ------------ ------------
Total current liabilities 5,255,432 4,670,694 4,281,080
Non-current portion of long-term debt 1,000,000 2,333,333 2,000,000
Non-current portion of lease incentive 237,091 - -
Non-current portion of capitalized leases - 52,406 -
Stockholders' equity:
Convertible redeemable preferred stock, $0.01 par value per share,
5,000,000 shares authorized - - -
Common stock, $0.01 par value per share, 25,000,000 shares Authorized,
9,120,541 shares, 9,081,701 shares and 9,084,535 shares issued,
respectively 91,205 90,817 90,845
Capital in excess of par value 35,047,305 34,999,709 35,002,961
Accumulated (deficit) (29,138,901) (30,822,719) (29,381,651)
------------ ------------ ------------
Total stockholders' equity 5,999,609 4,267,807 5,712,155
------------ ------------ ------------
$ 12,492,132 $ 11,324,240 $ 11,993,235
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