Exhibit 99.2
[CLAIMSNET.COM LOGO]
For more information, please contact:
Paul Miller
Claimsnet.com
(972) 458-1701
pwmiller@claimsnet.com
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FOR IMMEDIATE RELEASE:
Claimsnet.com Reports First Quarter 2002 Results
DALLAS - May 16, 2002 - Claimsnet.com inc. (OTCBB: CLAI.OB; BSE: CLAI), a
leading provider of Internet-based business to business solutions for the
healthcare industry, today reported its results for the first quarter of fiscal
2002, which ended March 31, 2002.
For the quarter ended March 31, 2002, the Company reported revenues of $315,000
as compared to $532,000 in the same period of 2001. The Company's April 2001
amended agreement with McKesson Corporation was the primary cause of the revenue
decrease from the prior year period. The Company's net loss for the quarter
ended March 31, 2002 was $1,102,000, or $0.10 per share, versus a loss of
$1,316,000, or $0.15 per share, for the same period in 2001.
The Company's cost of revenues decreased to $560,000 for the quarter from
$910,000 in 2001 and operating expenses for the quarter declined to $855,000 as
compared to $939,000 in the year earlier period. The 2001 quarter included a
$316,000 charge to cost of revenues and a $40,000 charge to selling, general and
administrative expenses also related to the amendment of the McKesson agreement.
"The effect of the revised McKesson relationship disguised the positive
performance in the current quarter" stated Paul W. Miller, the Company's Chief
Executive Officer. "Revenues from all other sources actually increased 30% from
the prior year quarter and our continued effort to control and reduce costs has
resulted in lower losses."
On March 12, 2002 the Company announced that a number of changes had been
implemented to significantly improve financial performance, including the
voluntary resignation of Bo W. Lycke as President and Chief Executive Officer in
order to reduce executive compensation and the appointment of Mr. Miller, who
had been serving in the capacity of Chief Operating Officer and Chief Financial
Officer, to succeed him. The Company also implemented a number of staff
reductions along with salary reductions for management personnel and certain
employees and announced that steps were being taken to reduce other operating
expenses.
The Company has continued to receive financing from a Zurich, Switzerland based
investment group through the sale of preferred stock totaling $826,000 since
January 1, 2002. "Our investors are supporting us as the evolution of our
revised marketing strategy to provide services and software to larger volume
processors of claims is continuing to show signs of promise," stated Mr. Miller.
"The industry is finally starting to realize that technologies that enable cost
savings are both crucial and available. The forthcoming HIPAA legislation
deadlines are nearing and we are seeing a material increase in our prospective
customers' interest in implementing these solutions."
Claimsnet.com inc. is a leading provider of Internet-based, business-to-business
solutions for the healthcare industry, including distinctive, advanced ASP
technology for online healthcare transaction processing. Headquartered in
Dallas, Claimsnet.com offers proprietary systems that are distinguished by ease
of use, customer care, security and measurable cost advantages. More information
on Claimsnet.com can be found at the Company's web site at www.claimsnet.com.
Safe Harbor Statement Under the Private Securities Litigation Act 1995 - With
the exception of historical information, the matters discussed in this press
release are forward looking statements that involve a number of risks and
uncertainties. The actual future results of the company could differ
significantly from those statements. Factors that could cause or contribute to
such differences include, but are not limited to, maintaining access to external
sources of capital, regulatory actions, success of marketing strategies, actions
of the Company's competitors, suppliers and distribution channels, employee
retention, and continued use of the Internet. Further information on the
Company's risk factors is contained in the Company's quarterly, annual, and
other periodic reports as filed with the Securities and Exchange Commission.
[Tables to Follow]
CLAIMSNET.COM INC. AND SUBSIDIARY
SUMMARY OPERATIONS STATEMENT INFORMATION
(In thousands except per share data)
Three Months Ended
March 31,
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2002 2001
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REVENUES $ 315 $ 532
COST OF REVENUES $ 560 $ 910
GROSS LOSS $ (245) $ (378)
RESEARCH AND DEVELOPMENT $ 95 $ 182
SELLING, GENERAL AND ADMINISTRATIVE $ 760 $ 757
LOSS FROM OPERATIONS $ (1,100) $ (1,317)
NET LOSS $ (1,102) $ (1,316)
BASIC AND DILUTED NET LOSS
PER COMMON SHARE $ (0.10) $ (0.15)
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING -
BASIC AND DILUTED 11,141 8,640
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