Claimsnet second quarter 2012 revenues increase 12% to $657,000

Claimsnet.com inc. (OTCBB: CLAI.PK), a leading provider of Internet-based claims processing solutions for the healthcare industry, today reported its results for the second quarter of 2012, which ended June 30, 2012.

For the quarter ended June 30, 2012, Claimsnet reported revenues of $657,000, a 12% increase compared to the $586,000 reported for the second quarter of 2011.  Revenues for the six months ended June 30, 2012 were $1,293,000, a 12% increase compared to the $1,158,000 reported for the six months of 2011.

Cost of revenues for the second quarter of 2012 was $494,000 compared to $415,000 for the second quarter of 2011, a 19% increase. Cost of revenues for the six months of 2012 was $993,000 compared to $849,000 for the six months of 2011.  Selling, general and administrative expenses of $195,000 were reported for the second quarter of 2012 compared to $166,000 reported for the second quarter of 2011, a 17% increase. Selling, general and administrative expenses of $380,000 were reported for the six months of 2012 compared to $342,000 reported for the six months of 2011, an 11% increase. The increase in expenses is primarily attributable to personnel and associated benefits needed to comply with the HIPAA 5010 health claim format mandated by regulations promulgated by the Centers for Medicare & Medicaid Services (CMS).

Claimsnet reported a gross profit of $163,000 for the second quarter of 2012, compared with a gross profit of $171,000 for the second quarter of 2011, a 5% decrease. Claimsnet reported a gross profit of $300,000 for the six months of 2012, compared with a gross profit of $309,000 for the six months of 2011, a 3% decrease.       

The loss from operations for the second quarter of 2012 was $32,000 compared to income of $5,000 reported for the second quarter of 2011. The loss from operations for the six months of 2012 was $80,000 compared to $33,000 reported for the six months of 2011. The net loss for the second quarter of 2012 was $38,000 or $0.00 per share, compared to net loss of $0, or $0.00 per share, for the second quarter of 2011. The net loss for the six months of 2012 was $91,000, or $0.00 per share, compared to net loss of $42,000, or $0.00 per share, for the six months of 2011.

"This was a good quarter from a revenue standpoint," commented Don Crosbie, Chief Executive Officer of Claimsnet. "Revenue was 12% higher than for the second quarter of 2011 and it is gratifying to see the commitment our customers have to the services that we provide. At the same time, we continue to explore all avenues and options relative to the business on a go forward basis so as to maximize shareholder value."

Source: Claimsnet.com inc.