HMS second-quarter net income increases to $9.1 million

HMS (NASDAQ: HMSY) today announced its financial results for the second quarter of 2010.

“Along with a very strong sales quarter, HMS made strategic advances in both product development with the acquisition of AMG-SIU, and in our long-range planning with the purchase of our operations center in Irving, Texas”

For the quarter ended June 30, 2010 revenue increased 31.4% to $70.7 million, compared with $53.8 million for the same period a year ago. Net income for the quarter was $9.1 million or $0.32 per diluted share compared to net income of $6.6 million or $0.24 per diluted share for the same period a year ago.

For the first half of 2010, revenue increased 30.8% to $135.7 million versus $103.8 million for the prior year. Net income for the first half was $16.7 million or $0.59 per diluted share versus net income of $12.3 million or $0.45 per diluted share for the prior year.

"Along with a very strong sales quarter, HMS made strategic advances in both product development with the acquisition of AMG-SIU, and in our long-range planning with the purchase of our operations center in Irving, Texas," said Bill Lucia, CEO of HMS. "AMG brings us analytical expertise coupled with a powerful and scalable fraud, waste, and abuse engine that we will leverage across our entire Program Integrity portfolio. Combined, these transactions strengthen our already solid foundation and better position us for the coming expansion of government entitlement programs."

The Company is also reiterating its full year GAAP EPS guidance of $1.38.

Source HMS

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