Claimsnet.com Reports Second Quarter 2010 Results

Claimsnet.com Reports Second Quarter 2010 Results

Including a 6% Increase in Revenues

PR Newswire -- July 29, 2010





DALLAS, July 29 /PRNewswire-FirstCall/ -- Claimsnet.com inc. (OTC Bulletin Board: CLAI), a leading provider of Internet-based claims processing solutions for the healthcare industry, today reported its results for the second quarter of 2010, which ended June 30, 2010.



For the quarter ended June 30, 2010, Claimsnet reported revenues of $596,000, a 6% increase compared to the $563,000 reported for the second quarter of 2009. Revenues for the six months ended June 30, 2010 were $1,175,000, a 9% increase compared to the $1,082,000 reported for the six months of 2009.



Cost of revenues for the second quarter of 2010 was $434,000 compared to $419,000 for the second quarter of 2009, a 4% increase. Cost of revenues for the six months of 2010 was $848,000 compared to $832,000 for the six months of 2009, a 2% increase. Selling, general and administrative expenses of $186,000 were reported for the second quarter of 2010 compared to $221,000 reported for the second quarter of 2009, a 16% decrease. Selling, general and administrative expenses of $360,000 were reported for the six months of 2010 compared to $472,000 reported for the six months of 2009, a 24% decrease.



Claimsnet reported a gross profit of $162,000 for the second quarter of 2010, compared with a gross profit of $144,000 for the second quarter of 2009, a 13% increase. Claimsnet reported a gross profit of $327,000 for the six months of 2010, compared with a gross profit of $250,000 for the six months of 2009, a 31% increase.



The loss from operations for the second quarter of 2010 was $(24,000) compared to $(77,000) reported for the second quarter of 2009, a decrease of 69%. The loss from operations for the six months of 2010 was $(33,000) compared to $ (222,000) reported for the six months of 2009, a decrease of 85%. The net loss for the second quarter of 2010 was $(31,000), or $(0.00) per share, compared to net loss of ($87,000), or $(0.00) per share, for the second quarter of 2009. The net loss for the six months of 2010 was $(47,000), or $(0.00) per share, compared to net loss of ($244,000), or $(0.01) per share, for the six months of 2009.



"We are pleased, in the current economic environment, with the 6% growth in revenues," commented Don Crosbie, Chief Executive Officer of Claimsnet. "Our loss from operations in the second quarter decreased compared to last year by 69%. This decrease in loss resulted from both the increase in revenues and a decrease in overall costs associated with actions the Company took in April 2009, as it focused on moving towards improved operational results over the subsequent quarters."



Claimsnet.com inc. is a leading provider of Internet-based claim processing solutions for the healthcare payer industry, including distinctive, advanced ASP technology. Headquartered in Dallas, Texas, Claimsnet offers systems that are distinguished by ease of use, customer care, security and measurable cost advantages. More information on Claimsnet can be found at the company's web site at http://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, dependence on suppliers and distribution channels, 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.



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CLAIMSNET.COM INC. AND SUBSIDIARIES SUMMARY OPERATIONS STATEMENT INFORMATION (In thousands except per share data)



(unaudited) (unaudited) Six Months Quarter Ended Ended June 30, June 30,