Claimsnet.com first quarter revenues decrease 1% to $573,000

Claimsnet.com inc. (OTCBB: 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 2011, which ended March 31, 2011.

For the quarter ended March 31, 2011, the Company reported revenues of $573,000, a 1% decrease from the $578,000 reported for the first quarter of 2010.

Expenses overall, comprised of cost of revenues and selling, general and administrative expenses increased 27% compared with the first quarter of 2010. Cost of revenues for the first quarter of 2011 was $434,000 compared to $414,000 in the first quarter of 2010, an increase of 5%.  Selling, general and administrative expenses of $314,000 were reported for the first quarter of 2011, representing an 82% increase from the $173,000 reported in the first quarter of 2010. The increase in selling, general and administrative expenses was primarily attributable to a $138,000 write off of goodwill required by recent accounting pronouncements.

The Company reported a gross profit of $139,000 for the first quarter of 2011, compared with a $164,000 gross profit in the first quarter of 2010.

The loss from operations for the first quarter of 2011 was $175,000, compared to a loss of $9,000 reported in the first quarter of 2010. The net loss for the first quarter of 2011 was $180,000, or $0.01 per share, compared to $16,000, or $0.00 per share, in the first quarter of 2010.

"Although sales were down 1% in the quarter, a closer look shows that this was attributed to a decline with one customer that had a short-term high volume requirement in the 1st quarter of last year. If we take out that customer for comparative purposes, our volumes were up 7.3% and revenue was up 9% over the same quarter last year; both figures showing that our relationships with existing, and a number of new customers, remain strong and growing," commented Don Crosbie, Chief Executive Officer of Claimsnet. "In addition, while the net loss was $180,000 for the first quarter 2011, this included $138,000 from the one-time goodwill impairment charge required by new accounting pronouncements that went into effect in the first quarter."

SOURCE Claimsnet.com inc.