MEDINEX SYSTEMS REPORTS SECOND QUARTER
FINANCIAL PERFORMANCE
Revenue Growth Continues As Company Slashes
Losses By 43% For The Six-Month Period
Company Also Announces Corporate Headquarters Moves To Florida
FOR IMMEDIATE RELEASE
MEDINEX SYSTEMS REPORTS SECOND QUARTER
FINANCIAL PERFORMANCE
Revenue Growth Continues As Company Slashes
Losses By 43% For The Six-Month Period
Company Also Announces Corporate Headquarters Moves To Florida
CELEBRATION, FLORIDA -- (BUSINESS WIRE) -- August 14, 2002 -- Medinex Systems, Inc. (OTCBB:MDNX), an emerging leader in the delivery of comprehensive, cost-efficient and HIPAA-compliant healthcare technology solutions, today reported its financial results for the three and six months ended
June 30, 2002.
Net Revenues from continuing operations for the three months ended June 30, 2002 totaled $121,000, compared to no revenues reported for the comparable reporting period in the prior year. Net losses from continuing operations were reduced to $630,000, or $.04 loss per share, for the current three-month period, compared to net losses of $727,000 or $.06 loss per share, reported for the same three-month period in 2001. Previously reported revenues from the Companys former MedMarket division, which was sold on June 28, 2002, have been eliminated from the restated financial statements.
For the six months ended June 30, 2002, Medinex generated $226,000 in net revenues from continued operations compared to no revenues for the six months ended June 30, 2001. Net losses from continuing operations were $1,106,000, or $.06 loss per share, for the current reporting six-month period, representing a 43% reduction from net losses of $1,927,000 or $.16 loss per share, reported for the comparable period in the previous year. As noted above, the Company has restated its financial results to reflect only the performance of its continued operations.
On a sequential quarter over quarter basis, the Company increased revenues 15%. Management expects to continue and incrementally increase its performance as sales and marketing efforts gain enhanced momentum. Further, Medinex noted that its aggressive cost-cutting program resulted in a 41% reduction in operating expenses when comparing the results for the six months periods, ended June 30 in 2002 and 2001, respectively.
Tony Paquin, President and Chief Executive Officer of Medinex, stated, We are very enthused by the national interest our MedinexOffice suite of products has been attracting since we officially launched our sales and marketing initiatives at the beginning of the year. To illustrate, Medinex had 171 clinics, with 342 physicians, as licensed users of our system at the end of the second quarter, which compares with 104 clinics and 180 providers at the end of this fiscal years first quarter. Further, during the second quarter, we successfully secured a project-oriented IT consulting agreement with Florida Hospital, recognized as One of America's Best Hospitals" by US News & World Report for nine specialties."
Among several practices, wherein Medinex systems were either installed during the second quarter, or were contracted with and are currently being installed, include Kansas University Medical Center, Beverly Hills Heart Center, Alamo Bone and Joint Clinic, Central Florida Cardiology Group, Pacific Colon & Rectal Clinic, The Fresno Headache Medical Clinic, Weston Center for Plastic Surgery and Greater Baltimore Medical Center, just to name a few.
Continuing, Paquin noted, What healthcare providers are doing to comply with the new Federally-mandated HIPAA regulations is rapidly becoming a common source for media attention lately, and has contributed greatly to the growing demand for our proprietary product mix. Not only are physicians pleased with the significant cost efficiencies our solutions deliver, moreover, they are reporting universal satisfaction with the comprehensive, user-friendly and scalable functionality that clearly differentiates our technology from our market competitors."
In other news, the Company announced the relocation of its corporate headquarters from Coeur DAlene, Idaho to Celebration, Florida -- located just 30 minutes from downtown Orlando. Medinexs Phoenix, Arizona office will continue to house the Companys research and development, customer service and quality control divisions.
Paquin concluded, With Florida remaining one of the fastest growing healthcare markets in the country, it made prudent business sense to geographically relocate our operations to maximize available and dynamic sales opportunities within Florida, as well as in other high growth areas in the country. Over the course of the next several months, we expect to leverage our growing base of customers to further distinguish Medinex as the preferred healthcare administrative solutions provider to the industry. If the success were experiencing thus far is any indication, we are well on our way to achieving this important objective."
About Medinex Systems, Inc.
Soon to be headquartered in Central Florida, Medinex Systems, Inc. is rapidly emerging as an industry leader in the next generation of healthcare administrative solutions for the physician market. The Companys healthcare technology solutions include Medinex Office, a proprietary suite of products designed to assist physicians, hospitals and other healthcare organizations in complying with new federal legislation -- the Health Insurance Portability and Accountability Act (HIPAA). Medinex Office includes patient scheduling, an integrated medical transcription service, medical records management and billing. The Company also produces MxSecure, a patent-pending, secure document management and message delivery system; and MxSites, an affordable web site design and hosting service dedicated to healthcare providers. All of the Companys products are fully HIPAA-compliant.
The Company believes that the Medinex product strategy is the only totally web-based and fully-integrated web site, secure messaging, record management, patient scheduling and billing system widely available today that targets small to large medical clinics. Currently, Medinex Systems has premier healthcare clients in 23 states and processes thousands of medical records, appointments, transactions and messages each month. For more information on the Company, please visit www.medinex.com.
FINANCIAL TABLES TO FOLLOW
MEDINEX SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS
(In Thousands)
June 30, 2002 December 31, 2001
(Unaudited) (Restated)
ASSETS
Current Assets:
Cash and cash equivalents $ -- $ 177
Restricted cash 52 52
Accounts receivable, net of allowance for doubtful accts 75 --
Unbilled revenue 21 --
Inventory 6 --
Prepaid expenses and other assets 3 74
Total current assets 157 303
Property and equipment, net 118 228
Investments 3 3
Patents and other intangibles 15 --
Deposits 9 4
Total assets $ 302 $ 538
LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 604 $ 1,120
Overdrafts payable 27 --
Note payable, shareholder 545 --
Accrued expenses 275 262
Total current liabilities 1,451 1,382
Long-Term Liabilities:
Notes payable 128 127
Convertible debentures, net of discount 67 63
Total long-term liabilities 195 190
Net liabilities of Discontinued Operations -- 1,106
Total Liabilities 1,646 2,678
COMMITMENTS AND CONTINGENCIES 1,155 --
Preferred stock, $0.01 par value, 10,000,000 shares
authorized, no shares issued -- --
Common stock, $0.01 par value, 100,000,000 shares
authorized, 18,566,838 and 16,923,080 shares issued
and outstanding, respectively 186 169
Additional paid-in capital 44,610 43,844
Stock subscriptions receivable -- (34)
Warrants 41 41
Accumulated deficit (47,336) (46,160)
Total stockholders equity (deficit) (2,499) (2,140)
Total liabilities and stockholders equity (deficit) $ 302 $ 538
MEDINEX SYSTEMS, INC. STATEMENTS OF OPERATIONS
(In Thousands, Except Share And Per Share Amounts)
Three Months Ended June 30 Six Months Ended June 30
2002 2001 2002 2001
Unaudited Unaudited Unaudited Unaudited
(Restated) (Restated)
Revenues, net $ 121 $ -- $ 226 $ --
Total Cost of Revenue 100 -- 161 --
Gross Profit 21 -- 65 --
Operating expenses:
Sales and marketing 125 25 166 107
General and administrative 427 579 851 1,478
Amortization and depreciation 19 88 38 264
Stock-based compensation 62 35 86 80
Total operating expense 633 727 1,141 1,929
Loss from continuing operations (612) (727) (1,076) (1,929)
Interest income (expense), net (20) -- (28) 2
Other income (expense), net 2 -- 17 --
Loss on disposal of assets -- -- (19) --
Net loss from continuing operations (630) (727) (1,106) (1,927)
Loss from discontinued operations (37) (719) (70) (1,137)
Net loss available to common stockholders $ (667) $(1,446) $(1,176) $(3,064)
Basic and diluted net loss per common
share, continuing operations $ (0.04) $ (0.06) $ (0.06) $ (0.16)
Basic and diluted net loss per common
share, discontinued operations $ Nil $ (0.06) $ Nil $ (0.09)
Weighted average shares outstanding 17,640,471 12,396,868 17,440,471 12,231,690
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, Medinex Systems anticipated losses, competition, strategic alliances, potential fluctuations in operating results and rate of growth, management of potential growth, lack of sufficient capitalization, risks of system interruption, impact from international vendors, uncertainty of product acceptance, limited operating history, and risks of new business areas. More information about factors that potentially could affect Medinex Systems' financial results is included in Medinex Systems' filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2000, and all subsequent filings, including Quarterly Reports on Form 10-Q.
FOR MORE INFORMATION, PLEASE CONTACT
Medinex Systems, Inc.
Kelly Paquin
321-559-1234 or via email at kelly.paquin@medinex.com
ELITE FINANCIAL COMMUNICATIONS GROUP
Stephanie Noiseux
407-585-1080 or via email at steph@efcg.net
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