Healthcare services and information technology developer WebMD reported fiscal 2003 fourth-quarter revenues of $258.4 million, up 12.6% from the $229.5 million posted in the same period last year. For the period (end-December 31), the Elmwood Park, NJ-based company had net income of $10.5 million, compared with a net loss of $2.4 million reported for the fourth quarter last year.
Revenue for the fiscal year was $964 million, a 10.6% increase compared with $871.7 million in 2002. Net loss for the year was $17 million, an improvement compared with the net loss of $49.7 million a year ago.
The firm’s WebMD Practice Services of Van Nuys, CA, which includes the company’s RIS operations, reported revenues of $78.3 million for the quarter, an 8% increase compared with the $72 million posted for the fourth quarter of 2002. Income before taxes, non-cash, restructuring, and other items was $4.6 million, a decrease of approximately 35% from the prior year, reflecting an increased investment associated with HIPAA, installation of the company's Network Services solutions, and lower margins on new systems sales, the company said.
WebMD also released an updated financial guidance for 2004. Revenues for 2004 are expected to be between $1.145 billion and $1.175 billion, an increase of approximately 19% to 22% over 2003. Net income is expected to be between $54 million and $60 million, compared to a net loss of $17 million this year.
In related news, the company reported that it has privately placed $100 million of preferred stock with the PCG Corporate Partners Fund, a private equity fund managed by the Pacific Corporate Group (PCG) and principally backed by the California Public Employees' Retirement System.
The preferred stock is convertible into shares of WebMD’s common stock at $9.40 per common share, or approximately 10% over the average of the high and the low prices of its common stock on March 3, 2004. The investor purchased the preferred stock from WebMD in a private transaction, the company said.
By AuntMinnie.com staff writers
March 5, 2004
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Road to RSNA, WebMD Practice Services, November 13, 2003
WebMD posts Q3 gains, November 7, 2003
Florida install for WebMD, September 26, 2003
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