Healthcare services and information technology developer WebMD reported fiscal 2005 first-quarter (end-March 31) revenues of $303.9 million, up 12.1% from the $271.2 million posted in the same period last year. Net income for the quarter was $9.8 million, an increase compared with the $5.7 million posted for the same quarter last year.
The firm's WebMD Practice Services segment in Van Nuys, CA, which includes the company's RIS operations, reported revenues of $73 million for the quarter, a 2.8% increase compared with the $71 million posted for the first quarter of 2004. Income before taxes, noncash, and other items was $4.4 million, an upturn when compared with the $1.4 million reported for the same period in 2004. An increase in operating margins to 6%, compared with a 1.9% operating margin last year, was a result of greater operating efficiencies, the company said.
The Elmwood Park, NJ-based company has increased its financial guidance for the remainder of 2005. WebMD said it expects consolidated revenue for 2005 will be in the range of $1.26 billion to $1.3 billion. For the second quarter of 2005, the firm said it expects revenues of $315 million to $325 million.
In related news, the company reported a plan to establish its WebMD Health business segment as a separate publicly traded company through an initial public offering of approximately 10% to 14% of the equity of WebMD Health. It is anticipated that an initial registration statement will be filed with the U.S. Securities and Exchange Commission in the next several weeks.
By AuntMinnie.com staff writers
April 29, 2005
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