|BOSTON, -- AMICAS, Inc. (NASDAQ:AMCS) , a leader in radiology and medical image and information management solutions, today reported unaudited financial results for the quarter and for the year ended December 31, 2005.
Total revenues for the fourth quarter of 2005 were $14.2 million as compared to $12.1 million for the fourth quarter of 2004, which represents a year over year increase of 17%. Sequentially, from the third quarter of 2005, revenues increased by $0.6 million or 5%.
Operating income for the fourth quarter of 2005 was $0.6 million compared to a loss of $(10.9) million for the fourth quarter of 2004. The Company's net income for the fourth quarter of 2005 was $1.0 million, or $0.02 per share, compared to a net loss of $(9.9) million, or $(0.23) per share, for the fourth quarter of 2004.
The Company's operating income of $0.6 million for the fourth quarter of 2005 includes a $0.3 million litigation settlement, $0.2 million of earn-out settlement, and $0.9 million of depreciation and amortization.
For the year ended December 31, 2005 total revenues were $52.7 million, a 25% increase compared to $42.3 million for the year ended December 31, 2004. Loss from continuing operations for the year ended December 31, 2005 was $(2.0) million, or $(0.04) per share, compared to a loss from continuing operations of $(26.5) million, or $(0.61) per share, for the year ended December 31, 2004. The loss of $(2.0) million includes a $2.7 million litigation settlement, $1.9 million of earn-out settlement, $1.0 million of restructuring costs and $3.7 million of depreciation and amortization.
In our most recent Quarterly Report on Form 10-Q, we noted that we will begin to report our internal implementation and support costs within the cost of maintenance and services line on our statement of operations. Therefore, as of December 31, 2005 and all prior periods, the cost of maintenance and services now includes the salaries, benefits and other allocated indirect costs related to the delivery of services and maintenance revenue.
Dr. Stephen Kahane, CEO and chairman of AMICAS said, "Fiscal year 2005 ended with better than expected year over year revenue growth of 25% and continued strong sequential revenue growth. Also, per our 2005 guidance, we were right on track in the fourth quarter with a net income of $1.0 million. We successfully reached our financial goals for the year and are entering 2006 with confidence in the team, products and culture we have in place at AMICAS. Innovation and operating excellence aimed at delivering value for our customers remains our focus."
Peter McClennen, president and COO of AMICAS said, "Our fourth quarter results are a true testimony to the hard work and effort the new AMICAS team has put forth over the past year. As noted in our press release earlier this week, AMICAS had a record number of PACS orders in the fourth quarter including partnerships with large healthcare companies such as Essent Healthcare in Nashville, TN and hospitals such as Erie County Medical Center in Buffalo, NY. These new customer relationships are evidence of what our strong and determined team can do in the exciting image and information management marketplace."
Dr. Kahane went on to say that, "The market remains strong and penetrable. Now, more than ever, we believe our exemplary team, first class products and services combined with a strong balance sheet position AMICAS to be the key independent and innovative player within our market."
AMICAS ended the quarter with cash and cash equivalents of $82.2 million, no long-term debt and working capital of $79.1 million.
The results announced by the Company today are preliminary. AMICAS is in the process of completing its annual audit by its independent registered public accounting firm. As such, these results are subject to revision until the Company completes its audit and files its Annual Report on Form 10-K. In addition, the Company under the direction of its audit committee is in the process of looking into a question relating to $300,000 of its service revenues in the first half of the year. The audit committee has not yet concluded on the matter.
Looking forward, AMICAS expects total revenues for fiscal year 2006 to increase between 17% and 20% over fiscal year 2005. The Company expects fiscal year 2006 operating income to be three to five percent of revenue. As a percentage of revenue, operating income for the year, when adjusted to exclude depreciation and amortization, is expected to be around 10% to 12%.
Due to the ongoing implementation of Statement of Financial Accounting Standards 123R and the uncertainties related to the magnitude of the Company's equity-based compensation expense during fiscal 2006, the Company is not able to estimate at this time the impact of the equity-based compensation expense on its earnings per share for fiscal year 2006.