ATLANTA, Feb. 16, 2005 (PRIMEZONE) -- A.D.A.M., Inc. (Nasdaq:ADAM), a leading developer of interactive health information and decision support tools for the healthcare and education markets, today announced its financial results for the fourth quarter and year ended December 31, 2004.
Highlights for the fourth quarter and the year include:
- Net income for the fourth quarter ended December 31, 2004 was $676,000, or $0.07 per share on a fully diluted basis, compared to net income of $97,000, or $0.01 per share on a fully diluted basis, in the year ago period. - Net income for the year ended December 31, 2004 was $1,621,000, or $0.19 per share on a fully diluted basis, compared to net income of $608,000, or $0.07 per share on a fully diluted basis, for the year ended December 31, 2003. - Operating margins for the year ended December 31, 2004 improved to 18% as compared to 7% for the year ended December 31, 2003. - Healthcare licensing revenues increased approximately 35% during 2004 compared to 2003. - The Company's cash and investments grew to $6,968,000 as of December 31, 2004 compared to $4,554,000 at December 31, 2003, an increase of $2,414,000.
Revenues for the fourth quarter ended December 31, 2004, were $2,471,000 as compared to revenues of $1,738,000 in the year-ago quarter, an increase of 42%. Revenues for the year ended December 31, 2004, were $8,433,000 compared to revenues of $7,889,000 for the year ended December 31, 2003, an increase of 7%.
"A.D.A.M.'s results reflect the solid progress that we have made in moving our company from a dependency on a few large customers to having a revenue base that touches many areas of the healthcare industry," commented Robert S. Cramer, Jr., A.D.A.M.'s Chairman and Chief Executive Officer. "Today, A.D.A.M. is a highly competitive brand that offers our healthcare clients and partners what we believe to be the best and most robust interactive health information products and decision support tools available.
"In 2005, we plan to continue to focus on revenue growth and expansion into new healthcare verticals, particularly into the health plan and corporate wellness markets. With a list of new products, including our Illustrated Family Health Guide book, our Health Risk Assessment products, and A.D.A.M. Interactive Anatomy 4 for education, nearly $7 million in cash and investments and eight consecutive quarters of profitability, we believe that we are well positioned."
The Company also announced that it has suspended the stock repurchase program that it announced in May 2004. The Company repurchased an aggregate of 269,259 shares of its common stock at an average purchase price of $4.04 per share during the repurchase program.
The Company will be hosting a conference call to further discuss its results this morning, February 15, 2005 at 10:00 a.m. Eastern Time. To participate, please dial (877) 829-1394. For a replay of the conference call, dial 1-800-633-8284 and enter reservation number 21230900.
About A.D.A.M., Inc.
For more than a decade, A.D.A.M.'s unique, visually engaging health content, decision support tools and educational products have been helping millions of people "get smart" about their health and wellness. With one of the largest consumer-oriented medical information libraries in the world, A.D.A.M. markets its solutions to leading healthcare and pharmaceutical organizations, government, employers, and educational institutions. To learn more about A.D.A.M., visit www.adam.com or call 1-800-408-ADAM.
Forward-Looking Statements
Except for historical information, all of the statements, expectations and assumptions contained in this press release are forward-looking statements. These statements, especially revenue, net income and cash flow forecasts, involve a number of risks and uncertainties that could cause actual results, performance or developments to differ materially. Factors that could affect the company's actual results, performance or developments include general economic conditions, development of the Internet as a source of health information, pricing actions taken by competitors, demand for the company's health information, and regulatory changes in laws and regulations that impact how the company conducts its business. A.D.A.M. disclaims any obligation or duty to update any of its forward-looking statements.