LANV Lanvision Systems (MM)

LanVision Systems, Inc. Reports First Quarter 2005 Results CINCINNATI, May 23 /PRNewswire-FirstCall/ -- LanVision Systems, Inc. (NASDAQ:LANV), which does business under the name Streamline Health, today announced the operating results for the first quarter ended April 30, 2005. Revenues for the first quarter were $2.7 million, compared with $2.6 million in the comparable prior period. The operating loss for the first quarter was $254 thousand, compared with an operating loss of $42 thousand in the first quarter of last year. The increased operating loss is a result of the planned increased investment in people and technology during fiscal 2005 to enable the company to achieve the planned 20-25% annual revenue growth for fiscal 2005 and beyond. The net loss for the first quarter was $277 thousand, or $0.03 per basic and diluted share, when compared with a net loss of $421 thousand, or $0.05 per basic and diluted share in the first quarter of last year. The net loss declined because of the substantial decline in interest expense this quarter when compared with the prior comparable quarter as a result of the retirement of the high interest rate debt in July 2004. Both the operating and net loss was in line with management's expectations. The Company accomplished the following milestones during its first quarter: - Secured two remote hosting contract renewals valued at approximately $6.3 million over the terms of the agreements, - Signed a new contract with Oregon Health & Science University for an unlimited use enterprise workflow and document management license for the replacement of their existing document management solution across their entire enterprise, - Announced a partnership with IBM to develop integrated, open solutions for mutual healthcare customers, and - Was selected as the vendor of choice for an enterprise-wide license, valued at almost $2 million and which we anticipate closing in the second quarter, for Streamline Health's Health Information Management, Patient Financial Services, Supply Chain Management and Human Resource workflow and document management solutions throughout a large integrated delivery network. J. Brian Patsy, president and chief executive officer, stated, "Traditionally, our annual revenues are back-end loaded and our first quarter is the most challenging of the year. We believe fiscal 2005 will follow this same historical pattern. "During our first quarter," Mr. Patsy continued, "we began the implementation of our 2005 operating plan which calls for a significant investment in people and technology necessary to take advantage of the market opportunities we see in the health care industry for process improvements through the use of our advanced workflow and document management technologies. Although our plan resulted in increased operating expenses, we believe that this is a strategic investment in the future of the company and the return on this investment will be significant." Mr. Patsy concluded, "We are very encouraged with the progress the Company has made during the last six months in developing a significantly larger pipeline of qualified prospects. Our stated goal was to double our pipeline of opportunities within the first six months of fiscal year 2005, and we have already exceeded our goal. Accordingly, our efforts are beginning to produce results, and we believe that the momentum is building for the remainder of the year and beyond. We anticipate that we will exceed our first half operating plans, and we should be able to achieve, or potentially exceed, our 2005 operating plans. In this regard, we also announced today that we were selected as the vendor of choice for a major installation of our Health Information Management, Patient Financial Services, Supply Chain Management and Human Resource workflows and document management solutions. This contract, if signed in the second quarter, should enable us to report significantly improved second quarter and first half results." CONFERENCE CALL INFORMATION The first quarter conference call will be held at 10:00 a.m. Eastern Time, on Tuesday May 24, 2005. The call will feature remarks from J. Brian Patsy, Chief Executive Officer, William A. Geers, Chief Operating Officer and Paul W. Bridge, Jr., Chief Financial Officer. To access the call, dial 703-639-1180 approximately five minutes prior to the start of the call. To access the call via the webcast, go to http://www.lanvision.com/ before the call is scheduled to begin. The webcast will also be available on our web site for 30 days. About LanVision Systems dba Streamline Health Streamline Health is a leading supplier of workflow and document management tools, applications and services that assist strategic business partners, healthcare organizations, and customers to create and improve operational efficiencies through business process re-engineering and automating demanding document-intensive environments. The company's workflow- based services offer solutions to inefficient and labor-intensive healthcare business processes throughout the revenue cycle, such as chart coding, abstracting and completion, remote physician order processing, pre-admission registration scanning and signature capture, insurance verification, secondary billing services, explanation of benefits processing and release of information processing. The company's solutions also address the document workflow needs of the Human Resource and Supply Chain Management departments of the healthcare enterprise. All solutions are available for purchase or through a remote hosting services model that better matches customers' capital or operating budget needs. Streamline Health's solutions create a permanent document-based repository of historical health information that is complementary and can be seamlessly integrated with existing disparate clinical, financial and administrative information systems, providing convenient electronic access to all forms of patient information from any location, including access using a web-browser through the Intranet/Internet. These integrated systems allow providers and administrators to link systems with documents, which can dramatically improve the availability of patient information while decreasing direct costs associated with document retrieval, work-in-process, chart processing, document retention, and archiving. Streamline Health provides remote hosting services to various healthcare providers including University Hospital, a member of The Health Alliance of Greater Cincinnati, and Children's Medical Center of Columbus, OH. In addition, the Company has installed its workflow and document imaging solutions at leading healthcare providers including Stanford Hospital and Clinics, Albert Einstein Healthcare Network, Beth Israel Medical Centers, University of Pittsburgh Medical Center, Medical University Hospital Authority of South Carolina, and Memorial Sloan-Kettering Cancer Center. For additional information on LanVision, please visit our website at http://www.streamlinehealth.net/ or http://www.lanvision.com/ Safe Harbor statement under the Private Securities Litigation Reform Act of 1995 Statements made by LanVision Systems, Inc. that are not historical facts are forward-looking statements that are subject to risks and uncertainties. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements, included herein. These risks and uncertainties include, but are not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, key strategic alliances with vendors that resell LanVision products, the ability of the Company to control costs, availability of products produced from third party vendors, the healthcare regulatory environment, healthcare information systems budgets, availability of healthcare information systems trained personnel for implementation of new systems, as well as maintenance of legacy systems, fluctuations in operating results and other risks detailed from time to time in the LanVision Systems, Inc. filings with the U. S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly release the results of any revision to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. LANVISION SYSTEMS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED Three Months Ended April 30, 2005 2004 Revenues: Systems sales $140,804 $286,883 Services, maintenance and support 1,799,024 1,721,658 Application-hosting services 757,045 633,014 Total revenues 2,696,873 2,641,555 Operating expenses: Cost of systems sales 280,187 358,912 Cost of services, maintenance and support 761,364 680,245 Cost of application-hosting services 250,902 216,648 Selling, general and administrative 1,056,881 913,468 Product research and development 601,657 513,999 Total operating expenses 2,950,991 2,683,272 Operating (loss) (254,118) (41,717) Other income (expense): Interest income 17,794 24,102 Interest (expense) (40,195) (403,449) (Loss) before income taxes (276,519) (421,064) Income tax provision (benefit) - - Net (loss) $(276,519) $(421,064) Basic net (loss) per common share $(0.03) $(0.05) Diluted net (loss) per common share $(0.03) $(0.05) Number of shares used in basic per common share computation 9,087,164 9,035,897 Number of shares used in diluted per common share computation 9,087,164 9,035,897 LANVISION SYSTEMS, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS UNAUDITED April 30, Assets 2005 2004 Current assets: Cash and cash equivalents (restricted by long-term debt agreement) $2,818,347 $4,511,161 Accounts receivable, net of allowance for doubtful accounts of $200,000 and $400,000, respectively 2,643,943 1,864,025 Unbilled receivables 1,240,979 1,821,384 Prepaid expenses 414,559 351,913 Deferred tax assets 309,000 - Total current assets 7,426,828 8,548,483 Property and equipment: Computer equipment 1,627,491 2,623,435 Computer software 865,985 866,430 Office furniture, fixtures and equipment 702,387 1,167,497 Leasehold improvements 509,767 157,492 3,705,630 4,814,854 Accumulated depreciation and amortization (2,153,803) (3,803,357) 1,551,827 1,011,497 Capitalized software development costs, net of accumulated amortization of $3,433,229 and $2,758,478, respectively 2,156,700 1,781,451 Other, including deferred tax assets 701,091 624,300 $11,836,446 $11,965,731 Liabilities and stockholders' equity Current liabilities: Accounts payable $523,456 $241,522 Accrued compensation 342,382 230,752 Accrued other expenses 710,602 782,404 Deferred revenues 2,452,096 1,690,746 Current portion of capitalized leases 110,745 223,890 Current portion of long-term debt - 500,000 Long-term debt deferred interest - 3,491,176 Total current liabilities 4,139,281 7,160,490 Non-current portion of capitalized leases - 110,745 Non-current lease incentives 251,909 - Long-term debt 2,000,000 - Stockholders' equity: Preferred stock, $0.01 par value per share, 5,000,000 shares authorized, no shares issued - - Common stock, $0.01 par value per share, 25,000,000 shares authorized, 9,093,535 and 9,060,233 shares issued, respectively 90,935 90,602 Capital in excess of par value 35,012,491 34,964,286 Accumulated (deficit) (29,658,170) (30,360,392) Total stockholders' equity 5,445,256 4,694,496 $11,836,446 $11,965,731 DATASOURCE: LanVision Systems, Inc. CONTACT: Paul W. Bridge, Jr., Chief Financial Officer of LanVision Systems, Inc., +1-513-794-7100 Web site: http://www.lanvision.com/ http://www.streamlinehealth.net/

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