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CareCentric Reports
1st Quarter 2003 Financial Results
ATLANTA, GA (May 9, 2003) - CareCentric, Inc. (OTC Bulletin Board: CURA), a leading provider of management information systems to the home health care community, reports today its financial results for the calendar quarter ended March 31, 2003. CareCentric reported a 4.3% increase in revenues for the three months ended March 31, 2003 to $5.5 million against revenues of $5.3 million for the three months ended March 31, 2002. The Net Cash provided from Operating Activities during the three months ended March 31, 2003 of $0.6 million represented a $1.8 million improvement when compared against the Use of Net Cash in Operating Activities of $1.2 million reported for the 1st quarter of 2002. Net Income for the three months ended March 31, 2003 was $0.4 million, which represented an increase of $1.0 million over the Net Loss of $0.6 million reported for the three months ended March 31, 2002.
"Our first quarter results for 2003 when compared to the first quarter of 2002 confirm the level of operating stability the Company has achieved over the course of the last year," stated John R. Festa, President and CEO of CareCentric. "Our increase in revenues in the first quarter was generated largely by our maintenance service offerings while our new system sales ran more slowly than expected. New system sales trends have been slow to improve as our customers remain involved in managing implementation of HIPAA regulations, cost reduction efforts in response to the 15% reduction in reimbursement rates and general economic sluggishness."
Mr. Festa added, "While our comparative quarter results are good, our objectives going forward remain clear. We must excel in all areas of customer satisfaction and aggressively work towards the extension of our product enhancement activities and development efforts for the new product platform. We continue to solicit our customers’ input towards those objectives through the use of customer service satisfaction surveys and customer advisory boards. Additionally, we are focused on greater marketing efforts and the addition of more service offerings to our customers to improve their satisfaction and capabilities in the use of our products."
"The Board remains pleased with the financial performance and the actions taken by the Company," said John Reed, Chairman of the Board of Directors. "The Company continues to push its objectives to new levels and despite the sales softness is continuing to meet its financial goals."
CareCentric provides information technology systems and services to over 1,500 customers. CareCentric provides freestanding, hospital-based and multi-office home health care providers (including skilled nursing, private duty, home medical equipment and supplies, IV pharmacy and hospice) complete information solutions that enable these home care operations to generate and utilize comprehensive and integrated financial, operational and clinical information. With offices nationwide, CareCentric is headquartered in Atlanta, Georgia.
Note regarding Private Securities Litigation Reform Act: Statements made in this press release which are not historical facts, including projections, statements of plans, objectives, expectations, or future economic performance, are forward looking statements that involve risks and uncertainties and are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. CareCentric's future financial performance could differ significantly from that set forth herein, and from the expectations of management. Important factors that could cause CareCentric's financial performance to differ materially from past results and from those expressed in any forward looking statements include, without limitation, the inability to obtain additional capital resources, variability in quarterly operating results, customer concentration, product performance and acceptance, long sales cycles, long and varying delivery cycles, CareCentric's dependence on business partners, emerging technological standards, risks associated with acquisitions and the risk factors detailed in CareCentric's Registration Statement on Form S-4 (File No. 333-96529) and from time to time in CareCentric's periodic reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
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