-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, J19aGQehfMFPf0lUVGl6/SLY90qtLATkvTNqnXL7Rto6BirOc462h//DEyin+AB9 0r3qZLtAMCQpjHrWz6v7lA== 0001104659-04-012645.txt : 20040505 0001104659-04-012645.hdr.sgml : 20040505 20040505144755 ACCESSION NUMBER: 0001104659-04-012645 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040503 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040505 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ADAM INC CENTRAL INDEX KEY: 0000863650 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 581878070 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-26962 FILM NUMBER: 04781125 BUSINESS ADDRESS: STREET 1: 1600 RIVEREDGE PARKWAY STREET 2: STE 800 CITY: ATLANTA STATE: GA ZIP: 30328 BUSINESS PHONE: 7709800888 MAIL ADDRESS: STREET 1: 1600 RIVEREDGE PKWY STREET 2: STE 800 CITY: ATLANTA STATE: GA ZIP: 30328 FORMER COMPANY: FORMER CONFORMED NAME: A D A M SOFTWARE INC DATE OF NAME CHANGE: 19950919 8-K 1 a04-5377_18k.htm 8-K

 

SECURITIES AND EXCHANGE COMMISSION

Washington D. C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): May 4, 2004

 

A.D.A.M., INC.

(Exact name of registrant as specified in its charter)

 

Georgia

 

0-26962

 

58-1878070

(State or other jurisdiction
of incorporation)

 

(Commission file number)

 

(I.R.S. Employer
Identification No.)

 

1600 RiverEdge Parkway, Suite 100, Atlanta, Georgia 30328-4696

(Address of Principal Executive Offices)

 

Registrant’s telephone number, including area code: (770) 980-0888

 

 



 

Item 7.                                   Financial Statements and Exhibits.

 

The following exhibit is being furnished with this report pursuant to Item 12 of this Form 8-K:

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release of Registrant Regarding Financial Results for the First Quarter Ended March 31, 2004.

 

Item 12.                            Results of Operations and Financial Condition.

 

On May 4, 2004, A.D.A.M., Inc. (the “Company”) issued a press release announcing its financial results for the three months ended March 31, 2004.  A copy of the press release is furnished herewith as Exhibit 99.1.

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

A.D.A.M., Inc.

Date: May 4, 2004

By:

/s/ ROBERT S. CRAMER, JR.

 

 

 

Robert S. Cramer, Jr.

 

 

Chief Executive Officer

 

 

 

 

By:

/s/ KEVIN S. NOLAND

 

 

 

Kevin S. Noland

 

 

President and Chief Operating Officer

 

 

(acting principal financial and accounting
officer)

 

3



 

EXHIBIT INDEX

 

Exhibit
Number

 

Exhibit Name

 

 

 

99.1

 

Press Release dated May 4, 2004

 

4


EX-99.1 2 a04-5377_1ex99d1.htm EX-99.1

Exhibit 99.1

 

A.D.A.M., Inc. Announces First Quarter Results

 

Company Reports Quarterly Net Income of $0.03 Per Share and Announces A Stock Repurchase Program

 

Atlanta, GA - May 4, 2004 - A.D.A.M., Inc. (Nasdaq: ADAM) today announced its financial results for the first quarter ended March 31, 2004.

 

A.D.A.M, Inc. reported net income for the first quarter ended March 31, 2004 of $224,000 or $0.03 per fully diluted share, as compared to net income of $299,000 or $0.04 per fully diluted share, in the year-ago quarter.

 

Revenues for the quarter ended March 31, 2004 were $1,751,000 compared to revenues of $2,344,000 in the year-ago period.  The decrease in quarterly revenue and net income is primarily a result of the expiration of a content licensing agreement the Company had with WebMD Corp. that expired at the end of the first quarter of 2003. Excluding WebMD revenues from the first quarter of 2003 and comparing those results to the first quarter of 2004 results, the Company improved its bottom line performance from a loss of approximately $300,000 in the first quarter of 2003 to a profit of $224,000 in the first quarter of 2004, an increase of more than $500,000.  Cash and cash equivalents were $5,372,000 as of March 31, 2004, an increase of $818,000 from $4,554,000 as of December 31, 2003.

 

 “We are pleased to have five consecutive quarters of profitability with strong cash generation from operations and continued growth in our healthcare revenues,” commented Robert S. Cramer, Jr., A.D.A.M.’s Chairman and CEO.  “With WebMD completely behind us, we expect revenues to grow both in healthcare and education over the next few quarters. Healthcare licensing is growing steadily, fueled by healthy renewals and new initiatives that are beginning to make revenue contributions. We also expect education sales to begin to grow again with this summer’s release of a major product upgrade as well as the development of new educational vertical markets. Overall, with operating expenses well contained, we are now focused on expanding our profitability through top line revenue growth,” he continued.

 

The Company also announced that its board of directors has authorized a stock repurchase program, effective immediately, to repurchase up to 500,000 shares of the Company’s outstanding common stock. Repurchases may be in the open market, including block transactions, or in privately negotiated transactions. The program will be funded by cash on hand. The timing of the purchases and the exact number of shares to be purchased will be dependent on future business and market conditions. “We believe that our prospects for growth and profitability make the repurchase of our shares at this time a good investment of corporate funds that is in the best interest of our shareholders,” Mr. Cramer said.

 



 

Conference Call Information

 

A.D.A.M. will hold its first quarter earnings conference call today, May 4, 2004, at 10:00 A.M. EDT. To participate in the call, please dial (877) 829-1372 approximately five minutes prior to the start time.  International callers may dial (706) 679-8134.

 

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 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.

 

About A.D.A.M., Inc.

 

Headquartered in Atlanta, A.D.A.M., Inc. (NASDAQ: ADAM - News) is a leading publisher of interactive, visually engaging health and medical information for healthcare organizations, medical professionals, consumers and students. A.D.A.M. products contain physician-reviewed text, health visuals produced by medically trained illustrators, and multimedia interactivity to create health information solutions that offer a unique “visual learning” experience in both the healthcare and education markets. A.D.A.M. is a founding member of Hi-Ethics, a coalition of the most widely referenced health websites and information providers committed to developing industry standards for the quality of consumer health information. For more information, visit www.adam.com.

 

A.D.A.M., Inc.

 

Condensed Consolidated Statements of Operations

and Summary Balance Sheet Data

 

(In thousands, except per share data)

 

(unaudited)

 

 

 

Three Months Ended
March 31,

 

Three Months Ended
March 31,

 

 

 

2004

 

2003

 

 

 

 

 

 

 

Total Revenues

 

$

1,751

 

$

2,344

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

Cost of revenues

 

367

 

464

 

General and administrative

 

348

 

372

 

Product and content development

 

264

 

505

 

Sales and marketing

 

412

 

524

 

Depreciation and amortization

 

151

 

191

 

 

 

 

 

 

 

Total operating expenses

 

1,542

 

2,056

 

 

 

 

 

 

 

Operating income (loss)

 

209

 

288

 

 

 

 

 

 

 

Interest income (expense), net

 

15

 

11

 

 

 

 

 

 

 

Net income (loss)

 

224

 

299

 

 

 

 

 

 

 

Basic net income (loss) per common share

 

$

0.03

 

$

0.04

 

 

 

 

 

 

 

Basic weighted average number of common shares outstanding

 

7,826

 

7,008

 

 

 

 

 

 

 

Diluted net income (loss) per common share

 

$

0.03

 

$

0.04

 

 

 

 

 

 

 

Diluted weighted average number of common shares outstanding

 

8,589

 

7,197

 

 

 

 

Summary Balance Sheet Data

 

 

 

3/31/2004

 

12/31/2003

 

Cash and cash equivalents

 

$

5,372

 

$

4,554

 

Accounts receivable-net

 

1,187

 

1,407

 

Total current assets

 

7,100

 

6,355

 

Goodwill

 

2,043

 

2,043

 

Total assets

 

11,223

 

10,496

 

Deferred revenue

 

2,656

 

2,295

 

Short term debt

 

11

 

11

 

Total current liabilities

 

3,343

 

2,940

 

Total liabilities

 

3,376

 

2,976

 

Shareholders’ equity

 

7,847

 

7,520

 

Working capital

 

3,757

 

3,415

 

 

For further information, contact:

 

Victor Thompson

A.D.A.M., Inc.

(770) 425-7877

 

###

 


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