EX-99.1 2 d628512dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

For: Authentidate Holding Corp.

Berkeley Heights, NJ

November 14, 2013

AUTHENTIDATE HOLDING CORP. REPORTS RECORD FIRST QUARTER REVENUES

Strength in Telehealth Sales, VA Rollout, Drive 96% Increase in Revenues and Improved Operating Results

Authentidate Holding Corp. (Nasdaq: ADAT), a provider of secure web-based software applications and telehealth products and services for healthcare organizations, today announced financial results for the three-month period ended September 30, 2013.

Selected highlights for the fiscal first quarter include:

 

  Increased revenues approximately 96% to a record $1.8 million compared to $0.9 million for the prior year quarter. This was a 25% sequential increase compared to the fiscal fourth quarter of 2013. Year-over-year and sequential revenue increases from current operations were primarily due to growth from telehealth products and services.

 

  Improved operating margins and reduced operating loss and net loss for the quarter compared to the prior year period.

 

  Started enrolling patients for our Department of Veterans Affairs (VA) telehealth pilot program for Human Immunodeficiency Virus (HIV) patients and announced new customers for our telehealth and referral management solutions.

Following the end of the quarter the company announced its strong support for the VA’s commitment to telehealth solutions. The VA has continued to expand its focus on using technology for in-home telehealth as demonstrated by its recently released 2014-2020 Draft Strategic Plan, as well as its requested appropriation of $460 million for telehealth for the 2014 fiscal year, an increase of $19 million over the prior year. The company also announced the completion of a private placement transaction from which it received approximately $2.4 million in net proceeds.

Ben Benjamin, Chief Executive Officer of Authentidate, stated, “This was a strong start to our fiscal 2014 year, with record revenues and a continued, steady narrowing of operating and net losses. The acceleration of our growth rate reflects the results of our efforts to deploy our state-of-the-art telehealth platform with the VA, as well as other customers. We have seen a healthy uptick in patient activation, and continue to experience increased demand as healthcare organizations look to improve efficiency and access to care. The simultaneous improvement in our operating and net loss compared to the prior year period demonstrates the value of our business model, which benefits from a relatively fixed cost base. We believe that the strong quarter demonstrates that we are well on our way to realizing our financial objectives for the year, and believe the trends relative to revenue growth and improved operating efficiency are sustainable. We also believe that our recent private placement transaction will position us to more aggressively grow revenues, establish a greater presence in the marketplace and respond to new product orders and opportunities as they arise.”

First Quarter Fiscal 2014 Financial Results

Revenues for the quarter ended September 30, 2013 increased approximately 96% to $1.8 million compared to $0.9 million for the prior year period and increased approximately 25% sequentially from $1.4 million for the fourth quarter of fiscal 2013. These increases were due primarily to increased revenues from telehealth products and services.

 

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Operating loss for the quarter ended September 30, 2013 was $1.8 million compared to $2.0 million for the prior year period. This decrease reflects the increase in revenues which offset increases in selling and investor relations expenses. Net loss for the quarter was $1.9 million, or $0.09 per share, compared to $2.5 million, or $0.11 per share, for the prior year period. The decrease in net loss for the period is due primarily to higher revenues and a decrease in the non-cash amortization of the debt discount which offset the increase in expenses for the quarter.

Balance Sheet

As of September 30, 2013 cash, cash equivalents and marketable securities were $2.5 million and the company had working capital of $3.2 million.

Mr. Benjamin concluded, “In addition to our relationship with the VA, we also maintained our strategy of delivering our hospital discharge and referral management solutions to customers to help them lower costs and increase efficiencies as they confront ongoing regulatory reforms and industry trends focused on cutting costs while improving patient outcomes. We have a number of RFPs (request for proposals) in the pipeline and believe that as our customers are successful in their bidding processes we will be well positioned to capitalize on these trends as well. The strategic goals of healthcare reform initiatives, including those within the Affordable Care Act, are very much in-line with our offerings, and we believe that these efforts will only drive increased demand for Authentidate’s solutions.”

Conference Call Details

Management will host a conference call on Thursday, November 14, 2013, at 4:30 p.m. ET, to discuss the latest corporate developments and results. The dial-in number for callers in the U.S. is 877-407-8293 and the dial in number for international callers is 201-689-8349.

Participants may also access a live webcast of the conference call listed on Authentidate’s Investor Events Page at URL: http://www.authentidate.com/investors/investor-events.

A dial-in replay of the call will be available through November 21, 2013. To access the replay, please dial 877-660-6853 in the U.S. and 201-612-7415 internationally, and then enter the conference ID #13572642. After that, a link to replay the webcast of the conference call will be listed on Authentidate’s Investor Events Page at http://www.authentidate.com/investors/investor-events

About Authentidate Holding Corp.

Authentidate Holding Corp. is a provider of secure web-based software applications and telehealth products and services that enable healthcare organizations to coordinate care for patients and enhance related administrative and clinical workflows. Authentidate’s products and services enable healthcare organizations to increase revenues, reduce costs and enhance patient care by eliminating paper and manual work steps from clinical and administrative processes. Authentidate’s telehealth solutions combine patient vital signs monitoring with a web application that streamlines patient care management. Delivered as Software as a Service (SaaS), customers only require an Internet connection and web browser to access our web-based applications thereby utilizing previous investments in systems and technology. The company’s healthcare customers and users include leading homecare companies, health systems, physician groups and governmental entities. These organizations utilize the company’s products and services to coordinate care for patients outside of acute-care.

For more information, visit the company’s website at www.authentidate.com

 

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This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Act of 1934. When used in this release, the words “believe,” “anticipate,” “think,” “intend,” “plan,” “will be,” “expect,” and similar expressions identify such forward-looking statements. Such statements regarding future events and/or the future financial performance of the company are subject to certain risks and uncertainties, which could cause actual events or the actual future results of the company to differ materially from any forward-looking statement. Such risks and uncertainties include, among other things, the availability of any needed financing, the company’s ability to implement its business plan for various applications of its technologies, the impact of competition, the management of growth, and the other risks and uncertainties that may be detailed from time to time in the company’s reports filed with the Securities and Exchange Commission. In light of the significant risks and uncertainties inherent in the forward-looking statements included herein, the inclusion of such statements should not be regarded as a representation by the company or any other person that the objectives and plans of the company will be achieved.

Authentidate and Inscrybe are registered trademarks of Authentidate Holding Corp. All other trade names are the property of their respective owners.

- Financial Tables Follow -

Media Contacts:

Peter Seltzberg, Hayden IR,

peter@haydenir.com or (646) 415-8972

Brett Maas, Hayden IR,

Brett@haydenir.com or (646) 536-7331

Source: Authentidate Holding Corp.


Authentidate Holding Corp. and Subsidiaries

Condensed Consolidated Balance Sheet Data

 

     September 30,        
     2013     June 30,  

(in thousands, except per share data)

   (Unaudited)     2013  

Assets

    

Current assets

    

Cash and cash equivalents

   $ 2,293      $ 3,505   

Restricted cash

     256        256   

Marketable securities

     210        210   

Accounts receivable, net

     630        566   

Inventory

     3,273        3,959   

Prepaid expenses and other current assets

     667        688   
  

 

 

   

 

 

 

Total current assets

     7,329        9,184   

Property and equipment, net

     654        733   

Other assets

    

Licenses, net

     2,026        2,082   

Other assets

     1,173        1,194   
  

 

 

   

 

 

 

Total assets

   $ 11,182      $ 13,193   
  

 

 

   

 

 

 

Liabilities and Shareholders’ Equity

    

Current liabilities

    

Accounts payable, accrued expenses and other liabilities

   $ 3,214      $ 3,459   

Senior secured notes, net of unamortized discount

     819        724   

Deferred revenue

     117        150   
  

 

 

   

 

 

 

Total current liabilities

     4,150        4,333   

Long-term deferred revenue

     178        184   
  

 

 

   

 

 

 

Total liabilities

     4,328        4,517   
  

 

 

   

 

 

 

Commitments and contingencies

    

Shareholders’ equity

    

Preferred stock, $.10 par value; 5,000 shares authorized, Series B, 28 shares and Series D, 665 shares issued and outstanding on September 30, 2013 and June 30, 2013, respectively

     69        69   

Common stock, $.001 par value; 100,000 shares authorized, 35,360 and 35,339 issued and outstanding on September 30, 2013 and June 30, 2013, respectively

     35        35   

Additional paid-in capital

     197,561        197,409   

Accumulated deficit

     (190,811     (188,837
  

 

 

   

 

 

 

Total shareholders’ equity

     6,854        8,676   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 11,182      $ 13,193   
  

 

 

   

 

 

 

 

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Authentidate Holding Corp. and Subsidiaries

Condensed Consolidated Statement of Operations and Comprehensive Operations Data

(Unaudited)

 

     Three Months Ended  
     September 30,  

(in thousands, except per share data)

   2013     2012  

Revenues

    

Hosted software services

   $ 639      $ 667   

Telehealth products and services

     1,166        254   
  

 

 

   

 

 

 

Total revenues

     1,805        921   

Operating expenses

    

Cost of revenues

     1,295        700   

Selling, general and administrative

     1,862        1,736   

Product development

     241        248   

Depreciation and amortization

     186        204   
  

 

 

   

 

 

 

Total operating expenses

     3,584        2,888   
  

 

 

   

 

 

 

Operating loss

     (1,779     (1,967

Other (expense) income, net

     (95     (548
  

 

 

   

 

 

 

Net loss

     (1,874     (2,515
  

 

 

   

 

 

 

Basic and diluted loss per common share

   $ (0.09   $ (0.11
  

 

 

   

 

 

 

Comprehensive operations

    

Net loss

   $ (1,874   $ (2,515
  

 

 

   

 

 

 

Comprehensive loss

   $ (1,874   $ (2,515
  

 

 

   

 

 

 

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