Server: Netscape-Enterprise/3.0F Date: Fri, 19 Dec 1997 19:12:51 GMT Content-type: text/html Last-modified: Wed, 22 Oct 1997 15:58:32 GMT Content-length: 6889 Accept-ranges: bytes
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NEWS RELEASE MINNEAPOLIS, October 21, 1997 -- Chronimed Inc. (Nasdaq: CHMD), today announced record first quarter revenue and net income for the fiscal 1998 period ended September 26, 1997. Chronimed reported revenue for the first quarter of $31.7 million, up 11 percent from $28.5 million in last year's first quarter. Income from operations increased to $2.3 million and 7.2 percent of revenue for the quarter compared to $1.7 million and 5.9 percent, respectively, in the prior year's first quarter. Net income per share increased to $.13 against $.09 a year ago. The Company said it is revising its revenue categories to more appropriately reflect its current lines of business. Revenue will now fall into two categories: "Services" and "Products." The Services area primarily includes the Self Injectables program, StatScript Pharmacy, Organ Transplant Pharmacy, and Home Service Medical. The Products area includes the Medical Products and Publishing businesses. Services revenue grew almost $5.9 million, or 30 percent, with significant growth and profit improvement in the Self Injectables program and StatScript Pharmacy. As expected, revenue in the Products area declined $2.7 million, or 30 percent, against last year's first quarter due entirely to the discontinuance of a previous product. However, Products profits were up almost 10 percent due to higher margins on Company-manufactured products. Overall gross profit performance for the first quarter was 27.4 percent of revenue against 27.1 percent last year. The improvement is driven primarily by strong performance in the Products area. Operating expenses increased $370,000 in the first quarter against prior year, but improved as a percentage of revenue from 21.2 percent to 20.3 percent. PCommenting on the results, Chronimed's chairman and chief executive officer Maurice R. Taylor, II, said, "We are very pleased with our first quarter results. Each of our major businesses is off to an excellent start in pursuit of its goals for the fiscal year. We expect to have a fine year." Chronimed Inc. is a diversified healthcare company specializing in products and services to meet the unique needs of patients with chronic diseases. Chronimed develops, markets and distributes pharmaceuticals, general medical products, and patient education materials directly to individuals and to the patients of managed care and case management companies nationwide, as well as to institutions that serve these patients. Chronimed Inc. is a healthcare company specializing in products and services to meet the unique needs of patients with chronic diseases. Chronimed develops, markets and distributes pharmaceuticals, general medical products, and patient education materials directly to the individual and to the patients of managed care and case management companies nationwide, as well as to institutions that serve these patients. (In thousands, except per share data)
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