Message #17 From:
NewsBot Date: November 10, 2006 06:00:00 AM
BGAT News Bluegate Reports Third Quarter 2006 Financials: First Nine Months of 2006 Revenue Increased 16% Over Pro Forma Revenue for the First Nine Months of 2005
HOUSTON--(BUSINESS WIRE)--Bluegate Corp. (OTCBB:BGAT), provider of the Nation's only Medical
Grade Network®, today released its third
quarter results.
Consolidated revenue of $2,695,032 for the nine months ending September
30, 2006 increased 16% over the pro forma revenues of $2,317,277 for the
comparable 2005 period.
On September 15, 2005, Bluegate acquired substantially all of the assets
of Trilliant Corp. The revenues reported above represent pro forma
combined revenues of Bluegate and Trilliant assuming the acquisition
occurred on January 1, 2005. Other than the pro forma revenue amount
referred to above, the amounts contained in the remainder of this press
release represent the results of the Trilliant acquisition from the date
of acquisition, September 15, 2005.
"We are pleased with the results for our first nine months of 2006,"
stated Manfred Sternberg, Bluegate CEO. "During the third quarter we
made significant progress in proving out our business model which allows
hospitals and physicians to achieve 'clinical integration' through the
use of our Medical Grade Network®.
“Bluegate built the Medical Grade Network®
to meet the needs of major hospitals who want to connect physicians to
their computer networks in a secure environment,”
Mr. Sternberg continued. “Our relationship
with Memorial Hermann Health Network Providers, one of the Nation's
largest Independent Physician Groups, has served as a business model in
Houston, Texas that can now be scaled nationally.”
Bluegate is currently in discussions with other hospitals groups across
the country that are interested in deploying Bluegate’s
Medical Grade Network®
Third Quarter Results
During the three months ended September 30, 2006, revenue was $944,537
versus $665,775 for the three month period ended September 30, 2005.
This represents an increase of 42% or $278,762 and is primarily
attributable to the acquisition of the assets of Trilliant Corporation
as well as the ongoing operations of Bluegate’s
Medical Grade Network®
The cost of services for the three months ended September 30, 2006 was
$408,596 compared to $242,676 for the three months ended September 30,
2005. The increase in cost of services of $165,920 is due to higher
interconnect fees and costs associated with the expansion of the
operations of Bluegate’s Medical Grade
Network®.
The gross margin for the three months ended September 30, 2006 was
$535,941 compared to $423,099 for the three months ended September 30,
2005. The gross margin as a percentage of sales decreased to 57% for the
three months ended September 30, 2006 from 64% for the three months
ended September 30, 2005 due to higher interconnect fees and costs
associated with the expansion of our Bluegate’s
Medical Grade Network®.
We incurred selling, general and administrative expenses (SG&A) of
$1,933,343 for the three months ended September 30, 2006 compared to
$1,185,689 for the three months ended September 30, 2005. The increase
in SG&A of $747,654 is primarily attributable to the expansion of our
sales and marketing efforts and recording stock option and warrant
related expenses as a result of our adoption of SFAS No. 123R in 2006.
We incurred a net loss of $1,656,469 for the three months ended
September 30, 2006 compared to a net loss of $822,723 for the three
months ended September 30, 2005. The increase of $833,746 is due
primarily to an increase in stock option and warrant related expenses as
a result of our adoption of SFAS No. 123R during the first quarter of
2006.
NINE MONTHS ENDED SEPTEMBER 30, 2006 AS COMPARED TO THE NINE MONTHS
ENDED SEPTEMBER 30, 2005
During the nine months ended September 30, 2006, our revenue was
$2,695,032 versus $1,541,542 for the nine month period ended September
30, 2005. This represents an increase of $1,153,490 and primarily
attributable to our acquisition of the assets of Trilliant Corporation
and our efforts to market Bluegate’s Medical
Grade Network®, our core business.
Our cost of services for the nine months ended September 30, 2006 was
$1,175,487 compared to $664,407 for the nine months ended September 30,
2005. The increase in cost of services of $511,080 is due to
interconnect fees and costs associated with the expansion of our Bluegate’s
Medical Grade Network®.
Our gross margin for the nine months ended September 30, 2006 was
$1,519,545 compared to $877,135 for the nine months ended September 30,
2005. Our gross margin as a percentage of sales of 56% for the nine
months ended September 30, 2006 did not change from 56% for the nine
months ended September 30, 2005.
We incurred selling, general and administrative expenses of $4,829,654
for the nine months ended September 30, 2006 compared to $3,237,415 for
the nine months ended September 30, 2005. The increase in SG&A of
$1,592,239 is primarily attributable to the expansion of our sales and
marketing efforts and recording stock option and warrant related
expenses as a result of our adoption of SFAS No. 123R in 2006.
We incurred a net loss of $4,042,842 for the nine months ended September
30, 2006 compared to a net loss of $3,378,784 for the nine months ended
September 30, 2005, or an overall increase of $664,058. After taking
into effect a non-cash charge to income of $892,882 in 2005 upon the
conversion of notes payable to common stock, Bluegate’s
net loss increased by $1,556,940. The increase is primarily attributable
to recording stock option and warrant related expenses due to the company’s
adoption of SFAS No. 123R on January 1, 2006, the issuance of common
stock and warrants to extend the company’s
obligations pursuant to registration rights and the issuance of warrants
for the extension of the debt payment relating to the convertibles notes
payable.
Bluegate’s 10-QSB filing for third quarter
2006 can be accessed in its entirety at www.sec.govor www.bluegate.com.
About Bluegate
Bluegate Corp. is an industry leader of outsourced health care IT
solutions, Medical Grade Network® and
remote management services. It provides IT consulting through its
professional services division and HIPAA-compliant, turnkey managed
security services and interoperability solutions across its Medical
Grade Network® to hospitals, physicians,
other health care facilities, RHIOs, HCOs and third-party solution
providers. Bluegate is publicly traded on the over the counter bulletin
board under the ticker symbol BGAT. For information, visit www.bluegate.com
or call 713-686-1100.
About Memorial Hermann Health Network Providers
Founded in 1982, Memorial Hermann Health Network Providers is the
largest independent physician organization of its kind in Texas, with
leadership strength unsurpassed in today’s
health care industry. We invest in our physicians and take pride in our
network. MHHNP provides its member physicians the resources necessary to
run an efficient practice, so they can focus on what really matters…patient
care.
Employers throughout Texas turn to MHHNP to help manage their benefit
costs. Whether it’s an entire suite of
medical and occupational benefit services, including full administration
through our Third Party Administration service line, or benefit plan
design and consultation, our team of experts is here for you. With our
aggressive approach to medical management, our network of highly
qualified providers, and our experience, we continue to achieve
significant cost savings for our clients, far exceeding national
benchmarks. Further information is available at www.MHHNP.org
or by calling 713-448-6464.
Safe Harbor
This press release may contain "forward-looking statements." All
statements, other than statements of fact, included in this release and
without limitation statements regarding potential future plans and
objectives of the Company, are forward-looking statements that involve
risks and uncertainties. Although the Company believes that the
expectations reflected in such forward-looking statements are
reasonable, there can be no assurance that such statements will prove to
be accurate. Actual results and future events could differ materially
from those anticipated in such statements.
