Orem, Utah (PRWEB) May 20, 2015
ActiveCare, Inc. (ACAR), a supplier of diabetes management products and wellness services for self-insured employers nationwide, reported financial results for the second fiscal quarter ended March 31, 2015.
During the quarter, we focused on organizing a national sales program that can take the ActiveCare solution to an array of sophisticated clients nationwide. We are poised to deliver on our growth objectives and deploy the ActiveCare program that mitigates healthcare costs and improves the quality of care of those diagnosed with diabetes, commented James Dalton, Executive Chairman of ActiveCare.
Second Quarter Results
The Company reported total revenues of $ 1,552,000 compared to $ 1,037,000 for the second quarter of the prior year. The increase is due to resupply shipments to end users who were added in the previous year.
Gross profit was $ 463,000 compared to gross deficit of $ 1,440,000 in the second quarter of the prior year. The gross deficit in the prior year second quarter was due primarily to an increase in the reserve for inventory obsolescence of $ 1,400,000. The remaining increase in gross profit was primarily due to the increase in resupply shipments to end users.
Loss from continuing operations was $ 1,230,000 compared to $ 4,205,000 in the second quarter of the prior year. The decrease was due to the increase in gross profit, an increase in other income of $ 846,000 and a decrease in operating expenses of $ 226,000.
The Company reduced operating expenses by $ 226,000 despite an increase in stock-based compensation of $ 250,000. The decrease in operating expenses was due to the Companys initiative to control expenses and decrease consulting services, professional fees, and employee compensation paid in cash.
The Company increased other income by $ 846,000 primarily due to a gain on extinguishment of debt of $ 769,000 and a gain on liability settlements of $ 279,000, offset, in part, by an increase of $ 102,000 in interest expense. The increase in interest expense is due to the addition of third party and related party short-term debt.
We have continued to restructure the Companys sales model and reorganize our cost structure, continued Dalton. The Companys progress in these areas has reduced the cash used in operating activities for the first six months of the fiscal year by $ 2,765,000 compared to the comparable period in the prior year. We are focused on creating a structure that will add value to our customers and expect revenues to grow as we attract larger employers who are searching for ways to mitigate the costs and improve the quality of healthcare.
ActiveCare, Inc. provides patented diabetes monitoring and wellness solutions that increase visibility, lower costs and provide real-time care for members resulting in improved outcomes. Utilizing state-of-the-art meters with embedded cellular technology, trained CareSpecialists can intervene in real-time and provide members with the support needed to control their disease 24 hours a day, every day. Headquartered in Orem, Utah and publicly traded on the OTC Bulletin Board under the symbol ACAR, ActiveCare’s solution is changing the way employers, individuals and their health plans monitor chronic disease. To learn more about ActiveCare, Inc., visit the website at http://www.activecare.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Our actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, including global economic conditions generally, regulatory uncertainty and economic pressure on the healthcare industry in particular, the governmental regulation of our products, manufacturing and marketing risks, and adverse publicity risks. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in our most recent filings with the Securities and Exchange Commission.
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