ATHENAHEALTH, INC. REPORTS FOURTH-QUARTER AND FULL-YEAR 2007 RESULTS

March 5th, 2008 | Computer Software , Technology | 0 Comments »

N/A (March 05, 2008) – 35% Revenue Growth, Compared to Same Quarter Last Year — Non-GAAP Adjusted Quarterly Net Income of $2.4 Million or $0.07 Per Share — 13% Adjusted EBITDA Margin, Compared to Breakeven in Same Quarter Last Year

WATERTOWN, Mass., March 5, 2008 (PRIME NEWSWIRE) — athenahealth, Inc. (Nasdaq:ATHN), a leading provider of internet-based business services for physician practices, today announced financial results for the fourth-quarter and the full-year of 2007.

Total revenue for the three months ended December 31, 2007 was $28.2 million, compared to $20.8 million for the same period last year, an increase of 35%. Full year 2007 revenue was $100.8 million, compared to full year 2006 revenue of $75.8 million, an increase of 33%.

“We are pleased with our 2007 financial performance and we are thrilled with the progress we have made in building out the depth and breadth of our national network for physicians,” said Jonathan Bush, Chairman and Chief Executive Officer of athenahealth.

For the three months ended December 31, 2007, the Company’s Non-GAAP Adjusted EBITDA of $3.7 million was 13% of revenue, compared to a breakeven Non-GAAP Adjusted EBITDA for the same period last year. GAAP net income in the quarter was $2.1 million, compared to a GAAP net loss of $2.7 million in the same period last year. Non-GAAP adjusted net income for the quarter was $2.4 million, compared to a Non-GAAP adjusted net loss of $2.3 million in the same period last year.

“We were pleased to achieve our 32nd consecutive quarter of organic revenue growth,” said Carl Byers, Chief Financial Officer. “As we grow, we will look to expand profitability given our scalable operating model.”

For the year ended December 31, 2007, the Company’s Non-GAAP Adjusted EBITDA of $11.3 million was 11% of revenue, compared to Non-GAAP Adjusted EBITDA for 2006 of $0.7 million which was 1% of revenue. For 2007, the GAAP net loss was $3.5 million, compared to a GAAP net loss of $9.2 million in 2006. Non-GAAP adjusted net income for the year ended December 31, 2007 was $3.5 million, compared to a Non-GAAP adjusted net loss of $7.8 million in 2006.

Key metrics and milestones in the fourth-quarter and full-year 2007 included the following:

— $769 million in cash collections posted to client accounts in the
fourth quarter of 2007, compared to $575 million in the same
quarter of 2006

— $2.7 billion in cash collections posted to client accounts in all
of 2007, compared to $2.0 billion in all of 2006

— 9,423 active physicians live in the fourth quarter of 2007,
compared to 7,393 in the same quarter of last year

— Announced the purchase of an operations facility in Maine

— During the fourth-quarter of 2007, the Company presented at the
Merrill Lynch Health Services Investor Conference and the 19th
Annual Piper Jaffray Health Care Conference

As of December 31, 2007, the Company had cash and short-term investments of $71.9 million and short- and long-term debt of $1.4 million. The Company retired approximately $22.2 million of debt in the fourth quarter of 2007, including $17.0 million retired on December 31st.

A reconciliation of the Company’s financial results determined in accordance with United States generally accepted accounting principles (GAAP) to certain non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Explanation of Non-GAAP Financial Measures.”

Conference Call Information

athenahealth will conduct a conference call on Wednesday, March 5, 2008, at 5:00 p.m. Eastern Time to discuss its financial results, quarterly highlights and management’s outlook for future financial and operational performance. To access athenahealth’s live conference call and webcast, dial 888-778-8884 or 913-312-0841 (international), and use confirmation code: 4802096. A live webcast and replay will also be available shortly after the call is completed on the Company’s investor web site: http://investors.athenahealth.com/events.cfm. A replay of the conference call will be available by calling 888-203-1112 or 719-457-0820 (international), pass code 4802096.

Source: ATHENAHEALTH