NU Online News Service, Nov. 5, 2003, 10:59 a.m. EST – Healthaxis Inc., Irving, Texas, says problems with a Washington state contract hurt third-quarter earnings.
The health benefits administration technology company is reporting a $792,000 net loss for the latest quarter on $5.4 million in revenue, compared with a $14 million net loss on $4.8 million in revenue for the third quarter of 2002.
The amount of cash and cash equivalents on hand fell to $8.4 million at the end of the quarter, from $11 million at the end of 2002.
Net income for the third quarter of 2002 included a one-time gain of $16 million created by the exchange of long term debt for preferred stock and cash. Without the gain, Healthaxis would have reported a loss of $2.2 million for the quarter.
What Your Peers Are Reading
Healthaxis signed contracts with several large new clients during the third quarter, but it notes that third-quarter results include $128,000 in losses resulting from efforts to handle a fixed-fee job for the State of Washington Health Care Authority.