Authentidate Holding Corp. Reports Fiscal 2013 Second Quarter Results

Authentidate Holding Corp. Reports Fiscal 2013 Second Quarter Results

BERKELEY HEIGHTS, N.J., Feb. 14, 2013 (GLOBE NEWSWIRE) -- Authentidate Holding
Corp. (Nasdaq:ADAT), a provider of secure web-based software applications and
telehealth products and services for healthcare organizations, today announced
financial results for the three and six month periods ended December 31, 2012.

Selected highlights for the second quarter include:

  oIncreased revenues for the quarter by approximately 59% compared to the
    same period in the prior year, reflecting growth from both our telehealth
    products and services and our hosted software services.
  oCompleted the required test-in phase with the Department of Veterans
    Affairs (VA) for our Interactive Voice Response (IVR) vital signs
    monitoring solution for use with the VA's weight management protocol
    (TeleMOVE) and the VA approved the use of the IVR solution for TeleMove by
    VA facilities throughout the country.
  oAnnounced the addition of NBN Group as a new customer for our Inscrybe®
    Referral Management solution.
  oAdded Charles C. Lucas III to our board of directors and expanded the size
    of the board to six members. Mr. Lucas is currently the general counsel of
    Elevation LLC, an institutional broker-dealer, and is active in numerous
    civic and philanthropic organizations, including serving as a Trustee of
    The Duke Endowment and as Chairman of the Board of Trustees of the
    University of North Carolina School of the Arts.

Following the end of the quarter, the company announced that it had completed
the integration and required testing of the interface between its telehealth
solutions and the VA's VistA Electronic Health Records system and that the VA
had approved the interface for use in its national telehealth program. The
interface to VistA is designed to make it faster and easier for clinicians to
enroll patients, manage patient care plans and update patient information in
the VistA system. The company also announced that the VA had approved a number
of new Disease Management Protocols (DMPs) over the past few months for both
of our telehealth solutions which continues to make these solutions available
to a larger patient population at the VA. As part of our focus on expanding
our addressable markets, the company announced its plans to introduce a mobile
telehealth tablet and a telehealth software application in February 2013 to
complement our present telehealth products and services and provide for a
broader range of price points and patient segments that can benefit from
telehealth. The new products are designed to address the growing need for
mobility in the telehealth marketplace as well as the needs of healthcare
providers looking for ways to reduce patient care costs and the high hospital
readmission rate of patients with chronic illnesses. In connection with our
expense and cash management activities, the company changed its compensation
modification program to further reduce employee compensation, converted all
director compensation to non-cash equity based grants and reduced certain
other operating expenses beginning in January 2013.

Ben Benjamin, Chief Executive Officer of Authentidate, stated, "We have
continued to make solid progress with our core products and services as
evidenced by the increase in our revenues for the quarter and year-to-date
periods. In the telehealth area we remain focused primarily on increasing the
number of products and services we provide to the VA and we believe the VistA
interface and additional DMPs approved by the VA will help us to further
accelerate the pace of our revenue growth from this project. The new
telehealth products and services we are introducing are designed to serve a
rapidly growing segment of the patient population that can benefit from a
flexible, mobile patient monitoring solution. Along with our current
telehealth products and services, we believe these new solutions are
consistent with on-going industry and government efforts to reduce healthcare
costs and expand the use of telehealth solutions in the delivery of patient
care. As the telehealth market develops, we believe we are well positioned for
significant future growth and profitability and we plan to continue to offer
innovative solutions to serve these emerging market needs. With respect to our
other solutions, we have added new customer projects during the period and
continue to focus primarily on increasing the utilization of our services by
existing customers, adding additional partner relationships to expand our
reach and pursuing opportunities to combine our products and services to
support emerging market needs for post acute continuum of care solutions."

Mr. Benjamin concluded, "We are excited about our future prospects and believe
that the company will benefit from healthcare industry trends and government
reforms focused on reducing costs, shortening the length of hospital stays,
reducing hospital readmissions and shifting patient care towards wellness and
preventative care programs. We also believe the proposed bill before Congress
to expand the use of telemedicine and increase Medicare and Medicaid coverage
for such services, referred to as The Telehealth Promotion Act, will, if
enacted, accelerate the pace of growth for this market and significantly
expand the market opportunity for telehealth solutions. Although economic
conditions remain challenging and our revenue growth has been slower than we
would like, we are seeing increased interest in our products and services and
our revenues are moving in the right direction.Moving forward, we have
implemented some additional cost savings measures to manage operating expenses
and we believe the pace of our revenue growth will improve significantly as we
execute on our growth plans. I am looking forward to updating shareholders in
the coming months as opportunities in our market continue to develop."

Revenues for the quarter ended December 31, 2012 were approximately $1,051,000
compared to $661,000 for the prior year period.These results reflect an
increase in revenues from both our telehealth products and services and our
hosted software services. Revenues for the second quarter increased
approximately 14% compared to the first quarter of fiscal 2013 due to higher
revenues for both our telehealth products and services and our hosted software

Net loss for the quarter ended December 31, 2012 was $2,733,000, or $0.11 per
share, compared to $1,664,000, or $0.07 per share, for the prior year period.
The increase in net loss for the quarter is due primarily to the non-cash
amortization of the debt discount on the company's senior secured notes and
acquired licenses and higher selling, support, product development and stock
compensation expenses. The prior year period also reflects a payroll tax
credit which lowered expenses for the prior year quarter.

Revenues for the six months ended December 31, 2012 were approximately
$1,972,000 compared to $1,412,000 for the prior year period. The increase in
revenues for the period reflects the same trends as the second quarter.

Net loss for the six months ended December 31, 2012 was $5,248,000, or $0.22
per share, compared to $3,579,000, or $0.15 per share, for the prior year
period.The increase in net loss for the period reflects the same trends as
the second quarter.

As of December 31, 2012, cash, cash equivalents and marketable securities
amounted to approximately $2,114,000 and the company had working capital of
approximately $266,000.

Conference Call Details

Management will host a conference call on Thursday, February 14, 2013, at 4:30
p.m. ET, to discuss the latest corporate developments and results. The
dial-in number for callers in the U.S. is (877) 869-3847 and the dial in
number for international callers is (201) 689-8261.

A dial-in replay of the call will be available through February 28, 2013. To
access the replay, please dial (877) 660-6853 in the U.S. and (201) 612-7415
internationally, and then enter the conference ID # 408892.

About Authentidate Holding Corp.

Authentidate Holding Corp. is a provider of secure web-based software
applications and telehealth products and services that enable healthcare
organizations to coordinate care for patients and enhance related
administrative and clinical workflows. Authentidate's products and services
enable healthcare organizations to increase revenues, reduce costs and enhance
patient care by eliminating paper and manual work steps from clinical and
administrative processes. Authentidate's telehealth solutions combine patient
vital signs monitoring with a web application that streamlines patient care
management.Delivered as Software as a Service (SaaS), customers only require
an Internet connection and web browser to access our web-based applications
thereby utilizing previous investments in systems and technology. The
company's healthcare customers and users include leading homecare companies,
health systems, physician groups and governmental entities. These
organizations utilize the company's products and services to coordinate care
for patients outside of acute-care.

For more information, visit the company's website

This press release contains forward-looking statements within the meaning of
section 27A of the Securities Act of 1933 and section 21E of the Securities
Act of 1934. When used in this release, the words "believe," "anticipate,"
"think," "intend," "plan," "will be," "expect," and similar expressions
identify such forward-looking statements. Such statements regarding future
events and/or the future financial performance of the company are subject to
certain risks and uncertainties, which could cause actual events or the actual
future results of the company to differ materially from any forward-looking
statement. Such risks and uncertainties include, among other things, the
availability of any needed financing, the company's ability to implement its
business plan for various applications of its technologies, the impact of
competition, the management of growth, and the other risks and uncertainties
that may be detailed from time to time in the company's reports filed with the
Securities and Exchange Commission. In light of the significant risks and
uncertainties inherent in the forward-looking statements included herein, the
inclusion of such statements should not be regarded as a representation by the
company or any other person that the objectives and plans of the company will
be achieved.

Authentidate and Inscrybe are registered trademarks of Authentidate Holding
Corp. All other trade names are the property of their respective owners.

Authentidate Holding Corp. and Subsidiaries
Condensed Consolidated Balance Sheet Data

                                                     December 31, 
                                                     2012         June 30,
( in thousands, except per share data )               (Unaudited)  2012
Current Assets                                                    
Cash and cash equivalents                             $1,904     $2,036
Restricted cash                                       256        256
Marketable securities                                 210        210
Accounts receivable, net                              544        645
Inventory                                             4,544      4,016
Prepaid expenses and other current assets             1,071      1,286
Total current assets                                  8,529      8,449
Property and equipment, net                           833        917
Other assets                                                      
Software development costs, net                       86         171
Licenses, net                                         2,076      2,196
Other assets                                          1,095      1,128
Total assets                                          $12,619   $12,861
Liabilities, Redeemable Preferred Stock and                       
Shareholders' Equity
Current liabilities                                               
Accounts payable, accrued expenses and other          $3,526    $3,547
Senior secured notes, net of unamortized discount     4,635      --
Deferred revenue                                      102        100
Total current liabilities                             8,263      3,647
Senior secured notes, net of unamortized discount     --        2,866
Long-term deferred revenue                            269        281
Total liabilities                                     8,532      6,794
Commitments and contingencies                                     
Redeemable preferred stock                            3,455      3,254
Shareholders' equity                                              
Common stock, $.001 par value; 100,000 shares
authorized, 27,047 and 26,999issued and outstanding  27         27
onDecember 31,and June 30, 2012, respectively
Additional paid-in capital                            183,193    179,890
Accumulated deficit                                   (182,588)  (177,104)
Total shareholders' equity                            632        2,813
Total liabilities, redeemable preferred stock and     $12,619   $12,861
shareholders' equity

Authentidate Holding Corp. and Subsidiaries
Condensed Consolidated Statement of Operations and Comprehensive Operations

                                 Three Months Ended    Six Months Ended
                                 December 31,          December 31,
(in thousands, except per share   2012       2011       2012        2011
Hosted software services          $708     $649     $1,375    $1,286
Telehealth products and services  343       12        597        126
Total revenues                    1,051     661       1,972      1,412
Operating expenses                                               
Cost of revenues                  817       502       1,517      1,050
Selling, general and              1,626    1,385     3,362      3,078
Product development               313       209       561        417
Depreciation and amortization     204       231      408        448
Total operating expenses          2,960     2,327     5,848      4,993
Operating loss                    (1,909)   (1,666)   (3,876)    (3,581)
Other (expense) income, net       (824)     2         (1,372)    2
Net loss                          $(2,733) $(1,664) $(5,248)  $(3,579)
Basic and diluted loss per common $(0.11) $(0.07)  $(0.22)   $(0.15)
Comprehensive operations                                         
Net loss                          $(2,733) $(1,664) $(5,248)  $(3,579)
Comprehensive loss                $(2,733) $(1,664) $(5,248) $(3,579)

CONTACT: Investor Contacts:
         Robert Schatz
         Wolfe Axelrod Weinberger Assoc. LLC
         (212) 370-4500; (212) 370-4505 fax
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