Authentidate Holding Corp. Reports Fiscal 2013 Third Quarter Results

Authentidate Holding Corp. Reports Fiscal 2013 Third Quarter Results

BERKELEY HEIGHTS, N.J., May 15, 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 nine month periods ended March 31, 2013.

Selected highlights for the quarter include:

  oIncreased revenues for the quarter by approximately 85% compared to the
    same period in the prior year due to growth from both our telehealth
    products and services and our hosted software services.
  oCompleted the integration between the Department of Veterans Affairs (VA)
    VistA Electronic Health Records system and our Electronic House Call (EHC)
    and Interactive Voice Response (IVR) telehealth solutions and the VA
    approved the use of the interface in its national telehealth program.
  oEntered into an agreement with Fastrack™ Healthcare Systems to provide
    ongoing development updates and support for an interface between our
    Inscrybe® Referral and Order Management solution and the Fastrack
    Enterprise System to streamline care order processing and enable physician
    eSignatures for Fastrack customers and referring physicians.
  oIntroduced a mobile telehealth tablet and a telehealth software
    application to address the growing need for mobility in the telehealth
    market, complement our current products and services and provide for a
    broader range of price points and patient segments that can benefit from

Following the end of the quarter, the company announced that our shareholders
had approved the automatic conversion of the company's outstanding shares of
Series C 15% convertible redeemable preferred stock into an aggregate of
3,551,541 shares of common stock. These shares are subject to a six month
restriction on transferability from the conversion date.

Ben Benjamin, Chief Executive Officer of Authentidate, stated, "Our revenues
are moving in the right direction and we believe the pace of our revenue
growth will continue to improve as we execute on our growth plans. During the
quarter we continued to focus on increasing sales of our telehealth products
and services to the VA and believe we are making solid progress with this
important project as evidenced by the increase in our telehealth revenues for
the period. We also made progress with our other solutions as we remained
focused primarily on increasing the utilization of our services by existing
customers and adding partner relationships to expand our reach in these
markets. We believe the increasing interest we are seeing in our products and
services stems from the ongoing healthcare reform in the United States as well
as industry trends to reduce costs, shift patient care towards wellness and
preventative care programs and provide post-acute continuum of care solutions
for patients. As the healthcare market develops, we believe our business will
benefit from these reforms and market trends as we serve these emerging needs
with our innovative products and services."

Mr. Benjamin concluded, "Although the economic environment has remained
challenging, we believe we are well positioned for future growth and
profitability. As our markets develop, we have continued to manage our
expenses, including expanding our compensation modification program during the
quarter to further reduce employee cash compensation. We also converted all
director compensation to non-cash equity based grants. We believe the
conversion of our Series C preferred stock into common stock will strengthen
our balance sheet and allow us to allocate resources to support our growth
plans. We remain very excited about the future prospects for our company and
will continue to update our shareholders in the coming months as opportunities
in our market develop."

Revenues for the quarter ended March 31, 2013 were $1,410,000 compared to
$764,000 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 third quarter increased approximately 34%
compared to the second quarter of fiscal 2013 due to higher revenues from our
telehealth products and services.

Net loss for the quarter ended March 31, 2013 was $2,670,000, or $0.11 per
share, compared to $2,018,000, or $0.08 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 of approximately $822,000 and the acquired licenses and higher selling,
legal, special shareholder meeting, investor relations and product development

Revenues for the nine months ended March 31, 2013 were $3,382,000 compared to
$2,176,000 for the prior year period. The increase in revenues for the period
reflects the same trends as the quarter.

Net loss for the nine months ended March 31, 2013 was $7,918,000, or $0.33 per
share, compared to $5,597,000, or $0.23 per share, for the prior year period.
The increase in net loss for the period is due primarily to the non-cash
amortization of the debt discount on the company's senior secured notes of
approximately $2,195,000 and the acquired licenses and the expenses discussed
above. The prior year period also reflects a payroll tax credit which lowered
expenses for the period.

As of March 31, 2013 cash, cash equivalents and marketable securities were
$764,000 and the company had working capital of $3,298,000. After adjusting
for the conversion of the Series C preferred stock into common stock on April
5, 2013, and the reclassification of the Series B preferred stock, pro-forma
total shareholders' equity was $1,521,000 at March 31, 2013.

Conference Call Details

Management will host a conference call on Wednesday, May 15, 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 May 29, 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 # 413687.

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
                                                        March 31,   
                                                        2013        June 30,
( in thousands, except per share data )                  (Unaudited) 2012
Current Assets                                                      
Cash and cash equivalents                                $554        $2,036
Restricted cash                                          256         256
Marketable securities                                    210         210
Accounts receivable, net                                997         645
Inventory                                                4,469       4,016
Prepaid expenses and other current assets               861         1,286
Total current assets                                    7,347       8,449
Property and equipment, net                             808         917
Other assets                                                        
Software development costs, net                         43          171
Licenses, net                                            2,030       2,196
Other assets                                             1,072       1,128
Total assets                                            $11,300     $12,861
Liabilities, Redeemable Preferred Stock and                         
Shareholders' (Deficit) Equity
Current liabilities                                                 
Accounts payable, accrued expenses and other liabilities $3,960      $3,547
Deferred revenue                                         89          100
Total current liabilities                               4,049       3,647
Senior secured notes, net of unamortized discount        5,449       2,866
Long-term deferred revenue                               263         281
Total liabilities                                        9,761       6,794
Commitments and contingencies                                      
Redeemable preferred stock                              3,554       3,254
Shareholders' (deficit) equity                                     
Common stock, $.001 par value; 100,000 shares
authorized, 27,075 and 26,999 issued and outstanding     27          27
onMarch 31, 2013 and June 30, 2012, respectively
Additional paid-in capital                              183,333     179,890
Accumulated deficit                                     (185,375)   (177,104)
Total shareholders' (deficit) equity                    (2,015)     2,813
Total liabilities, redeemable preferred stock and        $11,300     $12,861
shareholders' (deficit) equity
Pro-forma - Total shareholders' equity                   $1,521      $2,813

Authentidate Holding Corp. and Subsidiaries
Condensed Consolidated Statement of Operations and Comprehensive Operations
                                      Three Months Ended   Nine Months Ended
                                      March 31,            March 31,
(in thousands, except per share data)  2013       2012      2013      2012
Hosted software services               $675       $635      $2,050    $1,921
Telehealth products and services       735        129       1,332     255
Total revenues                         1,410      764       3,382     2,176
Operating expenses                                                 
Cost of revenues                       1,004      638       2,521     1,688
Selling, general and administrative    1,778      1,527     5,140     4,605
Product development                    273        227       834       644
Depreciation and amortization          213        292       621       740
Total operating expenses               3,268      2,684     9,116     7,677
Operating loss                         (1,858)    (1,920)   (5,734)   (5,501)
Other (expense) income, net            (812)      (98)      (2,184)   (96)
Net loss                               ($2,670)   ($2,018)  ($7,918)  ($5,597)
Basic and diluted loss per common      ($0.11)    ($0.08)   ($0.33)   ($0.23)
Comprehensive operations                                           
Net loss                               ($2,670)   ($2,018)  ($7,918)  ($5,597)
Comprehensive loss                     ($2,670)   ($2,018)  ($7,918)  ($5,597)

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