Authentidate Holding Corp. Reports Second Quarter Results

Authentidate Holding Corp. Reports Second Quarter Results

163% Increase in Telehealth Revenues Drives Top- and Bottom-Line Improvements
for the Quarter and Year-to-Date Periods

BERKELEY HEIGHTS, N.J., Feb. 13, 2014 (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-month and six-month periods ended December 31,
2013.

Selected highlights for the second quarter include:

  *Increased revenues approximately 39% for the second quarter compared to
    the prior year quarter, led by an increase of approximately 163% in
    telehealth revenues.
    
  *Improved operating margins compared to the prior year and reduced
    operating and net losses compared to the prior year and sequentially from
    the first quarter of fiscal 2014.
    
  *Added Jeffrey A. Beunier to the board of directors. Mr. Beunier is the
    founder and principal of Open Choke Capital Management, LLC, which
    provides consulting services to private and institutional investors as
    well as public companies focusing on energy related transactions,
    monetization strategies and strategic advisory assignments. He also
    advises independent oil and gas operators on capital structure and funding
    sources. Mr. Beunier serves on the advisory board, and is a limited
    partner, of Lazarus Investment Partners, LLLP and was elected to the board
    pursuant to the Board Nomination and Observer Agreement between the
    company and Lazarus Investment Partners.
    
  *Strengthened the company's balance sheet with the completion of a private
    placement transaction of the company's common stock and warrants for net
    proceeds of approximately $2.4 million.

Ben Benjamin, Chief Executive Officer of Authentidate, stated, "Our results
continued to move in the right direction as we reported strong revenue growth
and improved operating results for the quarter and year-to-date periods.
Shortly before the holidays, the Department of Veterans Affairs (VA) was
required to implement a security system upgrade at its data center that
required some changes from Authentidate. We completed the changes in a timely
manner, however, the required testing for the changes as well as the timing of
the major U.S. holidays in November and December impacted patient activations
and sales for our state-of-the-art Electronic House Call telehealth platform
for the last six weeks of the quarter. While this delayed our progress near
term and caused a brief slowdown in revenue growth compared to the first
quarter of fiscal 2014, the changes are now behind us. We believe there is
pent up demand for this important solution and we expect to get back on track
to realize our financial objectives for fiscal 2014. Despite this delay, we
improved our operating results compared to the prior year periods, reflecting
the strength of our business model which benefits from a relatively fixed cost
base, and strengthened our balance sheet. We have also made solid progress
with our efforts to lower production costs for our solutions and we remain
excited about the future prospects for our business."

Second Quarter Fiscal 2014 Financial Results

Revenues for the quarter ended December 31, 2013 increased approximately 39%
to $1.5 million compared to $1.1 million for the prior year period and
decreased approximately 19% sequentially from $1.8 million for the first
quarter of fiscal 2014. The increase in revenues compared to the prior year
reflects an increase in revenues from our telehealth products and services.
The sequential decrease in revenues from the first quarter is due primarily to
a decrease in telehealth equipment sales during the second quarter.

Operating loss for the quarter ended December 31, 2013 decreased to $1.5
million compared to $1.9 million for the prior year period. This decrease
reflects the increase in revenues, lower data center maintenance expenses and
a state payroll tax credit which offset increases in selling, investor
relations, legal and stock option expenses. Net loss for the quarter was $1.6
million, or $0.07 per share, compared to $2.7 million, or $0.11 per share, for
the prior year period. The decrease in net loss for the period is due
primarily to higher revenues and a decrease in the non-cash amortization of
the debt discount for the quarter.

Year-to-Date Financial Results

Revenues for the six months ended December 31, 2013 increased approximately
66% to $3.3 million compared to $2.0 million for the prior year period. The
increase in revenues for the period reflects an increase in revenues from
telehealth products and services.

Operating loss for the six months ended December 31, 2013 decreased to $3.3
million compared to $3.9 million for the prior year period. This decrease
reflects the increase in revenues for the period which offset the increase in
total operating expenses. Net loss for the six-month period was $3.5 million,
or $0.16 per share, compared to $5.2 million, or $0.22 per share, for the
prior year period. The decrease in net loss for the period reflects the same
trends as the second quarter.

Balance Sheet

As of December 31, 2013, cash, cash equivalents and marketable securities were
$3.4 million and the company had working capital of $4.7 million.

Mr. Benjamin concluded, "During the quarter, revenues for our hosted software
services decreased as market consolidation and the competitive bidding process
for healthcare products impacted several of our referral and order management
customers. While these trends are affecting several of our customers in the
short-term, we believe we will benefit from ongoing healthcare reforms to
lower costs, automate healthcare processes and improve patient outcomes. As we
have stated previously, we believe these factors are all catalysts for growth
and we expect to see our hosted software services revenues increase in the
near and long term as we help customers address these emerging market needs.
Our RFP (request for proposals) pipeline remains robust with both new and
existing customers for all three of our solutions and we believe we are well
positioned for growth as our markets develop. Additionally, the data from
successful deployments of our solutions is increasingly demonstrating a
powerful return on investment for our customers, and in the coming months we
expect to more actively communicate this ROI to the marketplace.
Authentidate's solutions address the strategic goals of healthcare reform
initiatives and we believe that these efforts will drive long-term demand for
our solutions going forward."

Conference Call Details

Management will host a conference call on Thursday, February 13, 2014, 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 877-407-8293 and the dial in number for
international callers is 201-689-8349.

Participants may also access a live webcast of the conference call listed on
Authentidate's Investor Events Page at URL:
http://www.authentidate.com/investors/investor-events.

A dial-in replay of the call will be available through February 20, 2014. To
access the replay, please dial 877-660-6853 in the U.S. and 201-612-7415
internationally, and then enter the conference ID #13575169. After that, a
link to replay the webcast of the conference call will be listed on
Authentidate's Investor Events Page at
http://www.authentidate.com/investors/investor-events.

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 at www.authentidate.com


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, Inscrybe and InscrybeMD 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, 
                                                      2013         June 30,
( in thousands, except per share data )                (Unaudited)  2013
                                                                  
Assets                                                             
Current assets                                                     
Cash and cash equivalents                              $3,194     $3,505
Restricted cash                                        256         256
Marketable securities                                  210         210
Accounts receivable, net                               461         566
Inventory                                              3,171       3,959
Prepaid expenses and other current assets              475         688
Total current assets                                   7,767       9,184
Property and equipment, net                            584         733
Other assets                                                       
Licenses, net                                          1,981       2,082
Other assets                                           1,147       1,194
Total assets                                           $11,479    $13,193
                                                                  
Liabilities and Shareholders'Equity                               
Current liabilities                                                
Accounts payable, accrued expenses and other           $3,010     $3,459
liabilities
Senior secured notes, net of unamortized discount      --          724
Deferred revenue                                       67          150
Total current liabilities                              3,077       4,333
Long-term deferred revenue                             139         184
Total liabilities                                      3,216       4,517
Commitments and contingencies                                      
Shareholders' equity                                               
Preferred stock, $.10 par value; 5,000 shares
authorized, Series B, 28 shares and Series D, 665      69          69
shares issued and outstanding on December 31, 2013 and
June 30, 2013, respectively
Common stock, $.001 par value; 100,000 shares
authorized, 38,327 and 35,339 issued and outstanding   38          35
onDecember 31, 2013 andJune 30, 2013, respectively
Additional paid-in capital                             200,646     197,409
Accumulated deficit                                    (192,490)   (188,837)
Total shareholders' equity                             8,263       8,676
Total liabilities and shareholders' equity             $11,479    $13,193


Authentidate Holding Corp. and Subsidiaries
Condensed Consolidated Statement of Operations and Comprehensive Operations
Data
(Unaudited)
                                                                
                                  Three Months Ended    Six Months Ended
                                  December 31,          December 31,
                                                                
(in thousands, except per share    2013       2012       2013       2012
data)
                                                                
Revenues                                                         
Hosted software services           $559     $708     $1,198   $1,375
Telehealth products and services   902       343       2,068     597
Total revenues                     1,461     1,051     3,266     1,972
Operating expenses                                               
Cost of revenues                   942       817       2,237     1,517
Selling, general and               1,608     1,626     3,470     3,362
administrative
Product development                264       313       505       561
Depreciation and amortization      192       204       378       408
Total operating expenses           3,006     2,960     6,590     5,848
Operating loss                     (1,545)   (1,909)   (3,324)   (3,876)
Other (expense) income, net        (32)      (824)     (127)     (1,372)
Net loss                           (1,577)   (2,733)   (3,451)   (5,248)
Basic and diluted loss per common  $(0.07)  $(0.11)  $(0.16)  $(0.22)
share
Comprehensive operations                                         
Net loss                           $(1,577) $(2,733) $(3,451) $(5,248)
Comprehensive loss                 $(1,577) $(2,733) $(3,451) $(5,248)

CONTACT: Media Contacts:
         Peter Seltzberg, Hayden IR,
         peter@haydenir.com  or (646) 415-8972
         Brett Maas, Hayden IR,
         Brett@haydenir.com  or (646) 536-7331

Authentidate logo
 
Press spacebar to pause and continue. Press esc to stop.