OREM, Utah, Feb. 24, 2015 (GLOBE NEWSWIRE) -- ActiveCare, Inc. (OTCQB:ACAR), a leader in diabetes management products and wellness services for self-insured employers nationwide, today reported financial results for the first fiscal quarter ended December 31, 2014.
"During the quarter, we spent significant time and resources on expanding our partnerships with multiple insurance groups for our recurring revenue platform," commented Michael Z. Jones, CEO of ActiveCare. "ActiveCare is now positioned to focus on attracting both large and small employers who are searching for ways to mitigate the costs and improve the quality of healthcare for their employees."
First Quarter Results
The Company reported total revenues of $1,508,000 compared to $2,010,000 in the first quarter of the prior year. The decrease is due to additional quarterly resupply shipments made at the beginning of the three-month period ended December 31, 2013 that were originally scheduled for the end of the three-month period ended September 30, 2013. The impact was that multiple end users received two resupply shipments during the quarter ended December 31, 2013 compared to one resupply shipment in the comparable quarter of the current year.
Gross profit was $391,000 compared to $868,000 in the first quarter of the prior year. The decrease was primarily due to lower sales and a larger allocation of our CareCenter costs from our discontinued segment, CareServices, to our Chronic Illness monitoring segment.
Loss from continuing operations was $2,250,000 compared to $2,469,000 in the first quarter of the prior year. The decrease was due to a decrease in other expenses of $657,000 and operating expenses of $39,000, offset, in part, by the decrease in gross profit.
The Company reduced operating expenses by $39,000 despite an increase in stock-based compensation of $598,000. The decrease in operating expenses was due to the Company's initiative to control expenses and decrease employee compensation paid in cash, consulting services, and professional fees.
- The Company reduced other expenses by $657,000 primarily due to a $919,000 reduction of interest expense, offset, in part, by a decrease of $373,000 to the gain on derivative liability. The reduction of interest expense is due to the conversion of debt and related accrued interest to equity during the first quarter of the prior year.
"We have focused on reorganizing the Company's cost structure, personnel and sales model," continued Jones. The Company's progress in these areas has reduced operating expenses by $39,000 compared to the comparable quarter of the prior year. "As ActiveCare continues to evolve into a more efficient organization, it is our expectation that revenues will resume growth under a much more efficient cost structure and a stronger foundation. With this foundation, we are focused on attracting both large and small employers who are searching for ways to mitigate the costs and improve the quality of healthcare."
ActiveCare, Inc. provides patented diabetes monitoring and wellness solutions that increase visibility, lower costs and provide real-time care for members resulting in improved outcomes. Utilizing state-of-the-art meters with embedded cellular technology, trained CareSpecialists can intervene in real-time and provide members with the support needed to control their disease 24 hours a day, every day. Headquartered in Orem, Utah and publicly traded on the OTC Bulletin Board under the symbol ACAR, ActiveCare's solution is changing the way employers, individuals and their health plans monitor chronic disease. To learn more about ActiveCare, Inc., visit the website at www.activecare.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Our actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, including global economic conditions generally, regulatory uncertainty and economic pressure on the healthcare industry in particular, the governmental regulation of our products, manufacturing and marketing risks, adverse publicity risks, and risks associated with assimilating our recent acquisitions. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in our most recent filings with the Securities and Exchange Commission.
CONTACT: Company Contact: Bryan Dalton, Director of Market Strategies ActiveCare, Inc. (877) 862-5545
Released February 24, 2015