health insurance
Health Benefits Direct Corporation (OTCBB: HBDT), a leading technology innovator in the marketing, sales and administration of a range of insurance technology products, today announced its financial results for the third quarter ended September 30, 2009.
During the third quarter, the Company continued its previously announced restructuring activities. As part of these restructuring efforts, in the first quarter of 2009, the Company ceased selling health and life insurance products to individuals and families and disposed of a significant portion of its agency business, which is now classified as discontinued operations in the Company's financial statements.
Third Quarter Highlights
-- Revenues from continuing operations of $1.5 million, compared to $1.4
million in the third quarter of 2008. The increase was due primarily to
increased InsPro Technologies (formerly Atiam Technologies LLC) revenues
from ASP, maintenance and licensing agreements.
-- Operating expenses for continuing operations of $3.7 million, compared
to $3.0 million in the third quarter of 2008. The increase was primarily
attributable to an increase in InsPro staffing and technology consultants
to support current client requirements and growth plans.
-- Net loss from continuing operations of $2.2 million, compared to $1.7
million in the third quarter of 2008. This increase is consistent with the
Company's strategy to enhance InsPro Technologies' capacity by increasing
expenditures for marketing, sales, infrastructure and product development.
-- Total net loss from continued and discontinued operations of $1.4
million or ($0.03) per share, compared with total net loss of $1.7 million,
or ($0.04) per share in the third quarter of 2008.
"We continue to make progress with our initiatives to further align our operations and cost structure with our promising technology business," said Anthony Verdi, Acting Principal Executive Officer of Health Benefits Direct and Chief Financial Officer. "We realized an $800,000 net gain from discontinued operations in the third quarter as we continue to reduce expenses that are not essential to our core technology business.
"In conjunction with our plan to continue to invest in our promising subsidiary, InsPro Technologies, we are working on obtaining additional financing through a rights offering of up to $8 million, which will give all of our shareholders the opportunity to participate in an equity investment in the Company on the same economic terms as our private placements in 2008 and 2009," Mr. Verdi concluded.
About Health Benefits Direct Corporation
Through its subsidiary, InsPro Technologies, Health Benefits Direct offers InsPro software, an internet-based marketing and administration system used by Insurance carriers and Third Party Administrators. Through its subsidiary, Insurint Corporation, Health Benefits Direct provides a proprietary, professional-grade, web-based agent quote engine portal that aggregates real-time quotes from more than 100 health insurance carriers, life insurance carriers and carriers of related insurance products. www.healthbenefitsdirect.com
Forward-Looking Statements
In addition to historical facts or statements of current condition, this press release contains forward-looking statements within the meaning of the "Safe Harbor" provisions of The Private Securities Litigation Reform Act of 1995, including statements regarding the growth potential of our technology platforms and obtaining additional financing through a rights offering to fund our operations. Forward-looking statements provide Health Benefits Direct's current expectations or forecasts of future events. Moreover, Health Benefits Direct cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from the statements made, including risks described in Health Benefit Direct's most recent Quarterly Reports on Form 10-Q or Annual Reports on Form 10-K filed with the Securities and Exchange Commission and available on Health Benefits Direct's website at www.healthbenefitsdirect.com. These documents are also available on the Securities and Exchange Commission's website at www.sec.gov. Health Benefits Direct does not undertake any obligation to update any forward-looking statement to conform the statement to actual results or changes in expectations.
Health Benefits Direct Corporation (OTCBB: HBDT), a leading technology innovator in the marketing, sales and administration of a range of insurance technology products, today announced its financial results for the third quarter ended September 30, 2009.
During the third quarter, the Company continued its previously announced restructuring activities. As part of these restructuring efforts, in the first quarter of 2009, the Company ceased selling health and life insurance products to individuals and families and disposed of a significant portion of its agency business, which is now classified as discontinued operations in the Company's financial statements.
Third Quarter Highlights
-- Revenues from continuing operations of $1.5 million, compared to $1.4
million in the third quarter of 2008. The increase was due primarily to
increased InsPro Technologies (formerly Atiam Technologies LLC) revenues
from ASP, maintenance and licensing agreements.
-- Operating expenses for continuing operations of $3.7 million, compared
to $3.0 million in the third quarter of 2008. The increase was primarily
attributable to an increase in InsPro staffing and technology consultants
to support current client requirements and growth plans.
-- Net loss from continuing operations of $2.2 million, compared to $1.7
million in the third quarter of 2008. This increase is consistent with the
Company's strategy to enhance InsPro Technologies' capacity by increasing
expenditures for marketing, sales, infrastructure and product development.
-- Total net loss from continued and discontinued operations of $1.4
million or ($0.03) per share, compared with total net loss of $1.7 million,
or ($0.04) per share in the third quarter of 2008.
"We continue to make progress with our initiatives to further align our operations and cost structure with our promising technology business," said Anthony Verdi, Acting Principal Executive Officer of Health Benefits Direct and Chief Financial Officer. "We realized an $800,000 net gain from discontinued operations in the third quarter as we continue to reduce expenses that are not essential to our core technology business.
"In conjunction with our plan to continue to invest in our promising subsidiary, InsPro Technologies, we are working on obtaining additional financing through a rights offering of up to $8 million, which will give all of our shareholders the opportunity to participate in an equity investment in the Company on the same economic terms as our private placements in 2008 and 2009," Mr. Verdi concluded.
About Health Benefits Direct Corporation
Through its subsidiary, InsPro Technologies, Health Benefits Direct offers InsPro software, an internet-based marketing and administration system used by Insurance carriers and Third Party Administrators. Through its subsidiary, Insurint Corporation, Health Benefits Direct provides a proprietary, professional-grade, web-based agent quote engine portal that aggregates real-time quotes from more than 100 health insurance carriers, life insurance carriers and carriers of related insurance products. www.healthbenefitsdirect.com
Forward-Looking Statements
In addition to historical facts or statements of current condition, this press release contains forward-looking statements within the meaning of the "Safe Harbor" provisions of The Private Securities Litigation Reform Act of 1995, including statements regarding the growth potential of our technology platforms and obtaining additional financing through a rights offering to fund our operations. Forward-looking statements provide Health Benefits Direct's current expectations or forecasts of future events. Moreover, Health Benefits Direct cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from the statements made, including risks described in Health Benefit Direct's most recent Quarterly Reports on Form 10-Q or Annual Reports on Form 10-K filed with the Securities and Exchange Commission and available on Health Benefits Direct's website at www.healthbenefitsdirect.com. These documents are also available on the Securities and Exchange Commission's website at www.sec.gov. Health Benefits Direct does not undertake any obligation to update any forward-looking statement to conform the statement to actual results or changes in expectations.
