Big Quarter, Big Deal for athenahealth

HDM Breaking News, May 8, 2008

The stock price of athenahealth Inc. increased more than 9% on May 7 after the physician software and outsourced billing services vendor reported positive financial results for the first quarter of 2008.

The Watertown, Mass.-based company also announced that in April it signed a contract to provide services to Minneapolis-based MinuteClinic LLC, a chain of retail clinics that is a subsidiary of pharmacy vendor CVS Corp., Woonsocket, R.I. The deal could add 500 clinics to athenahealth's client list.

Athenahealth in the first quarter had net income of $1.8 million, compared with a $2.7 million loss during the same period last year. Quarterly revenue rose 36% to $29.8 million.

The company posted $797 million in collections to client accounts in the first quarter, a 31.5% increase compared with the first quarter of 2007. Active physician clients rose 28% to 9,810.

The vendor, which went public in late 2007, ended the quarter with cash and equivalents of $66.5 million and debt of $1.7 million. More information is available at athenahealth.com.

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