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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) - July 15, 1999
MEDICAL MANAGER CORPORATION
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(Exact Name of Registrant as Specified in Charter)
Delaware 0-29090 59-3396629
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(State or Other Jurisdiction (Commission (IRS Employer of
of Incorporation) File Number) Identification No.)
3001 North Rocky Point Drive East, Suite 400, Tampa, Florida 33607
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(Address of Principal Executive Offices) (Zip Code)
(Registrant's Telephone Number, Including Area Code) (813) 287-2990
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Not Applicable
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(Former Name or Former Address; if Changed Since Last Report)
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Item 5. Other Events.
This Current Report on Form 8-K is being filed for the purpose of disclosing the
press release filed as Exhibit 99.1 hereto.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
Exhibit No. Description
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99.1 Press Release
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MEDICAL MANAGER CORPORATION
July 15, 1999 By: /s/ Lee A. Robbins
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Lee A. Robbins
Vice President and
Chief Financial Officer
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EXHIBIT 99.1
MEDICAL MANAGER CORPORATION ANNOUNCES SECOND QUARTER RESULTS - REPORTS $0.25
EPS ON 28% SALES GAIN -
TAMPA, Fla., July 15 / PRNewswire/ -- Medical Manager Corporation (Nasdaq: MMGR
- - news) today announced financial results for the second quarter ended June 30,
1999.
Total revenues for the second quarter rose 28% to $44,447,000 compared to
revenues of $34,608,000 in the second quarter of 1998. Net earnings increased
25% to $5,835,000 or $0.25 per diluted share, compared with earnings of
$4,668,000, or $0.21 per diluted share in last year's second quarter.
For the six month period ended June 30, 1999, revenue grew 30% to $86,171,000
from $66,094,000 in the first half of 1998. Net earnings for the six month
period increased 39% to $11,395,000, or $0.48 per diluted share, compared to
$8,217,000, or $0.37 per diluted share reported last year.
As previously announced, Medical Manager Corp. and Synetic, Inc. (Nasdaq: SNTC
- - news) have agreed to merge -- the merger will be voted on during the
shareholders meeting scheduled for July 23, 1999.
Commenting on the results, John Kang, President stated, "We are pleased with
our solid results for the second quarter that continue to reflect strong market
conditions and increased demand in all aspects of our business. Our 28% revenue
growth was driven by new system sales, product upgrades, and our EDI
initiatives. During the quarter, we installed 2,400 Version 9 systems, both new
and upgrades. In addition, we continue to see strong demand for our EDI
services and have signed up over 15,700 providers by the end of the second
quarter and have generated $2.9 million in revenues during the quarter."
Mr. Kang added, "Earlier this week, we announced the acquisition of Wismer
Martin, a subsidiary of Physician Computer Network, Inc. (PCN). We are excited
about this transaction as it strengthens our leadership position by adding
approximately 1,000 additional client sites in the Pacific Northwest market."
He continued, "Medical Manager also entered into an exclusive arrangement to
provide web-based physician portal services and clinical e-commerce
transactions to PCN's entire client base. As we anticipate the closing of our
pending merger with Synetic, we look forward to working closely with CareInsite
(Nasdaq: CARI - news) Synetic's healthcare e-commerce subsidiary, to offer PCN
customers these services."
Medical Manager Corporation develops, markets, implements and supports The
Medical Manager physician practice management system, which addresses the
financial, administrative, clinical and practice management needs of
physicians. Since its development in 1982, The Medical Manager software's
installed base has grown to more than 25,000 client sites representing 130,000
physicians, making it the most widely installed physician practice management
system in the United States.
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EXHIBIT 99.1
The Medical Manager web site is located at http://www.medicalmanager.com.
This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Act of 1995 (the "Act"). These statements are
based on current plans and expectations of Medical Manager Corporation and
involve risks and uncertainties that could cause actual future activities and
results of operations to be materially different from those set forth in the
forward-looking statements. Important factors that could cause actual results
to differ include, among others, the success of the marketing, sales, and
installation of the Company's products, success of the beta listing program for
the latest version of the Company's software, continued demand for the
Company's products by the independent resellers, risks associated with the
Company's acquisition program, variations in stock prices, changes in
government regulations, competition, and risks of operations and growth of newly
acquired businesses. Forward-looking information provided by the Company under
the Act should be evaluated in the context of the foregoing factors and the
risk factors described in the Company's filings with the Securities and
Exchange Commission, including its April 23, 1998 prospectus and 1998 form
10-K. The Company expressly disclaims any intent or obligation to update these
forward-looking statements.
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EXHIBIT 99.1
MEDICAL MANAGER CORPORATION
Statements of Operations
(In thousands, except earnings per share data)
<TABLE>
<CAPTION>
Three Months Ended Six months Ended
June 30, June 30,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Revenue
Systems $ 27,026 $ 21,868 $ 54,711 $ 41,916
Maintenance and other 17,421 12,740 31,460 24,178
Total revenue 44,447 34,608 86,171 66,094
Cost of revenue
Systems 13,281 9,983 26,252 19,844
Maintenance and other 8,951 7,095 16,758 13,353
Total costs of revenue 22,232 17,078 43,010 33,197
Gross margin 22,215 17,530 43,161 32,897
Operating expenses
Selling, general and administrative 11,207 8,896 21,697 16,759
Research and development 1,394 1,139 2,690 2,165
Depreciation and amortization 1,317 813 2,507 1,553
Total operating expenses 13,918 10,848 26,894 20,477
Income from operations 8,297 6,682 16,267 12,420
Other income (expense)
Interest expense (12) (31) (23) (160)
Interest income 688 383 1,262 452
Other income (expense) 2 (15) 21 2
Income before income taxes 8,975 7,019 17,527 12,714
Income taxes 3,140 2,351 6,132 4,497
Net income $ 5,835 $ 4,668 $ 11,395 $ 8,217
Basic net income per common share $ 0.26 $ 0.22 $ 0.51 $ 0.39
Shares used in computing Basic EPS 22,480 21,702 22,479 21,161
Diluted net income per common share $ 0.25 $ 0.21 $ 0.48 $ 0.37
Shares used in computing Diluted EPS 23,591 22,680 23,499 22,100
</TABLE>
