April 28, 2005

Supply chain management software developer Neoforma says it posted a net loss of $16.9 million on revenue of $2.62 million for the first quarter of its fiscal 2005, ended March 31. This represents a net loss of $0.87 per share. The company's software is used in the healthcare industry.

That compares to a net loss of $13.2 million, or 69 cents diluted share, on revenue of $2.93 million a year earlier.

"While we are exploring strategic alternatives, we continue to maintain our focus on serving our customers with a high level of passion and commitment to their success," says Bob Zollars, chairman and chief executive officer of Neoforma of San Jose.

The company says it ended the quarter with $30.5 million in cash, cash equivalents and short-term investments.

"Neoforma's financial performance in the first quarter generally met our expectations," says Andrew Guggenhime, chief financial officer of Neoforma, in a written statement.

"We met our revenue guidance and increased the strength of our balance sheet. Our expenses increased largely due to planned investments in our business to support our strategy and a reduction in software development costs capitalized."

Neoforma says it expects to generate approximately $2.8 million in GAAP revenue in the second quarter of 2005.

Source: Silicon Valley Business Journal