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The Quantum Group Announces 1st Quarter Financial Results for Fiscal Year 2009

Posted on: Tuesday, 24 March 2009, 06:00 CDT

WELLINGTON, Fla., March 24 /PRNewswire-FirstCall/ -- The Quantum Group, Inc. (NYSE Amex: QGP) (www.QuantumMD.com) announced financial results for 1st quarter of fiscal year 2009 and reported revenues of $7,363,593 for the quarter ending January 31, 2009. The Company reported $2,739,475 in revenues for the same quarter of fiscal year 2008, marking an increase of nearly 168%. The reported revenues also reflect a 32% increase from the fourth quarter of 2008 of $5,565,009.

The Company reported a loss from operations of $3,741,495 in the first quarter of fiscal year 2009 versus $2,794,903 from the same quarter in fiscal year 2008. This reflects an increase of 34%. The cash used from operating activities during the first quarter of fiscal year 2009 was $1,485,090 as compared to $1,980,099 for the first quarter of fiscal year 2008, which represents a reduction of 25% from the first quarter of 2008. The Company reported a loss of $3,830,581 for the quarter versus $10,689,225 for the first quarter of fiscal year 2008, and resulted in a loss per share of $0.40 versus $1.85 per share for the same period in 2008. The reduction in the net loss was due to the reduction in financing costs.

Noel J. Guillama, President & CEO of The Quantum Group, commented, "We are pleased by the continued progress of our core business operations. Renaissance continues to expand contractual relationships and we expect to add two national payers this year. We are in negotiations with payers for the bulk transfer of patient lives in both Medicare and Medicaid to be managed by Renaissance. These expansions are expected to occur after the close of open enrollment (March 31st) and are anticipated to have an impact on upcoming quarters. We continue to make great strides with our internal reporting and management controls within the patient care operations. This will enable us to continue to reduce our costs as we realize greater efficiencies and savings. Additionally, Renaissance is exploring expansion into additional states by the end of the calendar year."

Guillama continued, "Quarter over quarter our results demonstrate the strength of our business model and we expect this upward trajectory to be further enhanced by the continued deployment of our state-of-the-art healthcare technology platform PWeR(TM) (Personal Wellness electronic Record) throughout this year. We believe the opportunities ahead for PWeR will be of great value to our 2,000 affiliated providers. Further, as a patient centric platform, PWeR has the ability to connect and provide value to payers, facilities and providers, as well as state and federal governmental agencies and is directly in line with the objectives of the federal Stimulus Package. The platform represents multiple potential revenue channels for Quantum and our sales and development efforts are underway to facilitate that growth. We believe we have the right technology platform at the right time and with a solid foundation on which to build. Further, we believe that the results of our efforts will be demonstrated as the year progresses and we explore expansion to various states before the end of the calendar year."

The Stimulus Package (American Recovery and Reinvestment Act of 2009) has designated $19.2 billion for the healthcare industry, largely to computerize the industry and improve the quality of patient care. The Company believes PWeR will benefit as the Stimulus provides for economic incentives for providers and hospitals to implement and utilize electronic health record systems.

About The Quantum Group, Inc.

The Quantum Group is an innovation-driven Healthcare Services Organization (HSO) that provides business process solutions, service chain management, strategic consulting and leading edge technology to the healthcare industry.

We have developed PWeR(TM), a cutting-edge, patent-pending healthcare technology platform that we believe to be in line with President Obama's agenda for healthcare reform. The Stimulus Package provides $19.2 billion for the implementation of healthcare information technology to infuse efficiencies, reduce costs and improve the quality of patient care. PWeR can integrate all of the functions a physician/provider, hospital, clinic and related professionals utilize in one patient-centric, web-based platform and falls well within the economic incentives offered by the new law. We believe we are positioned to be a catalyst for change as we take aim at the $700 billion inefficiency gap in the United States healthcare industry.

Certain statements contained in this news release, which are not based on historical facts, are forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995, and are subject to substantial uncertainties and risks in part detailed in the respective company's Securities and Exchange Commission 10-K, 10-Q, S-8, SB-2, S-1 and 8-K filings (and amendments thereto) that may cause actual results to materially differ from projections. Forward-looking statements can be identified by the use of words such as "expects," "plans," "will," "may," "anticipates," "believes," "should," "intends," "estimates" "could" and other words of similar meaning. These statements are subject to risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by these forward-looking statements. Such risk factors include, without limitation, the ability of the Company to properly execute its business model, to raise substantial and immediate additional capital to implement its business model, to continue revenue growth trend in fiscal year 2009, to control patient medical cost relative to income received, to attract and retain executive, management and operational personnel, to continue growing its patient base, to negotiate favorable current debt and future capital raises, to negotiate favorable agreements with a diversified provider base and to continue to supply the services needed by its HMO clients as well as physician clients. We have further risk in the deployment of our technology platform, the utilization by our clients, technical and software setbacks, cost of development, as well as the capital to deploy it. We are subject further to interruptions of service. Company does not undertake any obligation to publicly update any forward-looking statements. As a result, investors should not place undue reliance on these forward-looking statements.

FOR MORE INFORMATION, PLEASE CONTACT: PR Financial Marketing Jim Blackman: 713-256-0369 jim@prfmonline.com or Red Chip Companies Dave Gentry: 407-644-4256 dave@redchip.com or The Quantum Group, Inc. Danielle Amodio: 561.798.9800 DAmodio@QuantumMD.com

SOURCE The Quantum Group, Inc.

Source: PR Newswire

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