HealthGate Data Corp. Reports Fourth Quarter and Year-End Results; Year of Transition Completed -- Company Now Poised for Growth.

Publication: Business Wire

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COPYRIGHT 2002 Business Wire

Business Editors & Health/Medical Writers

BURLINGTON, Mass.--(BUSINESS WIRE)--Jan. 31, 2002

HealthGate(R) Data Corp. (NASDAQ: HGAT), a market-leading provider and electronic publisher of healthcare information, today announced financial results for the fourth quarter and fiscal year ended December 31, 2001.

Fourth Quarter Results

Total revenue for the fourth quarter of 2001 was $2.1 million compared with $2.3 million for the comparable period of 2000. Substantially all of the revenue in the fourth quarter of 2001 was derived from services revenue compared to $2.1 million of services revenue in the quarter ended December 31, 2000. The fourth quarter 2000 reported results included $0.2 million of revenues from advertising, sponsorship and e-commerce activities. These activities were eliminated in the fourth quarter of 2000 due to a change in HealthGate's operating model that focused the company on building its content services activities. As a result, there are no significant revenues from the eliminated activities in the fourth quarter or year ended December 31, 2001.

The company reported a net loss of $1.3 million or a loss per share of $0.21 for the fourth quarter of 2001 compared to a net loss of $16.2 million or a per share loss of $2.70 in the fourth quarter of 2000. All per share amounts for the current and prior year periods are reported on a split-adjusted basis reflecting the company's 3-for-1 reverse split effective July 1, 2001. The improvement in loss per share underscores the company's shift in business strategy, the results of restructuring operations and lowering its cost profile.

"The fourth quarter completes a year of transition for HealthGate's business model," said Bill Reece, HealthGate's CEO. "It is fitting that we reached another important milestone during the fourth quarter by achieving our goal of attaining positive cash flow. We continued the development of our business in a number of areas including: signed HCA as the first beta participant for Project Intellect, re-constituted our sales force with proven content...

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