Medical Dynamics, Inc. (Englewood, CO), a provider of dental practice management software and technology, announced increased sales—-and losses--for its fiscal second quarter ended March 31.
The company reported that net sales for the second quarter increased 138% to $3,182,800 compared to $1,337,700 in the second quarter of fiscal 1998. Net loss for the quarter was $1,302,500, or 13 cents per basic share, versus a net loss of $257,700, or three cents per basic share, in the comparable quarter last year.
The company said that its increased revenues reflect the continued growth of its wholly-owned subsidiary Computer Age Dentist, Inc. (CADI), which designs, develops and markets practice management software and integrates complementary technologies that streamline the operation of dental practices.
Going forward, management expects demand for CADI's Windows-based software to be amplified by the Year 2000 deadline – which promises to make many older practice management systems obsolete, the company said. International initiatives, including a new software product and joint marketing partnership in Sweden, are also expected to contribute to growing revenues. CADI said it entered the third quarter with a backlog of customer orders in excess of one million dollars.
The company said that net losses were impacted by ongoing, non-cash depreciation and amortization costs related to acquisitions made in 1997 and 1998, including CADI, Information Presentation Systems and Command Dental Systems. Also contributing to net losses were investments in an expanded sales force -- which has grown to 35 from 12 at the time of the CADI acquisition -- and other support infrastructure to establish nationwide coverage for the company's new products, according to a press release.
Van Horsley, president and CEO, said that the company has implemented aggressive cost-cutting measures to stimulate a move toward profitable operations. In April, Medical Dynamics closed its Englewood, CO, camera manufacturing plant in favor of purchasing cameras from outside distributors, the firm said. Medical Dynamics also plans to reduce management compensation and make other cuts, including personnel cuts.