The TriZetto Group, a healthcare management and transactions software vendor based in Newport Beach, Calif., said Tuesday that it recorded its first quarterly profit based on generally accepted accounting principles since it became a public company in June 2001.
For the three months ended Sept. 30, TriZetto had net income of $630,000, or 1 cent per diluted share, reversing a $3.5 million (8 cent-per-share) loss during the same period a year earlier. Revenues increased by 10.8% from the 2002 third quarter, to $76 million from $68.6 million.
"I am very pleased to be announcing TriZetto's first GAAP profitable quarter as a public company," Chairman and CEO Jeff Margolis says in a written statement. "This achievement was primarily due to improved financial management, including collections, contract compliance, expense containment and capital control. We also continued to refine and narrow the company's scope towards our most profitable businesses."
TriZetto says it signed 365 contracts with an aggregate value of $37.4 million during the quarter. The majority of deals are for consulting, implementation and software customization services, according to the company.
On a pro-forma basis--excluding expenses related to acquisitions consummated prior to 2002--earnings actually slipped by 35.5%, to $2.9 million for the 2003 third quarter from the previous year's $4.5 million.
TriZetto still is in the red for the year, though it is closing the deficit. The company reports a net loss for the nine months ended Sept. 30 of $3.4 million, about 71% smaller than its $11.7 million shortfall from January to September 2002.