Healthways, a Franklin, Tenn.-based developer of wellness and population-health management programs, significantly reduced its losses in the first quarter of the year, after poor financial performance in 2013 and 2014.
The company reported a $2.9 million loss in the three months ended March 31, a 70% improvement from its $9.6 million loss during the same period in the prior year. Healthways was able to stem its losses thanks to increased revenue, which rose 7% to $189.9 million, up from $176.8 million during the first quarter of 2014.
The company also benefited by starting the year with one less expense. During the first quarter of 2014, Healthways recorded a $9.4 million one-time charge to settle a contractual dispute with Blue Cross and Blue Shield of Minnesota.
Healthways affirmed its forecast for the 2015 fiscal year, which included revenue between $800 million and $825 million and net earnings of $0.23 to $0.35 per diluted share.
The company managed to make a $2.6 million profit in the fourth quarter of 2014, but has otherwise been plagued by persistent losses. Healthways decided last month that it would remain independent, despite pressure from hedge fund North Tide Capital, its largest shareholder, to consider a sale.