OREM, Utah, Jan. 19, 2015 (GLOBE NEWSWIRE) -- ActiveCare Inc. (OTCBB:ACAR), a leader in diabetes management and wellness services for self-insured employers nationwide, reported financial results for the fiscal year ended September 30, 2014. "This past year has been one of significant progress and success, highlighted by the revenue growth in our Chronic Illness Monitoring platform," stated Michael Z. Jones, CEO of ActiveCare. "During the quarter ending September 30, 2014 we successfully added 2,400 new members to our diabetes management solution."
Fiscal Year Financial Results
The Company reported total revenues of $6,108,000 compared to $4,245,000 in fiscal year 2013, an increase of $1,863,000 or 44%. The increase was due to sales to new and existing customers and reflect the additional members added to our diabetes management solution.
Gross loss was $330,000 compared to gross profit of $922,000 in fiscal year 2013, a decrease of $1,252,000. The decrease in gross profit resulted primarily from an increase in the reserve for inventory obsolescence offset, in part, by the increase in sales.
Loss from continuing operations was $12,009,000 compared to $23,953,000 in the prior year. The decrease was due to decrease in interest expense of $3,648,000, a decrease in loss on induced conversion of debt and sale of common stock of $9,241,000 offset by the decrease in gross profit and an increase in operating expenses of $658,000.
The increase in operating expenses of $658,000 was primarily due to an increase in payroll and related taxes of $741,000, an increase in stock-based compensation expense of $139,000 offset by a decrease in investor relations expenses or $285,000.
- The decrease in other expenses of $13,855,000 was primarily due to a decrease in loss on induced conversion of debt and sale of common stock of $9,241,000 and a decrease in interest expense of $3,648,000 related to the conversion of debt and accrued interest to equity during fiscal years 2014 and 2013.
"The Company added 5,300 new members during fiscal year 2014 and we plan to build on this momentum during fiscal year 2015," continued Mr. Jones. "We are focused on strategic partnerships and continue to look for opportunities to expand existing relationships," concluded Jones.
ActiveCare, Inc. provides patented diabetes and chronic disease management and wellness solutions that increase visibility, lower costs and provide real-time care for members resulting in improved outcomes. Utilizing state-of-the-art meters with embedded cellular technology, trained CareSpecialists can intervene in real-time and provide members with the support needed to control their disease 24 hours a day, every day. Headquartered in Orem, Utah and publicly traded on the OTC Bulletin Board under symbol ACAR, ActiveCare's solution is revolutionizing the way employers, individuals and their health plans monitor chronic disease. To learn more about ActiveCare, Inc., visit the website at www.activecare.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Our actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, including global economic conditions generally, regulatory uncertainty and economic pressure on the healthcare industry in particular, the governmental regulation of our products, manufacturing and marketing risks, adverse publicity risks, and risks associated with assimilating our recent acquisitions. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in our most recent filings with the Securities and Exchange Commission.
CONTACT: Company Contact: Bryan Dalton, Director of Market Strategies ActiveCare, Inc. (877) 862-5545
Released January 19, 2015