CINCINNATI, May 24 /PRNewswire/ -- LanVision Systems, Inc. (Nasdaq: LANV) today announced financial results for the first quarter ended April 30, 1999. Revenues for the first quarter ended April 30, 1999 were $2,372,048, compared with $3,605,030, reported in the first quarter of last year. The net loss for the quarter was $1,559,020, or $0.18 per basic and diluted shares, compared with a net loss of $3,136,085, or $0.36 per basic and diluted shares, in the first quarter of fiscal 1998. Brian Patsy, President and Chief Executive Officer, commented, "Revenues for the quarter approximated our internal plan which considered the impact on our revenues of the Year 2000 remediation by many healthcare organizations. During the quarter, LanVision announced that its remarketing partner, Shared Medical Systems Corporation (SMS), had signed a significant new contract with Pitt County Memorial Hospital. However, revenue on the contract has been deferred until certain integration between LanVision's and SMS's software applications is completed. In total, LanVision has deferred revenue recognition of revenue on approximately $1,270,000 of software royalties related to four contracts sold by SMS. The integration is expected to be completed in the second quarter. SMS is achieving success in their selling efforts and we anticipate our remarketing relationship with SMS will continue to enhance our distribution capabilities. "LanVision improved operating results by over $2,000,000 compared with the first quarter of fiscal 1998 and improved operating results by over $1,200,000 compared with the fourth quarter of 1998. LanVision has made significant progress in its efforts to lower the Company's cost structure, and LanVision's operating results have improved in four of the last five quarters. We believe our significant investment in product development, improved distribution through SMS, and a lower cost structure positions the Company for renewed revenue growth and a return to operating profitability in the coming current fiscal year." LanVision is a leading provider of Healthcare Information Access Systems and outsourced data center operations that enable hospitals and integrated healthcare networks to capture, store, manage, route, retrieve and process vast amounts of clinical and financial patient information. The Company's systems deliver on-line enterprise-wide access to fully updated patient information which historically was maintained on a variety of media, including paper, magnetic disk, optical disk, x-ray film, video, audio and microfilm. LanVision's systems, which incorporate data management, document imaging/management and workflow technologies, consolidate patient information into a single repository and provide fast and efficient access to patient information from universal workstations located throughout the enterprise, including the point of patient care. The systems are specifically designed to meet the needs of physicians and other medical and administrative personnel and can accommodate multiple users requiring simultaneous access to patient information, thereby eliminating file contention. By providing access to all forms of patient information, the Company believes that its Healthcare Information Access Systems are essential components of the computer-based patient record. LanVision has installed its ChartVision(R) Healthcare Information Access System, or AccountVision(TM) Patient Financial Services System in an impressive list of leading healthcare providers including UCSF Stanford Healthcare, University of Pittsburgh Medical Center, Albert Einstein and Beth Israel Medical Centers, the Medical College of Georgia and Medical University of South Carolina, and Memorial Sloan-Kettering Cancer Center. "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Statements made by LanVision that are not historical facts are forward-looking statements that are subject to risks and uncertainties. LanVision's future financial performance could differ materially from expectations of management and from results reported now or in the past. Factors that could cause LanVision's financial performance to so differ include, but are not limited to, the impact of competitive products and pricing, product development, reliance on strategic alliances, availability of products procured from third party vendors, the healthcare regulatory environment, fluctuations in operating results, and other risks detailed from time to time in LanVision's filings with the U.S. Securities and Exchange Commission. LanVision Systems, Inc. and Subsidiary Consolidated Statements of Operations Three Months Ended April 30, 1999 1998 Revenues: Systems sales $ 926,970 $ 2,106,930 Services, maintenance and support 1,290,153 1,435,600 Service bureau operations 154,925 62,500 Total revenues 2,372,048 3,605,030 Operating expenses: Cost of systems sales 435,464 778,721 Cost of services, maintenance and support 930,045 1,526,676 Cost of service bureau operations 426,419 622,269 Selling, general and administrative 1,261,239 2,466,221 Product research and development 546,012 1,450,491 Total operating expenses 3,599,179 6,844,378 Operating (loss) (1,227,131) (3,239,348) Other income (expense): Interest income 48,944 103,263 Interest (expense) (380,833) -- Net (loss) $(1,559,020) $(3,136,085) Basic net (loss) per common share $(0.18) $(0.36) Diluted net (loss) per common share $(0.18) $(0.36) Number of shares used in per common share computations 8,814,520 8,806,000 LanVision Systems, Inc. and Subsidiary Condensed Consolidated Balance Sheets April 30, Assets 1999 1998 Current assets: Cash and cash equivalents $4,147,981 $1,599,979 Investment securities -- 313,729 Accounts receivable, net of allowance for doubtful accounts of $340,000 and $280,000, respectively 3,785,065 3,329,023 Unbilled receivables 2,010,404 1,786,325 Other 1,113,055 1,105,089 Total current assets 11,056,505 8,134,145 Property and equipment: Computer equipment 4,435,006 4,291,483 Computer software 590,591 517,549 Office furniture, fixtures and equipment 1,543,772 1,491,010 Leasehold improvements 930,920 997,141 7,500,289 7,297,183 Accumulated depreciation and amortization (3,754,533) (1,990,825) 3,745,756 5,306,358 Investment securities -- 4,445,492 Capitalized software development costs, net of accumulated amortization of $965,228 and $711,896, respectively 779,701 661,034 Other 91,340 84,894 $15,673,302 $18,631,923 Liabilities, convertible redeemable preferred stock and stockholders' equity Current liabilities: Accounts payable $590,952 $1,159,541 Accrued compensation 339,668 973,437 Accrued other expenses 2,425,595 1,784,049 Deferred revenues 1,405,061 1,076,224 Total current liabilities 4,761,276 4,993,251 Long-term debt 6,000,000 -- Long-term accrued interest 624,000 -- Convertible redeemable preferred stock, $0.01 par value per share, 5,000,000 shares authorized -- -- Stockholders' equity: Common stock, $0.01 par value per share, 25,000,000 shares authorized, 8,896,500 shares issued 88,965 88,965 Capital in excess of par value 35,102,459 35,110,817 Treasury stock, at cost 81,980 and 990,500 shares respectively (389,692) (430,188) Accumulated (deficit) (30,513,706) (21,164,800) Accumulated other comprehensive income -- 33,878 Total stockholders' equity 4,288,026 13,638,672 $15,673,302 $18,631,923  