UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report( Date of earliest event reported): September 8, 2003 LanVision Systems, Inc. ----------------------- (Exact name of registrant as specified in its charter) Delaware 0-28132 31-1455414 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 5481 Creek Road, Cincinnati, OH 45242-4001 - -------------------------------------------------------------------------------- (Address of principal executive offices) Registrant's telephone number, including area code (513) 794-7100 ------------------------------ Item 12 RESULTS OF OPERATIONS AND FINANCIAL CONDITION On September 8, 2003, LanVision Systems, Inc. ("LanVision") issued the press release attached hereto as Exhibit 99.1, which press release contains financial information about LanVision's second completed fiscal quarter of 2003. The information hereunder shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
SIGNATURES Pursuant to the requirements of the Securities Act of 1934, registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. LanVision Systems, Inc. Date: September 8, 2003 By: /s/ Paul W. Bridge, Jr. ----------------------- Paul W. Bridge, Jr. Chief Financial Officer INDEX TO EXHIBITS Exhibit No. Description of Exhibit 99.1 News Release of LanVision Systems, Inc. Dated September 8, 2003 Second Quarter Earnings News Release 2
Exhibit 99.1 LANVISION SYSTEMS, INC. News Release of LanVision Systems, Inc. Dated September 8, 2003 NEWS RELEASE Visit our web site at: www.lanvision.com ----------------- COMPANY CONTACT: PAUL W. BRIDGE, JR. CHIEF FINANCIAL OFFICER (513) 794-7100 FOR IMMEDIATE RELEASE - --------------------- LANVISION SYSTEMS REPORTS SECOND QUARTER FISCAL 2003 RESULTS Cincinnati, Ohio, September 8, 2003 --- LanVision Systems, Inc. (NASDAQ: LANV) today announced the financial results for the second quarter and first six months ended July 31, 2003. Revenues for the second quarter were $2,966,590 compared with $3,272,188 reported in the second quarter of last year. The operating income for the second quarter of fiscal 2003 was $646,559, compared with operating income of $649,994 in the second quarter of fiscal 2002. Net earnings for the quarter were $213,596, or $0.02 per basic and diluted common share, compared with net earnings of $201,632, or $0.02 per basic and diluted common share in the second quarter of fiscal 2002. Revenues for the first six months were $5,586,572, compared with $6,305,407 reported in the first six months of last year. The operating income for the first six months of fiscal 2003 was $398,542 compared with operating income of $1,181,346 in the comparable prior period. The Net Loss for the first six months was ($462,196), or ($0.05) per basic and diluted common share, compared with net earnings of $299,901, or $0.03 per basic and diluted common share in the first six months of last year. Second Quarter Highlights include: - Announced the new strategic relationships with: Health InfoSite, Inc. and Kforce(R) Inc., both of which provide medical coding services using LanVision's codingANYware(TM), our integrated coding and abstract workflow solution; - Announceda referral marketing agreement with United Audit Systems, Inc., a national health care consulting and outsourcing firm providing Health Information Management and patient financial services; - Announced that two valued customers, Memorial Sloane-Kettering Cancer Center and the University of Pittsburgh Medical Center, upgraded and expanded their systems to 3
LanVision's newest generation product accessANYware(TM), our web-based thin client medical records workflow solution and health information repository; - LanVision continued to pay down the long term debt amounting to $2,000,000 during the last 12 months and believes that it will be able to comply with all of the loan covenants through the loan maturity date, and - Favorably settled three outstanding litigation issues relating to lawsuits that were initiated by LanVision to protect its intellectual property rights, to enforce non-competition covenants and/or to prevent third parties from improperly interfering in LanVision's businesses. Accordingly, we anticipate our legal expenses will be reduced during the remainder of the fiscal year. Brian Patsy, LanVision's Chairman and Chief Executive Officer, stated, "Our current quarter net earnings was in line with our operating plan. The operating results reflect primarily a decline in net new software licensing revenues due to delayed purchasing decisions, offset to some extent with increased application-hosting revenues, when compared to the prior comparable periods. Because the size of deals and timing of revenue recognition on high margin software licensing significantly affects operating results, the comparability of operating results among fiscal quarters can be skewed. Traditionally, the first two quarters are the most challenging because of the seasonality of software licensing revenues, which LanVision has experienced in the past, with a greater portion of the annual revenues recorded in the later two quarters. The current sales pipeline contains significant new opportunities that we anticipate closing during the remainder of the fiscal year. Our ASPeN(SM) application service provider (ASP) based recurring revenues continue to grow as we expand our distribution and direct sales of our application-hosting services such as codingANYware(TM). Based on our current projections for the second half of the fiscal year, we believe that net new software revenues from the current sales pipeline and ASP hosting services should increase and enable us to continue to be profitable for the remainder of the fiscal year." Mr. Patsy concluded, "The U. S. Department of Health and Human Services (HSS) has asked the Institute of Medicine to design a standardized model of an electronic health record, in a move that may help accelerate nationwide acceptance of Electronic Medical Records. The tentative date for the completed design is 2004. The impact of such change, if implemented by HSS, on current LanVision products and services is unknown at this time. However, LanVision believes that its software and systems are sufficiently flexible to accommodate quickly any changing regulatory requirements. The changing healthcare regulations and increasing demand for health care productivity improvements, coupled with our expanding distribution channels and product offerings, create significant market opportunities for LanVision. We will continue to invest in the people and technology to ensure that all our products and services lead the market and to meet the growing expectations of the healthcare community." CONFERENCE CALL INFORMATION In conjunction with LanVision's Second Quarter Fiscal 2003 earnings release, you are invited to listen to its conference call, which will be broadcast live over the Internet on September 9, 2003, at 10:00 a.m. Eastern Time, at www.lanvision.com and www.vcall.com, where you enter the ticker symbol LANV in the vcall search box. 4
ABOUT LANVISION SYSTEMS LanVision is an application service provider (ASP) and leading supplier of workflow and document imaging-based tools, applications and services assist strategic business partners, healthcare organizations and customers in improving operational efficiency through business process re-engineering and automating labor-intensive paper processes. The company's workflow-based services offer solutions to specific healthcare business processes within the revenue cycle, such as remote coding, abstracting and chart completion, remote physician order processing, pre-admission registration scanning, insurance verification, secondary billing services, explanation of benefits processing and release of information processing. LanVision's products and services create an integrated repository of historical health information that is complementary and can be seamlessly "bolted on" to existing clinical, financial and management information systems, providing convenient electronic access to all forms of patient information from any location, including web-browser based access via the Intranet/Internet. These integrated systems allow providers and administrators to improve dramatically the availability of patient information while decreasing direct costs associated with document retrieval, workflow processing, completion, retention and archiving. LanVision provides its ASPeN, ASP-based application-hosting services to The University Hospital, a member of The Health Alliance of Greater Cincinnati, and Children's Medical Center of Columbus, among others. In addition, LanVision has installed its workflow and document imaging solutions at leading healthcare providers including Stanford Hospital and Clinics, the Albert Einstein Health Network, Beth Israel Medical Centers, the University of Pittsburgh Medical Center, Medical University Health Authority of South Carolina, and Memorial Sloan-Kettering Cancer Center. For more information on LanVision and its products, visit the LanVision web site at www.lanvision.com "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. (C)2003 LanVision Systems, Inc., Cincinnati, OH 45242. All rights reserved. 5
LANVISION SYSTEMS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Six Months Ended July 31, July 31, -------------------------- -------------------------- 2003 2002 2003 2002 ---- ---- ---- ---- Revenues: Systems sales $ 889,963 $ 1,235,151 $ 1,512,459 $ 2,672,505 Services, maintenance and support 1,630,309 1,844,903 3,199,553 3,245,772 Application-hosting services 446,318 192,134 874,560 387,130 ----------- ----------- ----------- ----------- Total revenues 2,966,590 3,272,188 5,586,572 6,305,407 Operating expenses: Cost of systems sales 443,307 277,703 905,770 643,904 Cost of services, maintenance and support 667,540 819,511 1,330,417 1,537,921 Cost of application-hosting services 214,128 75,680 429,496 142,329 Selling, general and administrative 534,043 906,547 1,478,241 1,750,074 Product research and development 461,013 542,753 1,044,106 1,049,833 ----------- ----------- ----------- ----------- Total operating expenses 2,320,031 2,622,194 5,188,030 5,124,061 ----------- ----------- ----------- ----------- Operating income 646,559 649,994 398,542 1,181,346 Other income expense: Interest income 17,316 27,829 36,350 57,752 Interest expense (450,279) (476,191) (897,088) (952,197) Tax benefit - - - 13,000 ----------- ----------- ----------- ----------- Net earnings (loss) $ 213,596 $ 201,632 $ (462,196) $ 299,901 =========== =========== =========== =========== Basic net earnings (loss) per common share $ 0.02 $ 0.02 $ (0.05) $ 0.03 =========== =========== =========== =========== Diluted net earnings (loss) per common share $ 0.02 $ 0.02 $ (0.05) $ 0.03 =========== =========== =========== =========== Number of shares used in per common Share computation - basic 8,991,517 8,927,966 8,978,207 8,921,073 =========== =========== =========== =========== Number of shares used in per common Share computation - diluted 9,179,751 9,184,346 8,978,207 9,208,693 =========== =========== =========== =========== 6
LANVISION SYSTEMS, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS July 31, July 31, January 31, 2003 2002 2003 ------------ ------------ ------------ Assets Current assets: Cash and cash equivalents (restricted by long-term debt agreement) $ 5,734,314 $ 6,419,816 $ 7,242,230 Accounts receivable 2,206,102 2,287,319 1,899,767 Contract receivables 2,875,807 2,213,345 3,074,596 Allowance for doubtful accounts (400,000) (400,000) (400,000) Other 396,533 428,461 326,180 ------------ ------------ ------------ Total current assets 10,812,756 10,948,941 12,142,773 Property and equipment: Computer equipment 2,418,051 2,430,353 2,351,203 Computer software 787,593 730,774 743,204 Office furniture, fixtures and equipment 1,161,551 1,153,934 1,153,934 Leasehold improvements 157,492 131,248 153,549 ------------ ------------ ------------ 4,524,687 4,446,309 4,401,890 Accumulated depreciation and amortization (3,426,660) (3,193,530) (3,137,943) ------------ ------------ ------------ 1,098,027 1,252,779 1,263,947 Capitalized software development costs, net of accumulated Amortization of $2,350,228, $1,900,228 and $2,100,228 respectively 1,539,701 1,289,701 1,389,701 Long-term installment receivables 433,339 433,339 433,339 Other 46,691 133,585 107,316 ------------ ------------ ------------ $ 13,930,514 $ 14,058,345 $ 15,337,076 ============ ============ ============ Liabilities, convertible redeemable preferred stock and stockholders' equity Current liabilities: Accounts payable $ 560,709 $ 427,457 $ 721,402 Accrued compensation 210,355 441,852 308,658 Accrued other expenses 1,136,134 1,370,095 1,392,157 Deferred revenues 2,137,460 1,536,495 2,220,383 Current portion of capitalized leases 213,004 188,694 206,051 Current portion of long term-debt 2,000,000 2,000,000 2,000,000 Long-term accrued interest currently payable 3,824,020 - - ------------ ------------ ------------ Total current liabilities 10,081,682 5,964,593 6,848,651 Non-current portion of capitalized leases 280,050 465,436 388,320 Long-term debt - 2,000,000 1,000,000 Long-term accrued interest - 2,383,521 3,133,369 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, 9,009,567 shares 8,945,338 shares and 8,959,004 shares issued, respectively 90,096 89,453 89,590 Capital in excess of par value 34,899,375 34,825,947 34,835,639 Accumulated (deficit) (31,420,689) (31,670,605) (30,958,493) ------------ ------------ ------------ Total stockholders' equity 3,568,782 3,244,795 3,966,736 ------------ ------------ ------------ $ 13,930,514 $ 14,058,345 $ 15,337,076 ============ ============ ============ # # # 7