HAXS

[la-onda]

Looks good IMO, volume has to increase  

FYI:
1)
Business profile:
At Healthaxis®, we combine technology and service to deliver value.
Healthaxis®, a leading solutions provider for healthcare payers, offers a wide array of products and services to help payers drive down costs, improve operational efficiencies and deliver value to their customers. For more than 40 years, we've helped TPAs, insurance companies, MCOs and self-administered employers relentlessly attack inefficiencies and reduce costs
Healthaxis® has the domain expertise, system-neutral technologies and proven methodologies you demand and deserve. Our ability to integrate and automate critical administrative processes-claims receipt, plan administration, adjudication, fulfillment and self-service solutions-enables you to focus on your core competencies while providing your customers with a higher level of service. With Healthaxis®, third party administrators reduce administrative expenses, improve operational efficiencies and pass savings on to their customers. Insurance companies and MCOs maximize margins, reduce medical claims processing costs, improve operational efficiencies and mitigate risk. Self-administered health plans pass savings on to employees and provide a higher quality of service while reducing administration costs.
Healthaxis® is not your typical Business Process Outsourcing (BPO) firm. We're a publicly traded, stable, American healthcare solutions provider with superior expertise, unsurpassed customer service and proven technologies. We're flexible and client-focused. We tailor our processes and technology to work seamlessly with your existing infrastructure and systems, thus creating value.
For decades we've staged a relentless attack on inefficiencies and cost in the healthcare industry, helping payers cost-effectively improve labor-intensive and complex processes. Discover Healthaxis®, the payer solution.
2)
First profitable Quarter:
Healthaxis Announces Third Quarter 2006 Operating Results
Thursday October 26, 5:41 pm ET
Revenue Increase Results in Operating Profit, Positive Cash Flow

IRVING, Texas--(BUSINESS WIRE)--Healthaxis Inc. (NASDAQ: HAXS - News), an innovative provider of technology-enhanced, integrated business process solutions and services, including claims and benefit administration applications, web-enabled software solutions and outsourced claims related services for health benefit administrators and health insurance claims processors, reported financial results today for the three- and nine-month periods ending September 30, 2006.

Third Quarter 2006 Financial Highlights

* 2006 third quarter revenues were $4.4 million, a 13% increase compared to the third quarter of 2005. Revenues were approximately 6% higher than in the second quarter of 2006.

* Revenue from transaction fees, license fees, BPO services, and professional services all showed improvement over the prior year's third quarter. The improvement in transaction fees, license fees, and BPO services was primarily the result of new customer implementations which have added a significant number of participant lives to our systems and solutions. Professional services revenue increased from a higher number of projects with existing customers. Additionally, a significant portion of the company's billable professional services relates to customer implementations, for which revenue is deferred to future periods. Deferred revenues increased approximately $259,000 during the third quarter of 2006.

* The Company achieved an operating profit of $5,000 in the third quarter of 2006 compared to an operating loss of $489,000 in the same quarter of 2005. The improved operating results for the third quarter of 2006 are primarily derived from higher revenue combined with lower amortization and depreciation expenses and higher capitalized startup costs for new customer implementations. The cost improvements were partially offset by higher variable costs associated with higher transaction volumes from transaction fee revenue, increased personnel costs from the expansion of the company's operations to support the implementation of new business, and non-cash equity compensation of approximately $21,000.

* The Company reported 2006 third quarter net income of $317,000, or $0.04 per share, which includes the reversal of a $324,000 contingent tax liability for which the statute of limitations expired. The Company reported a net loss in the third quarter of 2005 of $511,000 ($0.09 per share).

* The Company generated positive cash flow from operations of $433,000 in the third quarter of 2006 and total cash reserves increased by a similar amount.

Year to Date 2006 Financial Highlights

* Revenues for the first nine months of 2006 were $12.4 million, an increase from the $12.0 million reported for the same period of 2005. Revenues from transaction fees, license fees, and BPO services each increased in 2006 compared to last year. Year to date, professional services revenues remain lower than for the same period of 2005 due to the previously mentioned requirement to defer professional services revenues tied to client implementations. Deferred revenues have increased by approximately $906,000 since December 31, 2005.

* The net loss attributable to common shareholders for the nine months ended September 30, 2006 was $411,000 ($0.06 per share) compared to $1.8 million ($0.37 per share) for the same period of 2005. The improved financial results stem from the factors previously described plus lower corporate facility costs resulting from the relocation of the Company's headquarters in June 2005. These improvements were partially offset by increased costs for sales and marketing and non-cash equity compensation of approximately $62,000. For comparison purposes, it should be noted that results for the first nine months of 2005 benefited from the elimination of a contingent tax liability totaling $979,000 partially offset by a lease abandonment charge of $523,000 related to moving the company's headquarters.

* Increases in the number of shares outstanding in the three and nine-month periods of 2006 are the result of the conversion of approximately 2.1 million shares of preferred stock into common shares on a one-for-one basis. If all preferred shares were converted, the total common shares outstanding would be 8,890,013.

Company Highlights

* In July 2006, the company announced the expansion of its Ultimate TPA(TM) Solution. The Ultimate TPA Solution is a unique combination of technology and BPO services that help TPAs gain operational efficiency and reduce costs. This packaged suite of technology and services is offered as a turnkey solution. The Ultimate TPA benefits smaller to midsize organizations the most, but can bring value to operations of any size. The Ultimate TPA enables growth-minded organizations to pursue their expansion objectives with both minimal capital and infrastructure investment, and affordable and predictable ongoing costs. In August 2006, we announced our first Ultimate TPA customer and earlier this month we presented the solution at the 26th Annual National Educational Conference & Expo of the Self-Insurance Institute of America (SIIA).

* As previously reported, in July 2006, we renewed and extended the debt due to HealthMarkets (formerly known as UICI) on favorable terms. In August, we obtained a $5 million working capital line of credit and a $750,000 equipment line of credit with Silicon Valley Bank in order to provide additional growth capital.

Review and Outlook

Commenting on the Company's third quarter results, John M. Carradine, the Company's President and Chief Executive Officer said, "This was a satisfying quarter because our revenues showed three quarters of sequential growth, two quarters of quarter-over-quarter improvement and we earned an operating profit. Additionally, our cash balances increased driven by positive cash flow from operations. Our sales pipeline is promising and we are pleased with the response to the Ultimate TPA solution. Our marketing efforts for the last year have substantially improved the company's marketplace recognition, and the result is that people are taking notice of what Healthaxis can do for them. While the momentum is gaining, we are not yet growing at an acceptable pace. We expect that fourth quarter revenues will again show growth from last year, but may be flat with the third quarter of 2006 or even slightly lower. This has to do with both seasonal influences and the fact that our third quarter professional services revenues were somewhat higher because of both the quantity and size of projects that we completed. We believe that 2006 revenue will certainly be greater than 2005, and that our operating results in total will be better even as we further accelerate our sales and marketing efforts and spending. We need to build on this progress now and get things moving at a faster pace."

3)
Insider has bought some shares:
http://www.secform4.com/insider-trading/transactions.php?cik=haxs
4)
Charts (daily and weekly):

[poorman1]

Looks like volume is picking up quite a bit.  This was listed on IBD's Top Stocks under $10 filter yesterday.  Today it got a pop.  Has lot's of upside potential if volume stays up.

Good Luck,
poorman1