8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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):
August 14, 2007

PROXYMED, INC.

(Exact name of registrant as specified in its charter)

Florida	000-22052	65-0202059
(State or other jurisdiction of	(Commission File No.)	(IRS Employer
incorporation)		Identification No.)

1854 Shackleford Court, Suite 200,
Norcross, Georgia 30093-2924
(Address of principal executive offices)

(770) 806-9918

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.     Results of Operations and Financial Condition.

On August 14, 2007, ProxyMed, Inc. d/b/a MedAvant Healthcare Solutions (“MedAvant”) announced its financial results for its second quarter ended June 30, 2007. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K. Additionally, on August 15, 2007, MedAvant will hold a teleconference call to report its financial and operating results for the quarter ended June 30, 2007.

From time to time, the Company may include in the press release certain non-generally accepted accounting principles (GAAP) financial measures, including earnings before interest, tax, depreciation and amortization (EBITDA). As required by Regulation G, the press release would then contain a reconciliation of net loss to EBITDA, as well as a discussion of management’s uses of, and rationale for presenting, the non-GAAP financial measures.

FORWARD LOOKING STATEMENTS — Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. In some cases, forward-looking statements can be identified by terminology such as “may,” “should,” “potential,” “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions. Actual results could differ materially from projected results because of factors such as: the soundness of MedAvant’s business strategies relative to the perceived market opportunities; MedAvant’s ability to successfully develop, market, sell, cross-sell, install and upgrade its clinical and financial transaction services and applications to current and new physicians, payers, medical laboratories and pharmacies; the ability to compete effectively on price and support services; MedAvant’s ability and that of its business associates to perform satisfactorily under the terms of its contractual obligations, and to comply with various government rules regarding healthcare and patient privacy; entry into markets with vigorous competition, market acceptance of existing products and services, changes in licensing programs, product price discounts, delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels; the availability of competitive products or services; the continued ability to protect our intellectual property rights, implementation of operating cost structures that align with revenue growth; uninsured losses; adverse results in legal disputes resulting in liabilities; unanticipated tax liabilities; the effects of a natural disaster or other catastrophic event beyond our control that results in the destruction or disruption of any of our critical business or information technology systems. Any of these factors could cause the actual results to differ materially from the guidance given at this time. MedAvant refers you to the cautionary statements and risk factors set forth in the documents MedAvant files from time to time with the Securities and Exchange Commission, particularly MedAvant’s form 10K for the year ended December 31, 2006.

MedAvant does not assume any obligation to update information contained in this document. Although the release attached hereto as Exhibit 99.1 may remain available on MedAvant’s website or elsewhere, its continued availability does not indicate that MedAvant is reaffirming or confirming any of the information contained therein.

Item 9.01     Financial Statements and Exhibit.

(d) Exhibits

Exhibit No.		Description
	99.1	Press release of MedAvant dated August 14, 2007, reporting financial results for the second quarter ended June 30, 2007.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	ProxyMed, Inc.
Date: August 14, 2007	/s/ John G. Lettko
	John G. Lettko
	President and Chief Executive Officer

EX-99.1

Exhibit 99.1

Investor Relations Contact:	Media Contacts:
John G. Nesbett	Teresa Stubbs
Institutional Marketing Services, Inc.	MedAvant Healthcare Solutions
203-972-9200	812-206-4332
jnesbett@institutionalms.com	tstubbs@medavanthealth.com

MEDAVANT ANNOUNCES SECOND QUARTER 2007 EARNINGS RESULTS;

HIRES INVESTMENT BANK TO ASSIST WITH EXPLORATION OF STRATEGIC ALTERNATIVES

 

ATLANTA, GA.—(PRIME NEWSWIRE)—August 14, 2007—MedAvant Healthcare Solutions (MedAvant) (NASDAQ: PILL), a leader in healthcare technology and transaction services, today announced results for the second quarter ended June 30, 2007.

Financial Highlights

Second Quarter of 2007 compared with First Quarter 2007

• Net revenue for the second quarter ended June 30, 2007, was $14.3 million compared with net revenue of $15 million for the first quarter ended March 31, 2007.

• Operating loss for the second quarter was $3.2 million compared with an operating loss for the first quarter of $21.2 million (which included a $19.4 million impairment charge).

• Net loss for the second quarter was $4.1 million compared with a net loss of $22.2 million for the first quarter (which included a $19.4 million impairment charge).

Second Quarter of 2007 compared with Second Quarter 2006

• Net revenue for the second quarter ended June 30, 2007, was $14.3 million, compared with net revenue of $15.6 million for the second quarter ended June 30, 2006.

• Operating loss for the second quarter was $3.2 million compared with an operating loss for the prior-year period of $1 million.

• Net loss for the second quarter of 2007 was $4.1 million, compared with a net loss of $1.8 million for the prior-year period.

Commenting on the second quarter and year to date results, John Lettko, MedAvant President and CEO, said, “While we are continuing to add to our product mix with services such as our recently announced Front-End Gateway Solutions for Payers, revenues in our Transaction Services segment decreased 11 percent versus the same quarter last year. Lost customer volumes due to pricing pressures, changes in customer mix, and service offerings and increased direct customer connectivity to payers were the primary factors in the $1.5 million revenue decline in our Transaction Services segment. This revenue decline was partly offset by an approximate $200,000 increase in our Laboratory Communications Solutions revenues.”

“Our selling, general and administrative expenses increased by $1.6 million in the second quarter of 2007 compared with the second quarter of 2006. This increase is primarily due to a write-off of approximately $1.7 million of accounts receivable from certain Cost Containment customers that management determined were uncollectible during the period ended June 30, 2007. In addition, we reduced our headcount during May 2007; however, the impact of those reductions will not take effect until the third quarter as we incurred an additional $200,000 of severance expense.”

Mr. Lettko added, “We continue to evaluate strategic opportunities to improve cash flow. For example, during the second quarter we sold our pharmacy transaction processing business. In addition, we have retained Cain Brothers & Company, LLC to help us identify strategic alternatives related to the Company and its businesses. Cain Brothers is an investment banking and financial advisory firm that focuses exclusively on healthcare services and medical technology.”

MedAvant will host a conference call to discuss the first quarter results on August 15, 2007, at 10:00 a.m. Eastern Time. The number to call for this interactive teleconference is 866-356-4281 and the passcode is 94855937. A replay of the conference call will be available through August 22, 2007, by dialing 888-286-8010 and entering the confirmation number 19057496.

The live broadcast of MedAvant’s quarterly conference call will be available online at www.medavanthealth.com and www.earnings.com on August 15, 2007, beginning at 10:00 a.m. Eastern Time. The online replay will follow shortly after the call and continue for 30 days.

Summary of Financial Results

Statement of Operations (Unaudited)

	Three Months Ended June 30,
(in $000's)	2007			2006
Net revenues:
Transaction fees, cost containment services and license fees	$	12,331		$	13,790
Communication devices and other tangible goods		1,955			1,767
		14,286			15,557
Costs and expenses:
Cost of transaction fees, cost containment services and license fees, excluding depreciation and amortization		3,153			3,433
Cost of laboratory communication devices and other tangible goods, excluding depreciation and amortization		1,004			1,084
Selling, general and administrative expenses		11,768			10,226
Depreciation and amortization		1,499			1,857
Write-off of impaired assets		—			—
Loss on disposal of assets		13			—
		17,437			16,600
Operating loss		(3,151	)		(1,043	)
Interest expense, net		992			796
Loss before income taxes		(4,143	)		(1,839	)
Provision for income taxes		—			—
Net loss	$	(4,143	)	$	(1,839	)
Basic and diluted weighted average shares outstanding		13,266,831			13,204,842

Summary Balance Sheet (Unaudited)

	June 30,		December 31,
(in $000's)	2007		2006
Current assets		16,248		17,872
Long-term assets		32,642		54,368
Total assets	$	48,890	$	72,240
Current liabilities		28,537		25,508
Long-term liabilities		17,481		19,308
Stockholders’ equity		2,872		27,424
Total liabilities and stockholders’ equity	$	48,890	$	72,240

Summary Statement of Cash Flows (Unaudited)

	Six Months Ended June 30,
(in $000's)	2007			2006
Net cash used in operating activities	$	(1,687	)	$	(1,810	)
Net cash used in investing activities		(393	)		(1,615	)
Net cash provided by (used in) financing activities		1,917			(1,500	)
Net decrease in cash and cash equivalents		(163	)		(4,925	)
Cash and cash equivalents at beginning of period		682			5,546
Cash and cash equivalents at end of period	$	519		$	621

About MedAvant Healthcare Solutions

MedAvant provides information technology used to process transactions within the healthcare industry. MedAvant offers electronic claims processing to healthcare providers, a Preferred Provider Organization called the National Preferred Provider Network (NPPN^TM) and remote reporting solutions for medical laboratories. To facilitate these services, MedAvant operates Phoenix^SM, a highly scalable platform which supports real-time connections between healthcare clients. For more information, visit http://www.medavanthealth.com. MedAvant is a trade name of ProxyMed, Inc.

Forward Looking Statement

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. In some cases, forward-looking statements can be identified by terminology such as “may,” “should,” “potential,” “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions. Actual results could differ materially from projected results because of factors such as: the soundness of our business strategies relative to the perceived market opportunities; MedAvant’s ability to successfully develop, market, sell, cross-sell, install and upgrade its clinical and financial transaction services and applications to current and new physicians, payers, medical laboratories and pharmacies; the ability to compete effectively on price and support services; MedAvant’s ability and that of its business associates to perform satisfactorily under the terms of its contractual obligations, and to comply with various government rules regarding healthcare and patient privacy; entry into markets with vigorous competition, market acceptance of existing products and services, changes in licensing programs, product price discounts, delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels; the availability of competitive products or services; the continued ability to protect the company’s intellectual property rights, implementation of operating cost structures that align with revenue growth; uninsured losses; adverse results in legal disputes resulting in liabilities; unanticipated tax liabilities; the effects of a natural disaster or other catastrophic event beyond our control that results in the destruction or disruption of any of our critical business or information technology systems. Any of these factors could cause the actual results to differ materially from the guidance given at this time. For further cautions about the risks of investing in MedAvant, we refer you to the documents MedAvant files from time to time with the Securities and Exchange Commission, including, without limitation, its most recently filed Annual Report on Form 10-K. MedAvant does not assume, and expressly disclaims, any obligation to update information contained in this document. Although this release may remain available on our website or elsewhere, its continued availability does not indicate that we are reaffirming or confirming any of the information contained herein.

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