Friday, November 7, 2008

Online health site Athenahealth sees revenue, profit climb

Athenahealth Inc. yesterday posted $35.4 million in third-quarter sales, a 35 percent gain over the same period in 2007.

The Watertown maker of web-based software for physician practices announced its third-quarter results after the markets closed Thursday. Athenahealth’s net income for the third quarter was $3.7 million, compared to $500,000 in the same period last year, according to the company. CFO Carl Byers cited continued margin growth as the company has increased investments and grown.

The results were discussed in a conference call this morning, but the company barred press from dialing into the call. An Athenahealth spokesman could not be reached for comment.

In September, Athenahealth bought the physician services website MedicalMessaging.net from Crest Line Technologies LLC for $7.7 million in cash and future milestone payments. In February, Athenahealth purchased a former MBNA Corp. facility in Belfast, Maine, for $6.1 million. At the time, the company said the Maine facility would employ an additional 100 workers within about a year of the final purchase.

And last year, Athenahealth (Nasdaq: ATHN) raised $81 million in an initial public offering, one of the most successful IPOs of 2007. Investors included Westport, Connecticut-based Oak Investment Partners and California-based GGV Capital, formerly Granite Global Ventures. Athenahealth reported a 2007 net loss of $3.5 million, on revenue of $100.7 million.