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BASKING RIDGE, NJ, September 18, 2000 - Hooper Holmes, Inc. (AMEX:HH) today commented that third quarter revenue and earnings are expected to be lower than previously anticipated due to continued softness in the insurance industry.
Based on preliminary data, revenues for the quarter ending September 30, 2000 are expected to be approximately $62.0 million compared to the $53.8 million reported in the third quarter last year. Earnings per share are expected to be approximately $0.06 compared to $0.08 in last year's third quarter.
Jim McNamee, Chairman and Chief Executive Officer, commented, "As previously outlined, we had hoped for improved industry trends, but based on continued softness in the life insurance industry and the seasonal weakness traditionally associated with the third quarter, we anticipate revenues and earnings will fall below original expectations. We believe these conditions could persist into the fourth quarter, resulting in earnings flatness for the year, with historical growth trends resuming in 2001."
Mr. McNamee added, "Our efforts to reduce expenses in light of lower than expected revenue trends are beginning to yield results, and we expect to report solid improvement in our cost structure as compared to previous quarters. We are encouraged by the better than expected progress of Portamedic Select, which is aimed at the expanding alternate distribution channels, and the DNA Sciences program, both of which are expected to contribute to our long term growth. Going forward, we intend to pursue additional opportunities to leverage our core competencies and technology infrastructure to drive revenues and enhance profitability."
Hooper Holmes expects to report third quarter results on or about October 25, 2000.
Hooper Holmes, Inc. provides health information services on insurance policy applicants to the life insurance industry. The Company provides these health information services through over 300 locations nationwide.
Certain information contained herein includes information that is forward-looking. The matters referred to in forward-looking statements may be affected by the risks and uncertainties involving the Company's business. These forward-looking statements are qualified in the entirety by cautionary statements contained in the Company's Securities and Exchange Commission filings.
Contacts: Hooper Holmes, Inc.
Fred Lash, Chief Financial Officer
908-766-5000
Morgen-Walke Associates
Investors: Robert P. Jones/Theresa Schillero
Media: Stacey Nield/Dan Budwick
212-850-5600
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