Consolidated Statements of Operations

Index Company Profile Financial Highlights Dear Fellow Shareholders Question and Answer with the CEO ASP Solutions HealtheWare HealthWeb Complementary Business Milestones Form 10-K Report of Independent Accountants Balance Sheets Statements of Operations Statements of Comprehensive Loss Statement of Stockholders' Equity (Deficit) Statements of Cash Flows Notes to Consolidated Financial Statements Valuation and Qualifying Accounts Corporate Information

(IN THOUSANDS, EXCEPT PER SHARE DATA) FOR THE YEARS ENDED DECEMBER 31, --------------------------------- 2000 1999 1998 --------- -------- -------- (IN THOUSANDS) Revenue: Recurring revenue........................................ $ 61,811 $19,448 $ 5,300 Non-recurring revenue.................................... 27,245 13,478 6,131 -------- ------- ------- Total revenue.............................................. 89,056 32,926 11,431 -------- ------- ------- Cost of revenue: Recurring revenue(1)..................................... 54,929 17,350 3,978 Non-recurring revenue(2)................................. 20,089 10,037 3,498 -------- ------- ------- Total cost of revenue...................................... 75,018 27,387 7,476 -------- ------- ------- Gross profit............................................... 14,038 5,539 3,955 -------- ------- ------- Operating expenses: Research and development(3).............................. 8,463 2,394 1,084 Selling, general and administrative(4)................... 34,144 9,366 2,887 Amortization of goodwill and acquired intangibles........ 18,622 783 -- Write-off of acquired in-process technology.............. 1,426 1,407 -- -------- ------- ------- Total operating expenses.............................. 62,655 13,950 3,971 -------- ------- ------- Loss from operations....................................... (48,617) (8,411) (16) Interest income............................................ 1,394 527 210 Interest expense........................................... (883) (256) (52) -------- ------- ------- Income (loss) before income taxes.......................... (48,106) (8,140) 142 Provision for (benefit of) income taxes.................... (5,848) (213) 82 -------- ------- ------- Net income (loss)........................................ $(42,258) $(7,927) $ 60 ======== ======= ======= Net income (loss) per share: Basic.................................................... $ (1.80) $ (0.85) $ 0.01 ======== ======= ======= Diluted.................................................. $ (1.80) $ (0.85) $ 0.00 ======== ======= ======= Shares used in computing net income (loss) per share: Basic.................................................... 23,444 9,376 4,937 ======== ======= ======= Diluted.................................................. 23,444 9,376 12,783 ======== ======= ======= (1) Cost of recurring revenue includes $528, $294 and $11 of amortization of deferred stock compensation for the years ended December 31, 2000, 1999, and 1998, respectively. (2) Cost of non-recurring revenue includes $294, $286 and $8 of amortization of deferred stock compensation for the years ended December 31, 2000, 1999, and 1998, respectively. (3) Research and development includes $69, $23 and $1 of amortization of deferred stock compensation for the years ended December 31, 2000, 1999, and 1998, respectively. (4) Selling, general and administrative includes $1,043, $454 and $2 of amortization of deferred stock compensation for the years ended December 31, 2000, 1999, and 1998, respectively. The accompanying notes are an integral part of these consolidated financial statements.