Consolidated Statements of Cash Flows

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) FOR THE YEARS ENDED DECEMBER 31, -------------------------------- 2000 1999 1998 -------- ------- ------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss)......................................... $(42,258) $(7,927) $ 60 Adjustments to reconcile net income (loss) to net Cash provided by (used in) operating activities: Provision for doubtful accounts......................... 1,357 505 203 Common stock issued for services rendered............... 99 53 -- Amortization of deferred stock compensation............. 1,934 1,057 22 Amortization of deferred stock warrants................. 82 -- -- Write-off of acquired in-process technology............. 1,426 1,407 -- Forgiveness of notes receivable......................... 29 32 -- Deferred taxes.......................................... (5,636) (187) (83) Loss on disposal of property and equipment.............. 234 -- 187 Depreciation and amortization of property and equipment............................................. 5,262 1,633 161 Amortization of intangibles............................. 18,622 783 -- Changes in assets and liabilities (net of acquisitions): Restricted cash......................................... (1,500) -- -- Accounts receivable..................................... (1,639) (3,080) (2,127) Prepaid expenses and other current assets............... (1,339) (1,271) (75) Income tax receivable................................... (9) (34) (406) Notes receivable........................................ 357 -- -- Accounts payable........................................ 3,700 1,364 32 Accrued liabilities..................................... 3,531 5,190 976 Deferred revenue........................................ 3,931 241 (248) Other................................................... (739) (110) (16) -------- ------- ------- Net cash used in operating activities................. (12,556) (344) (1,314) -------- ------- ------- CASH FLOWS FROM INVESTING ACTIVITIES: Sale of short-term and long-term investments, net......... 4,168 (7,187) -- Purchase of property and equipment and software licenses................................................ (7,328) (3,208) (750) Purchase of MedPartners' assets........................... -- (2,630) -- Net cash acquired in (paid for) acquisitions.............. 27,392 (7,338) -- Payment of acquisition-related costs...................... (7,265) (2,657) -- Other..................................................... (2,206) -- -- -------- ------- ------- Net cash provided by (used in) investing activities... 14,761 (23,020) (750) -------- ------- ------- CASH FLOW FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock, net............... -- 35,996 9 Proceeds from issuance of mandatorily redeemable convertible preferred stock, net........................ -- 4,483 6,449 Repurchases of common stock............................... -- -- (720) Proceeds from issuance of notes payable................... -- -- 56 Proceeds from revolving line of credit, net............... 11,438 -- -- Payments on notes payable................................. (9,689) (1,275) (32) Proceeds from term note................................... 4,000 -- -- Payments on term note..................................... (4,000) (265) -- Proceeds from equipment line of credit.................... 1,855 -- -- Payments on equipment line of credit...................... (565) -- -- Payments on capital leases................................ (1,382) (448) (15) Issuance of notes receivable.............................. -- -- (800) Repayment of notes receivable............................. -- 30 25 Employee exercise of stock options........................ 316 11 -- Employee purchase of common stock......................... 830 -- -- -------- ------- ------- Net cash provided by financing activities............. 2,803 38,532 4,972 -------- ------- ------- Net increase in cash and cash equivalents................. 5,008 15,168 2,908 Effect of exchange rate changes on cash and cash equivalents............................................. 8 -- -- Cash and cash equivalents at beginning of year............ 18,849 3,681 773 -------- ------- ------- Cash and cash equivalents at end of year.................. $ 23,865 $18,849 $ 3,681 ======== ======= ======= The accompanying notes are an integral part of these consolidated financial statements.