ProxyMed sells assets of unit to unit president Hardy

<p>ProxyMed Inc. agreed to sell the assets of its Key Electronics unit to A. Thomas Hardy, in a move to focus on its growing healthcare-related businesses.</p><p>Key Electronics is the contract manufacturing business of ProxyMed's Lab Services division.</p><p>In a news release Monday, ProxyMed, which provides physician healthcare transaction processing services, said Hardy served as president of Key Communications Service Inc., a unit of the company which includes both the lab communications device and contract manufacturing businesses. The unit was acquired by ProxyMed on December 31, 1998.</p><p>The company said Hardy was a co-owner of Key Communications prior to that purchase.</p><p>ProxyMed said Hardy will acquire for cash all of the net assets of Key Electronics, estimated at between $4 and $5 million. The company said it expects to reinvest proceeds from the sale in its healthcare-related businesses. ProxyMed said there will be no significant charge to earnings as a result of the deal.</p><p>ProxyMed expects revenue for fiscal 2004 to be $100 million to $107 million on earnings per share of 20 cents to 30 cents.</p><p>ProxyMed said it will report updated guidance for 2004 to reflect this transaction when it reports second quarter earnings.</p><p>The company also said ProxyMed's Lab Services Division will continue to be led by Eric Arnson, vice president and division general manager, and will retain all intellectual property and abilities to serve its clinical lab customers.</p><p>The company said ProxyMed Lab Services is expected to remain in the same facility with Key Electronics, as Key Electronics will continue to supply components for ProxyMed's laboratory communication devices.</p><p>Key Electronics has provided circuit board assembly services for ProxyMed's Lab Services Division in New Albany, Ind., since 1996.</p><p>___</p><p>On the Net:</p><p>HASH(0x28665b0)</p>