TriZetto Group Inc., a Newport Beach-based provider of billing software for healthcare companies, is predicting a rise in 2005 earnings, thanks to what company officials call “operational improvements in sales processes.”
TriZetto said it expects to earn about $15 million this year on estimated revenue of some $280 million, which could come in lower than what analysts are predicting for 2004.
2004 results are due on Feb. 11. Analysts expect the company to post sales of $295 million and earnings of about $14 million.
TriZetto provides medical billing software and services to various healthcare companies, including health plan operators.
Company officials said lower-profit businesses have been cut and replaced with more profitable ones. In addition, TriZetto said it was reducing costs.
Besides operating changes, TriZetto has moved in recent months to make other changes to its business.
Last month, it bought back 12.1 million of its shares held by IMS Health Inc., a competitor based in Westport, Conn. Analysts had said that the IMS holdings were an overhang on TriZetto’s stock valuation.
As of last week, TriZetto has a market value of more than $400 million.
