Advertisement
(Logo: http://www.newscom.com/cgi-bin/prnh/20081013/AQM041LOGO)
Total revenue for the three months ended September 30, 2008 is expected tobe approximately $85.7 million, compared to $73.4 million for the same periodlast year. Revenue from software and related services for the three monthsended September 30, 2008 is expected to be approximately $71.8 million,compared to $59.0 million for the same period last year, increasing by 22%.Both total revenue and revenue from software and related services are expectedto be new records for the Company.
Advertisement
Gross margin percentage is estimated to be 48.8% for the third quarter of2008, compared to 50.1% during the third quarter of 2007.
Net income for the three months ended September 30, 2008 is expected to beapproximately $4.0 million, or $0.07 per diluted share, compared to net incomeof $4.1 million, or $0.07 per diluted share, for the same period last year.Net income for the three months ended September 30, 2008 and 2007 reflectsdeal-related amortization of $2.1 million and $1.7 million, respectively, or$0.04 and $0.03 per diluted share for both periods, net of tax, respectively,and total stock-based compensation of $1.0 million and $0.9 million,respectively, or $0.02 and $0.01 per diluted share for both reported periods,net of tax, respectively. Net income for the three months ended September 30,2008 also includes transaction-related expenses of $3.3 million, or $0.06 perdiluted share, net of tax, and a gain on the sale of the Company's PhysiciansInteractive business of $2.0 million, or $0.03 per diluted share, net of tax.
Non-GAAP adjusted earnings for the three months ended September 30, 2008are expected to be approximately $8.4 million, or $0.15 per diluted share,compared to non-GAAP adjusted earnings of $6.7 million, or $0.11 per dilutedshare for the same period last year, increasing by 26%. Please see "Non-GAAPFinancial Measures" below for a discussion of non-GAAP adjusted earnings andearnings per share.
As of September 30, 2008, AHS had cash and marketable securities of$79.5 million.
"We made solid progress in the third quarter with record revenue andcontinued strong investment in new products and better processes," said GlenTullman, Chief Executive Officer of Allscripts. "We're now focused on drivingresults for our newly combined company and I'm pleased that we are alreadymoving forward with a broader suite of products and solutions, and a fullytrained sales force. We are committed to helping our clients use innovationtechnology to access the information they need to improve the quality of careand better manage costs."
Total revenue for the nine months ended September 30, 2008 is expected tobe approximately $239.3 million, compared to $208.5 million for the sameperiod last year. Revenue from software and related services for the ninemonths ended September 30, 2008 is expected to be approximately$198.6 million, compared to $164.9 million for the same period last year,increasing by 20%.
Gross margin percentage is estimated to be 49.7% for the first nine monthsof 2008, compared to 50.1% during the same period of 2007.
Net income for the nine months ended September 30, 2008 is expected to beapproximately $6.5 million, or $0.11 per diluted share, compared to net incomeof $14.6 million, or $0.25 per diluted share, for the same period last year.Expected net income for the nine months ended September 30, 2008 and reportednet income for the nine months ended September 30, 2007 reflects deal-relatedamortization of $6.3 million, or $0.11 per diluted share, net of tax, and$4.7 million, or $0.07 per diluted share, net of tax, respectively, and totalstock-based compensation of $3.2 million or $0.06 per diluted share, net oftax, and $1.7 million, or $0.03 per diluted share, net of tax, respectively.Expected net income for the nine months ended September 30, 2008 also includestransaction-related expenses of $6.7 million, or $0.12 per diluted share, netof tax, and a gain on the sale of the Company's Physicians Interactivebusiness, of $2.0 million, or $0.03 per diluted share, net of tax.
Non-GAAP adjusted earnings for the nine months ended September 30, 2008are expected to be $20.7 million, or $0.36 per diluted share, compared tonon-GAAP adjusted earnings of $21.0 million, or $0.35 per diluted share forthe same period last year.
Final AHS results for the three and nine months ended September 30, 2008will be completed and filed with the Securities and Exchange Commission on orbefore November 10, 2008.
Webcast and Dial-in Facility
Allscripts will host an investor presentation in London on Thursday,October 23, 2008 at 7:30 a.m. Eastern Daylight Time to cover preliminary AHSthird quarter results as well as provide outlook for Allscripts for the fiscalyear ending May 31, 2009. The presentation will be available via live webcastand can be accessed by logging onto http://www.allscripts.com. It isrecommended that participants log onto the website approximately 15 minutesprior to the start of the webcast to download and install any necessarysoftware. The audio portion of the webcast also can be accessed by dialing800-374-1376 and requesting the Allscripts Investor Presentation.International callers can access the audio portion of the webcast by dialing706-679-4010 and requesting the Allscripts Investor Presentation.Additionally, callers in the United Kingdom can access the audio portion ofthe webcast by dialing 0-800-028-8438 and requesting the Allscripts InvestorPresentation. A Microsoft Windows Media Player web replay will be availablethree hours after the conclusion of the call for a period of two weeks athttp://www.allscripts.com or by calling 800-642-1687 -- or 706-645-9291 forinternational callers -- ID # 70079059.
Allscripts will host a second investor presentation on October 27th at12:30 p.m., Eastern Daylight Time in New York to cover preliminary AHS thirdquarter results as well as provide outlook for Allscripts for the fiscal yearending May 31, 2009. The presentation will be available via live webcast andcan be accessed by logging onto http://www.allscripts.com. It is recommendedthat participants log onto the website approximately 15 minutes prior to thestart of the webcast to download and install any necessary software. Theaudio portion of the webcast also can be accessed by dialing 800-374-1376 andrequesting the Allscripts Investor Presentation. International callers canaccess the audio portion of the webcast by dialing 706-679-4010 and requestingthe Allscripts Investor Presentation. A Microsoft Windows Media Player webreplay will be available three hours after the conclusion of the call for aperiod of two weeks at http://www.allscripts.com or by calling 800-642-1687 --or 706-645-9291 for international callers -- ID # 70142383.
(Minimum requirements to listen to the broadcasts are: Microsoft WindowsMedia Player software, downloadable free fromhttp://windowsmedia.com/download/download.asp, an Internet connection, andspeakers or earphones).
Explanation of Non-GAAP Financial Measures
Allscripts reports its financial results in accordance with generallyaccepted accounting principles, or GAAP. To supplement this information,Allscripts presents in this press release non-GAAP net income (and related pershare amounts), which is a non-GAAP financial measure under Section 101 ofRegulation G under the Securities Exchange Act of 1934, as amended. Non-GAAPnet income consists of GAAP net income, excluding acquisition-relatedamortization, stock-based compensation expense under SFAS No. 123R, andtransaction-related expenses, in each case net of any related tax benefit.
Management also believes that non-GAAP net income (and related per shareamounts) provides useful supplemental information to management and investorsregarding the underlying performance of the Company's business operations andfacilitates comparisons to its historical operating results. Management alsouses this information internally for forecasting and budgeting as it believesthat the measure is indicative of the Company's core operating results. Notehowever, that non-GAAP net income is a performance measure only, and it doesnot provide any measure of the Company's cash flow or liquidity. Non-GAAPfinancial measures are not in accordance with, or an alternative for, measuresof financial performance prepared in accordance with GAAP and may be differentfrom non-GAAP measures used by other companies. Non-GAAP measures havelimitations in that they do not reflect all of the amounts associated withAllscripts results of operations as determined in accordance with GAAP.Investors and potential investors are encouraged to review the reconciliationof non-GAAP financial measures with GAAP financial measures contained withinthe attached condensed consolidated financial statements.
About Allscripts
Allscripts (Nasdaq: MDRX) uses innovation technology to bring health tohealthcare. More than 150,000 physicians, 700 hospitals and nearly 7,000 post-acute and homecare organizations utilize Allscripts to improve the health oftheir patients and their bottom line. The Company's award-winning solutionsinclude electronic health records, electronic prescribing, revenue cyclemanagement, practice management, document management, medication services,hospital care management, emergency department information systems andhomecare automation. Allscripts is the brand name of Allscripts-MisysHealthcare Solutions, Inc. To learn more, visit http://www.allscripts.com.
This news release may contain forward-looking statements within themeaning of the federal securities laws. Statements regarding future events,developments, the Company's future performance, as well as management'sexpectations, beliefs, intentions, plans, estimates or projections relating tothe future are forward-looking statements within the meaning of these laws.These forward-looking statements are subject to a number of risks anduncertainties, some of which are outlined below. As a result, actual resultsmay vary materially from those anticipated by the forward-looking statements.Among the important factors that could cause actual results to differmaterially from those indicated by such forward-looking statements are: thevolume and timing of systems sales and installations; length of sales cyclesand the installation process; the possibility that products will not achieveor sustain market acceptance; the timing, cost and success or failure of newproduct and service introductions, development and product upgrade releases;competitive pressures including product offerings, pricing and promotionalactivities; our ability to establish and maintain strategic relationships;undetected errors or similar problems in our software products; compliancewith existing laws, regulations and industry initiatives and future changes inlaws or regulations in the healthcare industry; possible regulation of theCompany's software by the U.S. Food and Drug Administration; the possibilityof product-related liabilities; our ability to attract and retain qualifiedpersonnel; our ability to identify and complete acquisitions, manage ourgrowth and integrate acquisitions; the ability to recognize the benefits ofthe merger with Misys Healthcare Systems, LLC ("MHS"); the integration of MHSwith the Company and the possible disruption of current plans and operationsas a result thereof; maintaining our intellectual property rights andlitigation involving intellectual property rights; risks related to third-party suppliers; our ability to obtain, use or successfully integrate third-party licensed technology; breach of our security by third parties; and therisk factors detailed from time to time in our reports filed with theSecurities and Exchange Commission, including our 2007 Annual Report on Form10-K available through the Web site maintained by the Securities and ExchangeCommission at http://www.sec.gov. The Company undertakes no obligation toupdate publicly any forward-looking statement, whether as a result of newinformation, future events or otherwise.Allscripts Healthcare Solutions, Inc. Selected Operating Results (amounts in millions, except per-share amounts) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 Revenue: Software and related services $71.8 $59.0 $198.6 $164.9 Prepackaged medications 10.0 10.9 29.1 32.1 Information services 3.9 3.5 11.6 11.5 Total revenue 85.7 73.4 239.3 208.5 Gross margin $41.8 $36.8 $119.0 $104.5 Gross margin % 48.8% 50.1% 49.7% 50.1% Operating income 8.1 6.9 14.2 21.7 Net income $4.0 $4.1 $6.5 $14.6 Earnings per share - diluted $0.07 $0.07 $0.11 $0.25 Allscripts Healthcare Solutions, Inc. Reconciliation of Non-GAAP Adjusted Earnings and Non-GAAP Adjusted Earnings Per Share (amounts in millions, except per-share amounts) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 Net Income $4.0 $4.1 $6.5 $14.6 Stock-based compensation expense (tax effected at 39% for 2008 and 40% for 2007) 1.0 0.9 3.2 1.7 Acquisition-related amortization (tax effected at 39% for 2008 and 40% for 2007) 2.1 1.7 6.3 4.7 Transaction-related expenses (tax effected at 39% for 2008) 3.3 - 6.7 - Gain on sale of Physicians Interactive business (tax effected at 39% for 2008) (2.0) - (2.0) - Non-GAAP Adjusted Earnings $8.4 $6.7 $20.7 $21.0 Weighted average shares of common stock outstanding used in computing diluted non-GAAP adjusted earnings per share 58.2 65.2 57.8 64.5 Non-GAAP Adjusted Earnings Per Share - diluted $0.15 $0.11 $0.36 $0.35
SOURCE Allscripts
