Skip to content

CHICAGO–(BUSINESS WIRE)–Oct. 26, 2005–Allscripts (Nasdaq:MDRX),
the leading provider of clinical software, connectivity and
information solutions that physicians use to improve healthcare,
announced results for the three and nine months ended September 30,
2005.

Total revenue for the three months ended September 30, 2005 was
$30.6 million, compared to $25.7 million for the same period last
year. Revenue from software and related services for the three months
ended September 30, 2005 was $16.5 million, compared to $11.0 million
for the same period last year, increasing by 50%.

Gross margin percentage was 43.3% for the third quarter of 2005,
compared to 43.1% during the third quarter of 2004.

Net income for the three months ended September 30, 2005 was $2.9
million, or $0.07 per diluted share, compared to net income of $0.7
million, or $0.02 per diluted share, for the same period last year, a
net income increase of 296% and a new record for the Company.

As of September 30, 2005, the Company had cash and marketable
securities of $136.1 million.

“Electronic health records are the key ingredient for transforming
healthcare in the United States and Allscripts is perfectly positioned
to benefit as physicians embrace clinical software to care for their
patients,” commented Glen Tullman, Chief Executive Officer of
Allscripts. “I am pleased with our third quarter results, and look
forward to the fourth quarter, which traditionally represents the
strongest sales quarter in our industry.”

Total revenue for the nine months ended September 30, 2005 was
$86.4 million, compared to $74.5 million for the same period last
year. Revenue from software and related services for the nine months
ended September 30, 2005 was $46.9 million, compared to $29.8 million
for the same period last year, increasing by 57%.

Total gross margin percentage was 45.5% for the nine months ended
September 30, 2005, compared to 40.7% for the nine months ended
September 30, 2004.

Net income for the nine months ended September 30, 2005 was $6.3
million, or $0.15 per diluted share, compared to net income of $1.7
million, or $0.04 per diluted share, for the same period last year.

Allscripts will conduct a conference call on Wednesday, October
26, 2005 at 4:30 PM eastern time. The conference call can be accessed
by dialing 1-800-374-0526, or via the Internet at www.allscripts.com.
A recording of the conference call will be available for review
through November 9, 2005, at www.allscripts.com or by calling
1-800-642-1687, ID # 1251811.

About Allscripts

Allscripts is the leading provider of clinical software,
connectivity and information solutions that physicians use to improve
healthcare. The Company provides unique solutions that inform,
connect, and transform healthcare. The Clinical Solutions Group’s
award-winning clinical software applications include electronic health
record, e-prescribing and document imaging solutions. Allscripts’
Physicians Interactive Group provides clinical product education and
connectivity solutions for physicians and patients. The Company’s
Medication Services Group provides medication fulfillment services. To
learn more, visit Allscripts on the Web at www.allscripts.com.

This announcement may contain forward-looking statements about
Allscripts Healthcare Solutions that involve risks and uncertainties.
These statements are developed by combining currently available
information with Allscripts beliefs and assumptions. Forward-looking
statements do not guarantee future performance. Because Allscripts
cannot predict all of the risks and uncertainties that may affect it,
or control the ones it does predict, Allscripts’ actual results may be
materially different from the results expressed in its forward-looking
statements. For a more complete discussion of the risks, uncertainties
and assumptions that may affect Allscripts, see the Company’s 2004
Annual Report on Form 10-K, available through the Web site maintained
by the Securities and Exchange Commission at www.sec.gov.

                Allscripts Healthcare Solutions, Inc.
                Condensed Consolidated Balance Sheets
                       (amounts in thousands)


                                          September 30,  December 31,
Assets                                        2005          2004
------                                    ------------- -------------
                                           (Unaudited)
Current assets
  Cash and cash equivalents                    $37,719       $16,972
  Marketable securities                         56,907        22,796
  Accounts receivable, net                      26,765        21,382
  Other receivables                                565           627
  Inventories                                    1,935         2,372
  Prepaid expenses and other current assets      4,889         3,571
                                          ------------- -------------
         Total current assets                  128,780        67,720

  Long-term marketable securities               41,447        88,471
  Software development costs, net                6,423         6,270
  Fixed assets, net                              2,597         2,366
  Intangible assets, net                        23,332        24,546
  Other assets                                   5,307         4,804
                                          ------------- -------------
         Total assets                         $207,886      $194,177
                                          ============= =============


Liabilities and Stockholders' Equity
------------------------------------

Current liabilities
  Accounts payable                              $4,915        $5,981
  Accrued expenses                              11,154        12,218
  Deferred revenue                              15,103        14,607
                                          ------------- -------------
         Total current liabilities              31,172        32,806

Other liabilities                                  359           178
Long-term debt                                  82,500        82,500
                                          ------------- -------------
         Total liabilities                     114,031       115,484


Stockholders' equity                            93,855        78,693
                                          ------------- -------------

         Total liabilities and
          stockholders' equity                $207,886      $194,177
                                          ============= =============



                Allscripts Healthcare Solutions, Inc.
           Condensed Consolidated Statements of Operations
           (amounts in thousands, except per-share amounts)
                             (Unaudited)


                                Three Months Ended  Nine Months Ended
                                   September 30,      September 30,
                                   2005     2004      2005     2004
                                --------- -------- --------- --------
Revenue:
 Prepackaged medications         $11,496  $11,811   $32,820  $35,391
 Software and related
  services                        16,462   10,986    46,917   29,815
 Information services              2,680    2,897     6,630    9,251
                                --------- -------- --------- --------
        Total revenue             30,638   25,694    86,367   74,457

Cost of revenue:
 Prepackaged medications           9,753    9,621    27,173   28,427
 Software and related
  services                         6,114    3,581    16,599   10,704
 Information services              1,511    1,415     3,287    5,014
                                --------- -------- --------- --------
        Total cost of revenue     17,378   14,617    47,059   44,145
                                --------- -------- --------- --------

Gross profit                      13,260   11,077    39,308   30,312

Operating expenses:
 Selling, general and
  administrative expenses         10,025    9,453    31,840   27,316
 Amortization of intangibles         436      437     1,308    1,311
                                --------- -------- --------- --------
        Income from operations     2,799    1,187     6,160    1,685

Interest expense                    (880)    (833)   (2,636)    (833)
Interest income                    1,064      436     2,898      873
Other income (expense), net          (43)     (48)     (115)     (20)
                                --------- -------- --------- --------
Income before income taxes         2,940      742     6,307    1,705

Income taxes                           -        -         -        -
                                --------- -------- ------------------
Net income                        $2,940     $742    $6,307   $1,705
                                ========= ======== ==================

Net income per share - basic       $0.07    $0.02     $0.16    $0.04
                                ========= ======== ========= ========

Net income per share - diluted     $0.07    $0.02     $0.15    $0.04
                                ========= ======== ========= ========

Weighted average shares of
 common stock outstanding
 used in computing basic net
 income per share                 40,895   38,803    39,938   39,146
                                ========= ======== ==================

Weighted average shares of
 common stock outstanding
 used in computing diluted net
 income per share                 44,223   41,164    43,003   41,760
                                ========= ======== ==================

    CONTACT: Allscripts
             Dan Michelson, 312-506-1217
             dan.michelson@allscripts.com
             or
             Bill Davis, 312-506-1211
             bill.davis@allscripts.com

    SOURCE: Allscripts
Scroll To Top