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CHICAGO, Oct. 25 /PRNewswire/ — Allscripts Healthcare Solutions, Inc.
(Nasdaq: MDRX), the leading provider of point-of-care decision support tools
for physicians, announced today its results for the three and nine month
periods ended September 30, 2001.

Total revenue for the three months ended September 30, 2001 was
$16.4 million. Software and related service revenue for the three months
ended September 30, 2001 increased by 30% from $3.7 million in 2000 to
$4.8 million in 2001. Prepackaged medication revenue increased by 5% from
$11.1 million in 2000 to $11.6 million in the third quarter of 2001.

The results of operations include a charge of $8.6 million related to a
restructuring plan announced in July and a non-cash asset impairment charge of
$355.0 million related to acquired intangible assets and related goodwill.

Pro forma net loss, which excludes the restructuring and asset impairment
charges described above, as well as amortization of intangibles, net of tax
effect, for the third quarter of 2001 was $11.8 million, or $0.31 per share
compared with a pro forma net loss of $5.6 million, or $0.19 per share in the
same period last year. Net loss for the third quarter was $351.9 million, or
$9.26 per share, compared with a loss of $15.2 million, or $0.52 per share in
the same period last year.

“The market for mobile, modular clinical applications that can be quickly
and cost-effectively deployed is growing rapidly. The third quarter, while
challenging, demonstrated that our products continue to gain traction,”
commented Glen Tullman, Chairman and Chief Executive Officer. “During the
quarter, we signed a number of large contracts for our TouchWorks(TM) clinical
suite, including a multi-million dollar agreement with the University of
Minnesota Physicians Group. Additionally, our Physicians Interactive(TM) unit
signed contracts with a number of the largest pharmaceutical companies in the
world, including an agreement, which we are announcing today, where we will
deliver certain e-Detailing(TM) physician education services for Novartis.”

“Our financial position remains very strong with no debt and over
$83 million in cash and marketable securities,” Tullman continued. “The
restructuring we announced, which will save in excess of $15 million annually
in expenses, paired with the revenue growth we anticipate, positions us to
generate cash from operations by the fourth quarter of 2002.”

For the nine months ended September 30, 2001 total revenue was
$52.1 million, up 42% from the comparable period in 2000. Software and
related service revenue for the nine months ended September 30, 2001 increased
by 97% from $7.7 million in 2000 to $15.2 million in 2001. Prepackaged
medication revenue increased by 28% from $28.9 million in the first nine
months of 2000 to $36.9 million in the same period in 2001.

Pro forma net loss was $31.6 million, or $0.84 per share for the nine
months ended September 30, 2001 compared with a pro forma net loss of
$12.7 million, or $0.46 per share in the same period last year. Net loss for
the nine months ended September 30, 2001 was $410.4 million, or $10.86 per
share, compared with a net loss of $42.1 million, or $1.54 per share, for the
same period in 2000.

Allscripts will conduct a conference call on Thursday, October 25, 2001 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 12, 2001 at
www.allscripts.com or by calling 1-800-642-1687, ID #2053839.

About Allscripts Healthcare Solutions

Allscripts Healthcare Solutions is the leading provider of point-of-care
decision support solutions for physicians. The Company’s TouchWorks software
products enhance physician productivity and are accessed using a wireless
handheld or desktop workstation to automate the most common physician
activities including prescribing, capturing charges, dictating, ordering labs
and viewing results, providing patient education, and taking clinical notes.
Additionally, Allscripts provides patient compliance and healthcare product
education services for physicians through its Physicians Interactive unit.
Allscripts provides services to over 15,000 physicians at more than 4,000
sites across the U.S.

TouchWorks, Physicians Interactive, and e-Detailing are trademarks of
Allscripts Healthcare Solutions. 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 2000 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                                          2001               2000
                                                 (unaudited)
     Current assets
         Cash and cash equivalents                 $40,576            $76,513
         Marketable securities                       6,395             20,663
         Accounts receivable, net                   15,447             13,850
         Other receivables                           1,608              1,291
         Inventories                                 6,296              5,290
         Prepaid expenses and other
          current assets                             2,817              1,724
             Total current assets                   73,139            119,331

     Long-term marketable securities                36,277             22,661
     Fixed assets, net                               9,782             11,792
     Intangible assets, net                          5,769            149,690
     Other assets                                    3,524              1,946
             Total assets                         $128,491           $305,420

Liabilities and Stockholders’ Equity

Current liabilities

         Accounts payable                           $6,416             $7,269
         Accrued expenses                            2,526              2,546
         Accrued compensation                        1,941              2,525
         Accrued restructuring and other charges     4,340                -
         Deferred revenue                            3,404              1,877
             Total current liabilities              18,627             14,217

     Deferred taxes                                  2,188                -
     Other liabilities                                 405                228
             Total  liabilities                     21,220             14,445

     Stockholders' equity                          107,271            290,975

             Total liabilities and
              stockholders' equity                $128,491           $305,420


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

                                      Three Months Ended    Nine Months Ended
                                         September 30,        September 30,
                                         2001      2000       2001      2000
                                          (unaudited)          (unaudited)

    Revenue                            $16,415   $14,838    $52,133   $36,601

    Cost of revenue                     16,352    11,654     48,754    28,743
    Gross profit                            63     3,184      3,379     7,858

    Operating expenses:
          Selling, general and
           administrative expenses      14,873    11,624     44,956    31,317
          Amortization of
           intangibles                  18,478     9,020     54,894    15,037
          Restructuring and other
           charges                       8,636       -        8,636       -
          Asset impairment charge      354,984       -      354,984       -
          Write-off of acquired in-
           process research and
           development                     -         -        3,000    13,729
        Loss from operations          (396,908)  (17,460)  (463,091)  (52,225)

    Interest income, net                 1,032     2,300      3,948     5,824
    Other income, net                        7       (53)       398      (122)
    Loss from continuing operations
     before taxes                     (395,869)  (15,213)  (458,745)  (46,523)

    Income tax benefit                  44,012       -       48,360       -
    Loss from continuing operations   (351,857)  (15,213)  (410,385)  (46,523)

    Discontinued operations                -         -          -       4,436
    Net loss                         $(351,857) $(15,213) $(410,385) $(42,087)

    Pro forma net loss (See
     Footnote 1)                      $(11,831)  $(5,614)  $(31,591) $(12,742)

    Per-share data - basic and
     diluted:
        Continuing operations           $(9.26)   $(0.52)   $(10.86)   $(1.70)
        Discontinued operations            -         -          -        0.16
        Net loss                        $(9.26)   $(0.52)   $(10.86)   $(1.54)

        Pro forma net loss per share
         (See Footnote 1)               $(0.31)   $(0.19)    $(0.84)   $(0.46)

    Weighted average shares of
     common stock outstanding
       used in computing per-share
        data-- basic and diluted        38,005    29,342     37,775    27,409

Footnote 1

       Pro forma net loss and related per-share data -- basic and diluted
       excludes restructuring and other charges, asset impairment charge,
       amortization of intangibles, and the expensing of acquired in-process
       research and development, net of tax effect .  For the three and
       nine months ended September 30, 2000, pro forma net loss also excludes
       the amortization of acquired software in connection with acquisitions
       of $579,000 for both periods.  For the three and nine months ended
       September 30, 2001, pro forma net loss also excludes the amortization
       of acquired software in connection with acquisitions of $1,940,000, and
       $5,640,000, respectively. This amortization has been included in cost
       of revenue.

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SOURCE Allscripts Healthcare Solutions, Inc.

CONTACT: David Mullen, Chief Financial Officer, +1-800-654-0889,
Ext. 282, dave.mullen@allscripts.com , or Dan Michelson, Vice President of
Marketing, +1-800-654-0889, Ext. 4330, dan.michelson@allscripts.com , both of
Allscripts Healthcare Solutions, Inc./

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