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./