CHICAGO, Oct 24, 2002 /PRNewswire-FirstCall via COMTEX/ —
Technology Revenue Increases 49% Year Over Year
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 months ended September 30, 2002.
Total revenue for the three months ended September 30, 2002, was $20.0 million,
increasing by 22% over the three months ended September 30, 2001. During the
third quarter, technology revenue, which includes revenue from software and
related services and information services, was $7.2 million, increasing by 49%
over the comparable period last year.
Net loss for the three months ended September 30, 2002, was $3.2 million, or
$0.08 per share, compared with a net loss of $351.9 million, or $9.26 per share
for the same period last year. Results for the third quarter of 2002 include a
charge of $0.6 million related to restructuring and other charges, taken
primarily in connection with the departure of an executive during the quarter.
The results of operations for the three months ended September 30, 2001 include
a charge of $321.9 million, net of tax benefit, related to a restructuring plan
and a non-cash impairment charge.
As of September 30, 2002, the Company had cash and marketable securities of
$66.2 million and no debt.
“I am proud of our progress in growing our customer base, strengthening our
product line, and improving the efficiency of our implementation process, all
while controlling our expenses,” stated Glen Tullman, Chairman and Chief
Executive Officer. “In our TouchWorks(TM) unit, we continue to see strong demand
for our products as demonstrated by the agreements we announced today. Our
clients are reporting strong physician utilization and return-on- investment;
both are key drivers in the purchase of additional modules and critical to our
long-term success. Additionally, our Physicians Interactive(TM) unit continues
to make solid penetration into the largest pharmaceutical companies in the
world, driven by our ability to quickly reach and communicate with physicians.”
Tullman continued, “Last week, at our first National TouchWorks Users
Conference, over 130 attendees representing 46 clients joined us to discuss the
progress they are making with our applications. We previewed Version 9.0 of our
TouchWorks modular electronic medical record as well as new versions of the
Hewlett-Packard iPAQ PDA and Microsoft Tablet PC operating system. The response
to our current offering, as well as our new advances, was overwhelmingly
positive.”
For the nine months ended September 30, 2002, total revenue was $58.9 million,
up 13% from the comparable period in 2001. Technology revenue for the nine
months ended September 30, 2002, increased by 38% from $15.3 million in 2001 to
$21.1 million in 2002. Net loss for the nine months ended September 30, 2002,
was $13.2 million, or $0.34 per share, compared with a net loss of $410.4
million, or $10.86 per share, for the same period last year.
Allscripts will conduct a conference call on Thursday, October 24, 2002, 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 8, 2002, at www.allscripts.com or
by calling 1-800-642-1687, ID #5693495.
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 using wireless PDAs, Tablet PCs or
desktop workstations to automate the most common physician activities including
prescribing, capturing charges, dictating, ordering labs and viewing results,
providing patient education and taking clinical notes. The Company also provides
medication fulfillment services. Additionally, Allscripts provides interactive
physician education services for pharmaceutical, biotechnology and medical
device companies through its Physicians Interactive unit.
Strategic partners include IDX Systems (Nasdaq: IDXC); IMS Health (NYSE: RX);
Microsoft (Nasdaq: MSFT); Hewlett Packard (NYSE: HPQ); Express Scripts (Nasdaq:
ESRX); and Medco Health.
TouchWorks and Physicians Interactive 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 2001 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 2002 2001
(Unaudited)
Current assets
Cash and cash equivalents $18,471 $34,124
Marketable securities 12,297 6,352
Accounts receivable, net 16,803 13,811
Other receivables 2,005 1,372
Inventories 4,011 6,225
Prepaid expenses and other
current assets 3,447 2,962
Total current assets 57,034 64,846Long-term marketable securities 35,453 37,814
Fixed assets, net 5,321 8,449
Intangible assets, net 4,920 5,516
Other assets 2,389 819
Total assets $105,117 $117,444Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $5,701 $5,626
Accrued expenses 2,578 3,113
Accrued compensation 2,924 2,873
Accrued restructuring and other
charges 1,439 2,991
Deferred revenue 4,480 3,882
Total current liabilities 17,122 18,485Other liabilities 145 325
Total liabilities 17,267 18,810Stockholders’ equity 87,850 98,634
Total liabilities and
stockholders’ equity $105,117 $117,444Allscripts 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,
2002 2001 2002 2001Revenue:
Prepackaged medications $12,806 $11,613 $37,765 $36,895
Software and related
services 4,812 3,937 14,269 12,638
Information services 2,388 904 6,839 2,693
Total revenue 20,006 16,454 58,873 52,226Cost of revenue (A) 14,770 16,391 44,845 48,847
Restructuring and
other charges – 2,201 – 2,201
Gross profit (loss) 5,236 (2,138) 14,028 1,178Operating expenses:
Selling, general and
administrative expenses 8,314 14,873 28,316 44,956
Amortization of intangibles 135 18,478 407 54,894
Restructuring and other
charges 600 6,435 600 6,435
Asset impairment charge – 354,984 – 354,984
Write-off of acquired in-
process research and
development – – – 3,000
Loss from operations (3,813) (396,908) (15,295) (463,091)Interest income, net 552 1,032 1,952 3,948
Other income, net 62 7 158 398
Loss before income taxes (3,199) (395,869) (13,185) (458,745)Income tax benefit – 44,012 – 48,360
Net loss ($3,199) ($351,857) ($13,185) ($410,385)Net loss per-share – basic and
diluted ($0.08) ($9.26) ($0.34) ($10.86)Weighted average shares of
common stock outstanding:
Basic and diluted 38,424 38,005 38,308 37,775(A) For the three months ended September 30, 2002 and 2001, cost of
revenue includes the amortization of acquired software in connection
with acquisitions of $0 and $1,940, respectively. For the nine months
ended September 30, 2002 and 2001, cost of revenue includes the
amortization of acquired software in connection with acquisitions of
$87 and $5,640, respectively.(B) The following is a reconciliation of net loss and basic and diluted
loss per share reflecting the implementation of Statement of Financial
Accounting Standards No. 142, “Goodwill and Other Intangible Assets”:Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001Reported net loss ($3,199) ($351,857) ($13,185) ($410,385)
Goodwill amortization – 14,611 – 43,563
Adjusted net loss ($3,199) ($337,246) ($13,185) ($366,822)Per-share data – basic
and diluted:
Reported net loss ($0.08) ($9.26) ($0.34) ($10.86)
Goodwill
amortization – 0.39 – 1.15
Adjusted net loss ($0.08) ($8.87) ($0.34) ($9.71)Make Your Opinion Count – Click Here
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SOURCE Allscripts Healthcare Solutions, Inc.
CONTACT: Bill Davis, Chief Financial Officer, +1-847-680-3515, Ext. 282
bill.davis@allscripts.com , or Dan Michelson, Vice President of Marketing
+1-847-680-3515, Ext. 4330, dan.michelson@allscripts.com , both of Allscripts
Healthcare SolutionsURL: https://www.allscripts.com
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