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Allscripts Reports Third Quarter 2001 Results
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
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
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. MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X11712318
SOURCE Allscripts Healthcare Solutions, Inc.
CONTACT: David Mullen, Chief Financial Officer, +1-800-654-0889, Ext. 282, email@example.com , or Dan Michelson, Vice President of Marketing, +1-800-654-0889, Ext. 4330, firstname.lastname@example.org , both of Allscripts Healthcare Solutions, Inc./