Delayed Meaningful Use Revenue Cuts into CPSI 2Q Results
Revenue fell but income rose during the second quarter of 2012 for community hospital information systems vendor Computer Programs and Systems Inc.
Revenue fell but income rose during the second quarter of 2012 for community hospital information systems vendor Computer Programs and Systems Inc.
The company says considerable revenue generated in the quarter will be recognized at a later date when clients achieve electronic health records meaningful use recognition. That explanation helped boost the company’s stock value by 2.2 percent in early trading on July 27.
CPSI had second quarter revenue of $45.7 million, compared with $48.8 million during the same period a year ago. Net income increased 4.4 percent to $8.3 million. Revenue of $90.2 million during the first six months was nearly flat compared with a year ago, but income rose 4.7 percent to $13.9 million.
“During the quarter, the Company continued to install systems under contracts for which a substantial majority of the consideration will be received and revenue recognized in subsequent periods upon hospitals successfully achieving Meaningful Use designation,” according to a statement. “The total accumulated unrecognized revenue related to such contracts as of June 30, 2012, was approximately $9.8 million, with approximately $4.7 million of that amount related to installations occurring during the three months ended June 30, 2012.”
The company says considerable revenue generated in the quarter will be recognized at a later date when clients achieve electronic health records meaningful use recognition. That explanation helped boost the company’s stock value by 2.2 percent in early trading on July 27.
CPSI had second quarter revenue of $45.7 million, compared with $48.8 million during the same period a year ago. Net income increased 4.4 percent to $8.3 million. Revenue of $90.2 million during the first six months was nearly flat compared with a year ago, but income rose 4.7 percent to $13.9 million.
“During the quarter, the Company continued to install systems under contracts for which a substantial majority of the consideration will be received and revenue recognized in subsequent periods upon hospitals successfully achieving Meaningful Use designation,” according to a statement. “The total accumulated unrecognized revenue related to such contracts as of June 30, 2012, was approximately $9.8 million, with approximately $4.7 million of that amount related to installations occurring during the three months ended June 30, 2012.”