Poor 4th Quarter Performance for Allscripts
Bookings and revenue in the fourth quarter of 2012 fell sharply for Allscripts Healthcare Solutions compared with the last quarter of 2011, and a quarterly net profit of $26 million a year ago turned into a $24.3 million loss for the last three months of 2012.
Bookings and revenue in the fourth quarter of 2012 fell sharply for Allscripts Healthcare Solutions compared with the last quarter of 2011, and a quarterly net profit of $26 million a year ago turned into a $24.3 million loss for the last three months of 2012.
Allscripts also announced in a Securities and Exchange filing that it will close 12 offices and a warehouse. “The company is also implementing changes to corporate operating models intended to reduce costs associated with product solutions development,” according to the filing. Allscripts estimates employee severance costs of $10 million, relocation costs up to $16 million, and lease exit costs of about $3 million. The company did not name the affected offices but expects to complete the closures by the end of 2013.
During the fourth quarter of 2012, Allscripts had quarterly revenue of $350.9 million, compared with $388.2 million in the year-ago period. Bookings fell to $180.7 million compared with $327.4 million in the fourth quarter of 2011. The company had non-GAPP earnings per share of 16 cents in the fourth quarter of 2012, compared with analyst expectations of 21 cents.
In the past year, Allscripts went through a lengthy and damaging proxy fight with a dissident major shareholder gaining more seats on the board. The company was shopped to investment firms, which resulted in prospective software clients delaying purchasing decisions or going elsewhere. Allscripts also lost a major contract to Epic Systems Corp. from New York City Health and Hospitals Corporation and wound up filing suit against the large delivery system, which also spooked providers. Finally, in December, the board replaced CEO Glen Tullman and President Lee Shapiro, with board member Paul Black, a former COO at Cerner Corp., becoming CEO and president.
Allscripts’ stock price was up about 6.5 percent in early after hours trading on February 19.
Allscripts also announced in a Securities and Exchange filing that it will close 12 offices and a warehouse. “The company is also implementing changes to corporate operating models intended to reduce costs associated with product solutions development,” according to the filing. Allscripts estimates employee severance costs of $10 million, relocation costs up to $16 million, and lease exit costs of about $3 million. The company did not name the affected offices but expects to complete the closures by the end of 2013.
During the fourth quarter of 2012, Allscripts had quarterly revenue of $350.9 million, compared with $388.2 million in the year-ago period. Bookings fell to $180.7 million compared with $327.4 million in the fourth quarter of 2011. The company had non-GAPP earnings per share of 16 cents in the fourth quarter of 2012, compared with analyst expectations of 21 cents.
In the past year, Allscripts went through a lengthy and damaging proxy fight with a dissident major shareholder gaining more seats on the board. The company was shopped to investment firms, which resulted in prospective software clients delaying purchasing decisions or going elsewhere. Allscripts also lost a major contract to Epic Systems Corp. from New York City Health and Hospitals Corporation and wound up filing suit against the large delivery system, which also spooked providers. Finally, in December, the board replaced CEO Glen Tullman and President Lee Shapiro, with board member Paul Black, a former COO at Cerner Corp., becoming CEO and president.
Allscripts’ stock price was up about 6.5 percent in early after hours trading on February 19.
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