The stock price of claims clearinghouse and revenue cycle management software vendor Emdeon Inc. fell more than 7 percent on Aug. 6 as the company reported revenue growth but sharply lower earnings in the second quarter of 2010.
Nashville, Tenn.-based Emdeon had net income for the quarter of $7.3 million, down 50 percent from the same period a year ago. Diluted earnings per share were about two-thirds less. Emdeon attributed the profit decline to income tax changes.
Second quarter revenue increased 8 percent to $243.3 million. The company and industry have been affected by industry wide lower health care utilization rates during the past quarter, says George Lazenby, CEO. Recent acquisitions helped boost revenue. Emdeon has seen quarterly organic growth rates of 4 to 5 percent but the softness in utilization dropped organic growth to 1 to 2 percent in the second quarter, according to a spokesperson.
For the first six months of 2010, Emdeon had net income of $11.5 million, down 35 percent, as revenue increased 8 percent to $480.6 million. The company maintained its previously announced annual financial outlook of $1.0-1.06 billion in revenue, $266-278 million in adjusted income and adjusted earnings per share of 90 to 94 cents. More information is available at emdeon.com.
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