Allscripts posts 2Q profit, raises 2010 outlook
Allscripts-Misys Healthcare Solutions Inc., which compiles and maintains electronic health records, said it was profitable in its fiscal second quarter, and it raised its earnings forecast for the year.
CEO Glen Tullman said results were strong across its business and he expects there will be a "significant acceleration" in the adoption and use of healthcare information technology in 2010 to improve quality and reduce cost.
"This is a once in a lifetime market opportunity, driven by the American Recovery and Reinvestment Act and Allscripts is uniquely positioned to win," he said.
Bill Davis, chief financial officer, said the second-quarter results "exceeded our plan" and bookings in the first half that ran 30 percent ahead of a year ago.
The company said it earned $15.8 million, or 10 cents per share, for the quarter ended Nov. 30 versus a loss of $6 million, or 5 cents per share, a year ago. Excluding one-time expenses, Allscripts said its profit totaled 16 cents per share.
Revenue grew 32 percent to $169.3 million from $128.6 million.
According to Thomson Reuters, analysts expected a profit of 15 cents per share and $170.6 million in revenue.
Allscripts reported greater revenue from all parts of its business, as system sales, professional services, maintenance and transaction processing all improved. Maintenance is the company's largest source of revenue, and that total increased 31 percent to $61.3 million from $46.7 million.
The company raised its profit forecast for the year, saying it expects to earn 61 cents to 63 cents per share excluding one-time items. It had estimated earnings of 59 cents to 61 cents per share, excluding stock-based compensation and amortization-related acquisition expenses. Including those items Allscripts expects to earn 41 to 43 cents per share.
The company backed its revenue forecast of $680 million to $700 million for the year ending in May.
Analysts are expecting a profit of 62 cents per share and $695.8 million in revenue, on average.