Allscripts slumps as 1Q results disappoint
Allscripts Healthcare Solutions Inc. said Thursday that it took a loss in the first quarter on reduced revenue and a spate of one-time charges.
Shares of the health care information technology company dropped in aftermarket trading.
Allscripts' results included amortization charges and other costs related to two companies it bought in March, job cutting and facility consolidation costs, stock-based compensation expenses, and costs related to the end of its MyWay health record systems. Allscripts also reported less revenue from system sales, professional services and maintenance, and it said contract bookings decreased.
Allscripts lost $11.6 million, or 7 cents per share, in the first quarter. A year earlier it reported a profit of $5.8 million, or 3 cents per share. Excluding one-time items, the company made an adjusted profit of 9 cents per share. Revenue fell 5 percent, to $347.1 million.
Analysts expected an adjusted profit of 14 cents per share on $366.8 million in revenue, according to FactSet.
Allscripts said contract bookings totaled $177.7 million, down 9 percent from a year ago.
In March Allscripts bought dbMotion Ltd. and Jardogs LLC. DbMotion makes a strategic platform that coordinates care and population health management, combining information from many IT sources into a single patient record. Jardogs provides cloud technology that helps patients monitor their health and allows patients, physicians, and caregivers to stay in touch through secure messaging. Patients can also use its technology to re-order prescriptions, pay bills, and schedule appointments.
Allscripts paid $235 million for dbMotion and did not disclose terms of the Jardogs acquisition.
Allscripts said in December that its board finished a strategic review of alternatives and decided that the best course for the company was installing a new management team. CEO and board member Glen Tullman and President Lee Shapiro stepped down, and board member and former Cerner Corp. executive Paul Black became its new president and CEO.
Allscripts shares fell 85 cents, or 6.1 percent, to $13 in after-hours trading. In the regular session the shares rose 10 cents to close at $13.85. The stock has traded between $8.84 and $14.23 in the last 52 weeks.