Allscripts Healthcare Solutions Reports First Quarter Results

Quarterly Revenue Increases 72% Over Prior Year



Apr 26, 2001, 01:00 ET from Allscripts Healthcare Solutions, Inc.

    CHICAGO, April 26 /PRNewswire/ -- Allscripts Healthcare Solutions, Inc.
 (Nasdaq:   MDRX) today reported its results for the three months ended March 31,
 2001. Total revenue for the first quarter was $16.6 million, a 72% increase
 over the first quarter of 2000.
     Net loss before amortization of intangibles and expensing of acquired
 in-process research and development, net of tax effect, for the first three
 months of 2001 was $10.3 million, or $0.28 per share.
     Loss from continuing operations for the first quarter was $30.8 million,
 or $0.83 per share, compared with a loss of $6.3 million, or $0.25 per share
 in the same period last year.  Net loss for the quarter ended March 31, 2001
 was $30.8 million, compared with net loss of $2.0 million in the same period
 last year.  Net loss for the quarter ended March 31, 2000 includes $4.2
 million of gain on the sale of the Company's pharmacy benefit management
 business.
     The first quarter results include the financial results of ChannelHealth
 Incorporated, which the Company acquired in January 2001, since the date of
 acquisition, as well as an immediate expensing of acquired in-process research
 and development costs of $3.0 million associated with this acquisition.
     "With the release of TouchWorks in the first quarter, Allscripts is now in
 a position to deliver a fully integrated solution that we believe physicians
 will want to use and will add real, measurable value to the healthcare process
 and its key constituents," commented Glen Tullman, Chief Executive Officer of
 Allscripts Healthcare Solutions.  "The reception in the marketplace has been
 strong, with many larger physician groups signing contracts, including
 Dartmouth-Hitchcock Medical Center, Scott and White Clinic and Hospital,
 Temple University Health System, the University of South Florida Physicians
 Group and, most recently, Iowa Health System, which we announced today.
 During this quarter, we also signed significant strategic partnerships with
 Compaq, Merck-Medco, and Microsoft.  Coupled with our existing strong
 relationships with Express Scripts, IDX Systems, and IMS, we continue to
 strengthen our value proposition to existing and potential customers,
 especially larger physician practices, many of which are associated with large
 academic medical centers and integrated delivery networks (IDNs)."
     Allscripts will conduct a conference call on Thursday, April 26, 2001
 at 5:00 PM Eastern time.  The conference call can be accessed by dialing
 1-800-374-0526, or via the Internet at www.allscripts.com .  A recording
 of the conference call will be available for review through May 3, 2001 at
 www.allscripts.com or by calling 1-800-642-1687, ID# 722491.
 
     About Allscripts Healthcare Solutions
     Allscripts Healthcare Solutions is the leading provider of point-of-care
 decision support solutions for physicians.  The Company's TouchWorks software
 products are designed to enhance physician productivity and are accessed using
 wireless handheld or desktop workstation devices to automate the most common
 physician activities including prescribing, dictation, charge capture, lab
 orders and results, patient education, and clinical notes.  The TouchWorks
 software runs on Microsoft's PocketPC operating system.  Allscripts provides
 its applications on the Compaq iPAQ(TM) and the Hewlett-Packard Jornada
 handheld wireless hardware.  Allscripts also offers its e-prescribing clients
 the option of its FirstFill program, which allows physicians to provide
 patients with the first dosage of the most commonly prescribed medications
 directly from the office or clinic.  Additionally, Allscripts provides patient
 compliance and healthcare product education services for physicians through
 its Physicians Interactive unit.
     Strategic partners include IDX Systems Corporation (Nasdaq:   IDXC), a
 provider of complete healthcare information solutions for physician group
 practices, management service organizations, academic medical centers, and
 integrated delivery networks; IMS Health (NYSE:   RX), the world's leading
 supplier of information solutions to the pharmaceutical and healthcare
 industries; Express Scripts (Nasdaq:   ESRX), the nation's largest independent
 full-service pharmacy benefit manager; Compaq (NYSE:   CPQ) a leading global
 provider of technology and solutions; Merck-Medco, one of the nation's leading
 pharmaceutical benefits management companies; and Microsoft Corporation
 (Nasdaq:   MSFT) the worldwide leader in software, services and Internet
 technologies for personal and business computing.
     Allscripts is headquartered in Illinois and provides services to over
 15,000 physicians at more than 4,000 sites across the U.S.  Visit Allscripts
 on the Web at Allscripts.com.  Allscripts Healthcare Solutions, Allscripts,
 Allscripts FirstFill, ChannelHealth, Physicians Interactive, TouchScript,
 TouchWorks Enterprise, and TouchWorks Professional, are all trademarks of
 Allscripts Healthcare Solutions or its affiliates.
     This announcement contains forward-looking statements about
 Allscripts Healthcare Solutions that involve risks and uncertainties.  These
 forward-looking statements are developed by combining currently available
 information with Allscripts beliefs and assumptions.  These statements often
 contain words like will, believe, expect, anticipate, intend, contemplate,
 seek, plan, estimate or similar expressions.  Forward-looking statements do
 not guarantee future performance.  These statements are made under the
 protection afforded them by Section 21E of the Securities Exchange Act of
 1934.  Because Allscripts cannot predict all of the risks and uncertainties
 that may affect it, or control the ones it does predict, Allscripts' actual
 results may be materially different from the results expressed in its forward-
 looking statements.  For a more complete discussion of the risks,
 uncertainties and assumptions that may affect Allscripts, see the Company's
 2000 Annual Report on Form 10-K.  This document can be obtained through the
 Web site maintained by the Securities and Exchange Commission at www.sec.gov .
 
 
                     Allscripts Healthcare Solutions, Inc.
                Condensed Consolidated Statements of Operations
                (amounts in thousands, except per share amounts)
 
                                                        Three Months Ended
                                                              March 31,
                                                            (unaudited)
                                                       2001             2000
 
     Revenue                                          $16,599         $9,647
 
     Cost of revenue                                   15,588          7,597
     Gross profit                                       1,011          2,050
 
     Operating expenses:
       Selling, general and administrative
        expenses                                       14,907          8,945
       Amortization of intangibles                     17,788            574
       Write-off of acquired in-process
        research and development                        3,000             --
     Loss from operations                             (34,684)        (7,469)
 
     Interest income, net                               1,649          1,183
     Other income, net                                    135             --
 
     Loss from continuing operations
      before taxes                                    (32,900)        (6,286)
 
     Income tax benefit                                 2,099             --
     Loss from continuing operations                  (30,801)        (6,286)
 
     Discontinued operations                               --          4,243
     Net loss                                         (30,801)        (2,043)
 
     Net loss before amortization
      and expensing of acquired in-process
      research and development, net
      of tax effect (See Footnote a)                 $(10,332)       $(1,469)
 
     Per share data- basic and diluted:
       Continuing operations                          $(0.83)        $(0.25)
       Discontinued operations                             --           0.17
       Net loss                                       $(0.83)        $(0.08)
 
     Net loss before amortization and
      expensing of acquired in-process
      research and development, net of
      tax effect (See Footnote a)                     $(0.28)        $(0.06)
 
     Weighted average shares of common
      stock outstanding used in computing
      per share data-- basic and diluted               37,325         24,933
 
     * Footnote A
     Net loss before amortization and expensing of acquired in-process research
     and development, net of tax effect and related per share data -- basic and
     diluted for the three months ended March 31, 2001 also excludes $1,780,000
     for amortization of acquired software in connection with acquisitions.
     This amortization has been included in cost of revenue.
 
 
                     Allscripts Healthcare Solutions, Inc.
                     Condensed Consolidated Balance Sheets
                             (amounts in thousands)
 
                                                     March 31,   December 31,
     Assets                                            2001           2000
                                                   (unaudited)
     Current assets
       Cash and cash equivalents                      $49,964        $76,513
       Marketable securities                            6,731         20,663
       Accounts receivable, net                        14,274         13,850
       Other receivables                                5,163          1,291
       Inventories                                      8,969          5,290
       Prepaid expenses and other current assets        1,689          1,724
         Total current assets                          86,790        119,331
 
     Long-term marketable securities                   44,155         22,661
     Fixed assets, net                                 11,672         11,792
     Intangible assets, net                           401,320        149,690
     Other assets                                       1,553          1,946
       Total assets                                  $545,490      $ 305,420
 
     Liabilities and Stockholders' Equity
 
     Current liabilities
       Accounts payable                                $7,417         $7,269
       Accrued expenses                                 2,404          2,546
       Accrued compensation                               573          2,525
       Deferred revenue                                 1,843          1,877
         Total current liabilities                     12,237         14,217
 
     Deferred taxes                                    46,420             --
 
     Other liabilities                                    497            228
         Total liabilities                             59,154         14,445
 
     Stockholders' equity                             486,336        290,975
 
       Total liabilities and stockholders' equity    $545,490       $305,420
 
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SOURCE Allscripts Healthcare Solutions, Inc.
    CHICAGO, April 26 /PRNewswire/ -- Allscripts Healthcare Solutions, Inc.
 (Nasdaq:   MDRX) today reported its results for the three months ended March 31,
 2001. Total revenue for the first quarter was $16.6 million, a 72% increase
 over the first quarter of 2000.
     Net loss before amortization of intangibles and expensing of acquired
 in-process research and development, net of tax effect, for the first three
 months of 2001 was $10.3 million, or $0.28 per share.
     Loss from continuing operations for the first quarter was $30.8 million,
 or $0.83 per share, compared with a loss of $6.3 million, or $0.25 per share
 in the same period last year.  Net loss for the quarter ended March 31, 2001
 was $30.8 million, compared with net loss of $2.0 million in the same period
 last year.  Net loss for the quarter ended March 31, 2000 includes $4.2
 million of gain on the sale of the Company's pharmacy benefit management
 business.
     The first quarter results include the financial results of ChannelHealth
 Incorporated, which the Company acquired in January 2001, since the date of
 acquisition, as well as an immediate expensing of acquired in-process research
 and development costs of $3.0 million associated with this acquisition.
     "With the release of TouchWorks in the first quarter, Allscripts is now in
 a position to deliver a fully integrated solution that we believe physicians
 will want to use and will add real, measurable value to the healthcare process
 and its key constituents," commented Glen Tullman, Chief Executive Officer of
 Allscripts Healthcare Solutions.  "The reception in the marketplace has been
 strong, with many larger physician groups signing contracts, including
 Dartmouth-Hitchcock Medical Center, Scott and White Clinic and Hospital,
 Temple University Health System, the University of South Florida Physicians
 Group and, most recently, Iowa Health System, which we announced today.
 During this quarter, we also signed significant strategic partnerships with
 Compaq, Merck-Medco, and Microsoft.  Coupled with our existing strong
 relationships with Express Scripts, IDX Systems, and IMS, we continue to
 strengthen our value proposition to existing and potential customers,
 especially larger physician practices, many of which are associated with large
 academic medical centers and integrated delivery networks (IDNs)."
     Allscripts will conduct a conference call on Thursday, April 26, 2001
 at 5:00 PM Eastern time.  The conference call can be accessed by dialing
 1-800-374-0526, or via the Internet at www.allscripts.com .  A recording
 of the conference call will be available for review through May 3, 2001 at
 www.allscripts.com or by calling 1-800-642-1687, ID# 722491.
 
     About Allscripts Healthcare Solutions
     Allscripts Healthcare Solutions is the leading provider of point-of-care
 decision support solutions for physicians.  The Company's TouchWorks software
 products are designed to enhance physician productivity and are accessed using
 wireless handheld or desktop workstation devices to automate the most common
 physician activities including prescribing, dictation, charge capture, lab
 orders and results, patient education, and clinical notes.  The TouchWorks
 software runs on Microsoft's PocketPC operating system.  Allscripts provides
 its applications on the Compaq iPAQ(TM) and the Hewlett-Packard Jornada
 handheld wireless hardware.  Allscripts also offers its e-prescribing clients
 the option of its FirstFill program, which allows physicians to provide
 patients with the first dosage of the most commonly prescribed medications
 directly from the office or clinic.  Additionally, Allscripts provides patient
 compliance and healthcare product education services for physicians through
 its Physicians Interactive unit.
     Strategic partners include IDX Systems Corporation (Nasdaq:   IDXC), a
 provider of complete healthcare information solutions for physician group
 practices, management service organizations, academic medical centers, and
 integrated delivery networks; IMS Health (NYSE:   RX), the world's leading
 supplier of information solutions to the pharmaceutical and healthcare
 industries; Express Scripts (Nasdaq:   ESRX), the nation's largest independent
 full-service pharmacy benefit manager; Compaq (NYSE:   CPQ) a leading global
 provider of technology and solutions; Merck-Medco, one of the nation's leading
 pharmaceutical benefits management companies; and Microsoft Corporation
 (Nasdaq:   MSFT) the worldwide leader in software, services and Internet
 technologies for personal and business computing.
     Allscripts is headquartered in Illinois and provides services to over
 15,000 physicians at more than 4,000 sites across the U.S.  Visit Allscripts
 on the Web at Allscripts.com.  Allscripts Healthcare Solutions, Allscripts,
 Allscripts FirstFill, ChannelHealth, Physicians Interactive, TouchScript,
 TouchWorks Enterprise, and TouchWorks Professional, are all trademarks of
 Allscripts Healthcare Solutions or its affiliates.
     This announcement contains forward-looking statements about
 Allscripts Healthcare Solutions that involve risks and uncertainties.  These
 forward-looking statements are developed by combining currently available
 information with Allscripts beliefs and assumptions.  These statements often
 contain words like will, believe, expect, anticipate, intend, contemplate,
 seek, plan, estimate or similar expressions.  Forward-looking statements do
 not guarantee future performance.  These statements are made under the
 protection afforded them by Section 21E of the Securities Exchange Act of
 1934.  Because Allscripts cannot predict all of the risks and uncertainties
 that may affect it, or control the ones it does predict, Allscripts' actual
 results may be materially different from the results expressed in its forward-
 looking statements.  For a more complete discussion of the risks,
 uncertainties and assumptions that may affect Allscripts, see the Company's
 2000 Annual Report on Form 10-K.  This document can be obtained through the
 Web site maintained by the Securities and Exchange Commission at www.sec.gov .
 
 
                     Allscripts Healthcare Solutions, Inc.
                Condensed Consolidated Statements of Operations
                (amounts in thousands, except per share amounts)
 
                                                        Three Months Ended
                                                              March 31,
                                                            (unaudited)
                                                       2001             2000
 
     Revenue                                          $16,599         $9,647
 
     Cost of revenue                                   15,588          7,597
     Gross profit                                       1,011          2,050
 
     Operating expenses:
       Selling, general and administrative
        expenses                                       14,907          8,945
       Amortization of intangibles                     17,788            574
       Write-off of acquired in-process
        research and development                        3,000             --
     Loss from operations                             (34,684)        (7,469)
 
     Interest income, net                               1,649          1,183
     Other income, net                                    135             --
 
     Loss from continuing operations
      before taxes                                    (32,900)        (6,286)
 
     Income tax benefit                                 2,099             --
     Loss from continuing operations                  (30,801)        (6,286)
 
     Discontinued operations                               --          4,243
     Net loss                                         (30,801)        (2,043)
 
     Net loss before amortization
      and expensing of acquired in-process
      research and development, net
      of tax effect (See Footnote a)                 $(10,332)       $(1,469)
 
     Per share data- basic and diluted:
       Continuing operations                          $(0.83)        $(0.25)
       Discontinued operations                             --           0.17
       Net loss                                       $(0.83)        $(0.08)
 
     Net loss before amortization and
      expensing of acquired in-process
      research and development, net of
      tax effect (See Footnote a)                     $(0.28)        $(0.06)
 
     Weighted average shares of common
      stock outstanding used in computing
      per share data-- basic and diluted               37,325         24,933
 
     * Footnote A
     Net loss before amortization and expensing of acquired in-process research
     and development, net of tax effect and related per share data -- basic and
     diluted for the three months ended March 31, 2001 also excludes $1,780,000
     for amortization of acquired software in connection with acquisitions.
     This amortization has been included in cost of revenue.
 
 
                     Allscripts Healthcare Solutions, Inc.
                     Condensed Consolidated Balance Sheets
                             (amounts in thousands)
 
                                                     March 31,   December 31,
     Assets                                            2001           2000
                                                   (unaudited)
     Current assets
       Cash and cash equivalents                      $49,964        $76,513
       Marketable securities                            6,731         20,663
       Accounts receivable, net                        14,274         13,850
       Other receivables                                5,163          1,291
       Inventories                                      8,969          5,290
       Prepaid expenses and other current assets        1,689          1,724
         Total current assets                          86,790        119,331
 
     Long-term marketable securities                   44,155         22,661
     Fixed assets, net                                 11,672         11,792
     Intangible assets, net                           401,320        149,690
     Other assets                                       1,553          1,946
       Total assets                                  $545,490      $ 305,420
 
     Liabilities and Stockholders' Equity
 
     Current liabilities
       Accounts payable                                $7,417         $7,269
       Accrued expenses                                 2,404          2,546
       Accrued compensation                               573          2,525
       Deferred revenue                                 1,843          1,877
         Total current liabilities                     12,237         14,217
 
     Deferred taxes                                    46,420             --
 
     Other liabilities                                    497            228
         Total liabilities                             59,154         14,445
 
     Stockholders' equity                             486,336        290,975
 
       Total liabilities and stockholders' equity    $545,490       $305,420
 
                     MAKE YOUR OPINION COUNT -  Click Here
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 SOURCE  Allscripts Healthcare Solutions, Inc.