SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
FORM 8-K
Date of Report (Date of earliest event reported): February 6, 2003
Commission file Number: 000-32085
ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.
(Exact
name of registrant as specified in its charter)
| Delaware | 36-4392754 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) | |
2401 Commerce Drive
Libertyville,
Illinois 60048
(Address of Principal
Executive Offices and Zip Code)
(847) 680-3515
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Item 5. Other Events.
On February 6, 2003, the registrant announced its earnings for the quarter ended December 31, 2002. Further details are described in the press release issued by the registrant on February 6, 2003, and filed as Exhibit 99.1 hereto and incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits.
99.1 Press Release issued February 6, 2003.
1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.
By: /s/ William J. Davis
William J. Davis
Chief Financial Officer
Date: February 13, 2003
S-1
INDEX TO EXHIBITS
Exhibit
Number Description
99.1 Press Release issued February 6, 2003
E-1
EXHIBIT 99.1
Allscripts Healthcare Solutions Contacts:
Bill Davis Dan Michelson
Chief Financial Officer &nbs
p; Vice President of Marketing
847-680-3515, Ext. 282 847-680-3515, Ext. 4330
bill.davis@allscripts.com
dan.michelson@allscripts.com
FOR IMMEDIATE RELEASE
Allscripts Reports Fourth Quarter 2002 Results
Software and Information Services Revenue Increases 42%
CHICAGO, IL - February 6, 2003 -- Allscripts Healthcare Solutions, Inc. (NASDAQ: MDRX), a leading provider of clinical software and information solutions for physicians, announced its results for the three and twelve months ended December 31, 2002.
Total revenue for the three months ended December 31, 2002, was $19.9 million, increasing by 7% over the three months ended December 31, 2001. For the three months ended December 31, 2002, revenue from software and information services was $8.4 million, increasing by 42% over the comparable period last year.
Net loss for the three months ended December 31, 2002, was $2.0 million, or $0.05 per share, compared with a net loss of $8.5 million, or $0.22 per share for the same period last year.
As of December 31, 2002, the Company had cash and marketable securities of $65.3 million and no debt.
"Our fourth quarter demonstrated strong sales traction in our TouchWorks™ and Physicians Interactive™ (PI) businesses. TouchWorks sales exceeded $7.3 million, up from $4.6 million in the third quarter, with the average TouchWorks contract size increasing from $220,000 to $370,000. PI e-Detailing™ sales exceeded $4.4 million, up from $2.6 million in the third quarter," commented Glen Tullman, Chief Executive Officer of Allscripts Healthcare Solutions. "Total backlog increased by $5.0 million to $35.0 million, which improves our visibility for 2003."
For the twelve months ended December 31, 2002, total revenue was $78.8 million, up 11% from 2001. Software and information services revenue for the twelve months ended December 31, 2002, increased by 39% from $21.2 million in 2001 to $29.5 million in 2002. Net loss for the twelve months ended December 31, 2002, was $15.2 million, or $0.40 per share, compared with a net loss of $418.9 million, or $11.07 per share, in 2001.
Allscripts Healthcare Solutions will conduct a conference call on Thursday, February 6, 2003, at 4:30 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 February 20, 2003, at www.allscripts.com or by calling 1-800-642-1687, ID #7653860.
About Allscripts Healthcare Solutions
Allscripts Healthcare Solutions is a leading provider of clinical software and information solutions for physicians. The Company's TouchWorks software is a modular electronic medical record that enhances physician productivity using a wireless handheld device, Tablet PC, or desktop workstation to automate the most common physician activities including prescribing, capturing charges, dictating, ordering labs and viewing results, providing patient education, and documenting clinical encounters. Additionally, AHS provides patient compliance and healthcare product education services for physicians through its Physicians Interactive business and also provides medication fulfillment services. AHS provides software and services to over 20,000 physicians across the U.S.
Strategic partners include IDX Systems (NASDAQ: IDXC); IMS Health (NYSE: RX); Microsoft (NASDAQ: MSFT); HP (NYSE: HPQ); Express Scripts (NASDAQ: ESRX); and Medco Health.
TouchWorks, Physicians Interactive, and PI e-Detailing are trademarks of Allscripts Healthcare Solutions. Visit AHS on the Web at www.allscripts.com.
This announcement may contain forward-looking statements about Allscripts Healthcare Solutions that involve risks and uncertainties. These statements are developed by combining currently available information with Allscripts' beliefs and assumptions. Forward-looking statements do not guarantee future performance. 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 2001 Annual Report on Form 10-K, available through the Web site maintained by the Securities and Exchange Commission at www.sec.gov.
###
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Balance Sheets
(amounts in thousands)
(Unaudited)
| December 31, | December 31, | ||
| 2002
|
2001
| ||
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | $17,247 | $34,124 | |
| Marketable securities | 19,117 | 6,352 | |
| Accounts receivable, net | 18,659 | 14,512 | |
| Other receivables | 747 | 671 | |
| Inventories | 3,988 | 6,225 | |
| Other current assets | 3,337
|
2,962
| |
| Total current assets | 63,095 | 64,846 | |
| Long-term marketable securities | 28,922 | 37,814 | |
| Fixed assets, net | 4,384 | 8,449 | |
| Intangible assets, net | 4,793 | 5,516 | |
| Other assets | 3,159
|
819
| |
| Total assets | $104,353
|
$ 117,444
| |
| Liabilities and Stockholders' Equity | |||
| Current liabilities: | |||
| Accounts payable | $4,488 | $5,160 | |
| Accrued expenses | 3,583 | 3,579 | |
| Accrued compensation | 2,611 | 2,873 | |
| Accrued restructuring and other charges | 1,140 | 2,991 | |
| Deferred revenue | 6,547
|
3,882
| |
| Total current liabilities | 18,369 | 18,485 | |
| Other liabilities | 163
|
325
| |
| Total liabilities | 18,532 | 18,810 | |
| Stockholders' equity | 85,821
|
98,634
| |
| Total liabilities and stockholders' equity | $104,353
|
$117,444
| |
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per-share amounts)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||
| December 31,
|
December 31,
|
|||
| 2002
|
2001
|
2002
|
2001
|
|
| Revenue: | ||||
| Prepackaged medications | $11,540 | $12,777 | $49,298 | $49,672 |
| Software and related services | 5,645 | 4,455 | 19,921 | 17,093 |
| Information services | 2,744
|
1,459
|
9,583
|
4,152
|
| Total revenue | 19,929 | 18,691 | 78,802 | 70,917 |
| Cost of revenue (a) | 14,086 | 15,236 | 58,931 | 64,083 |
| Restructuring and other charges | - |
- |
- |
2,201 |
| Gross profit | 5,843 | 3,455 | 19,871 | 4,633 |
| Operating expenses: | ||||
| Selling, general and administrative expenses | 8,096 | 12,952 | 36,412 | 57,908 |
| Amortization of intangible assets | 133 | 201 | 540 | 55,095 |
| Restructuring and other charges | - | - | 600 | 6,435 |
| Asset impairment charge | - | - | - | 354,984 |
| Write-off of acquired in-process research and development | - |
- |
- |
3,000 |
| Loss from operations | (2,386) | (9,698) | (17,681) | (472,789) |
| Interest income,net | 299 | 824 | 2,251 | 4,772 |
| Other income, net | 39 |
144 |
197 |
542 |
| Loss before income taxes | (2,048) | (8,730) | (15,233) | (467,475) |
| Income tax benefit | - |
184 |
- |
48,544 |
| Net loss | ($2,048) |
($8,546) |
($15,233) |
($418,931) |
| Net loss per share - basic and diluted | ($0.05) |
($0.22) |
($0.40) |
($11.07) |
| Weighted-average shares of common stock outstanding | ||||
| used in computing net loss per share - basic and diluted | 38,426 |
38,013 |
38,337 |
37,835 |
(a) For the three months ended December 31, 2002 and 2001, cost of revenue includes the amortization of acquired software
in connection with acquisitions of $0 and $60, respectively. For the twelve months ended December 31, 2002 and 2001, cost of
revenue includes the amortization of acquired software in connection with acquisitions of $87 and $5,700, respectively.
(b) The following is a reconciliation of net loss and basic and diluted loss per share reflecting the implementation of Statement of
Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets":
| Three Months Ended | Twelve Months Ended | |||
| December 31,
|
December 31,
|
|||
| 2002
|
2001
|
2002
|
2001
|
|
| Reported net loss | ($2,048) | ($8,546) | ($15,233) | ($418,931) |
| Goodwill amortization | -
|
63
|
-
|
43,626
|
| Adjusted net loss | ($2,048) |
($8,483) |
($15,233) |
($375,305) |
| Per-share data - basic and diluted | ||||
| Reported net loss | ($0.05) | ($0.22) | ($0.40) | ($11.07) |
| Goodwill amortization | -
|
-
|
-
|
1.15
|
| Adjusted net loss | ($0.05) |
($0.22) |
($0.40) |
($9.92) |