SECURITIES AND EXCHANGE
COMMISSION
Washington. D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 23, 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 12. Results of Operations and Financial Condition.
On October 23, 2003, the registrant announced its earnings for the quarter ended September 30, 2003. Further details are described in the press release issued by the registrant on October 23, 2003, and filed as Exhibit 99.1 hereto and incorporated herein by reference.
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: October 23, 2003
S-1
INDEX TO EXHIBITS
Exhibit
Number Description
99.1 Press Release issued October 23, 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 Third Quarter 2003 Results
Company Posts Record Revenue and Reiterates Q4 Profitability Guidance
CHICAGO, IL - October 23, 2003 -- Allscripts Healthcare Solutions, Inc. (NASDAQ: MDRX), the leading provider of clinical software and information solutions for physicians, announced its results for the three and nine months ended September 30, 2003.
Total revenue for the three months ended September 30, 2003 was $22.5 million, compared to $20.0 million for the three months ended September 30, 2002. Revenue from software and information services for the three months ended September 30, 2003 was $11.5 million, increasing by 60% over the comparable period last year.
Net loss for the three months ended September 30, 2003 of $0.9 million, or $0.02 per share, compares to a net loss of $3.2 million, or $0.08 per share for the same period last year. The net loss of $0.02 per share in the third quarter of 2003 represents a $0.03 per share improvement over the prior quarter.
At September 30, 2003 the Company had cash and marketable securities of $52.2 million and no debt. Approximately $15.0 million was used during the quarter to consummate the acquisitions of Advanced Imaging Concepts and the assets of RxCentric, Inc.
"We are pleased with our third quarter performance, including record revenues and our third consecutive quarter of positive cash flow from operations," commented Glen Tullman, Chief Executive Officer of Allscripts Healthcare Solutions. "However, the bottom line is about delivering results for our clients. Earlier today, we announced a major expansion of our relationship with Iowa Health System, the largest provider of healthcare in that state, to automate 400 physicians. Additionally, we are pleased to announce that our Physicians Interactive business has signed an agreement with a current client, Abbott Laboratories (NYSE: ABT), one of the 10 largest pharmaceutical companies in the world, to be a preferred provider of online product education services for physicians. Improved results and the expansion of client relationships based on producing solid returns are good indications of the momentum we are building. We are on track for profitability in the fourth quarter of this year."
Total revenue for the nine months ended September 30, 2003 was $62.2 million, increasing by 6% over the nine months ended September 30, 2002. For the nine months ended September 30, 2003, revenue from software and information services was $27.9 million, increasing by 32% over the comparable period last year. Net loss for the nine months ended September 30, 2003 of $5.1 million, or $0.13 per share, compares with a net loss of $13.2 million, or $0.34 per share for the same period last year.
Allscripts Healthcare Solutions will conduct a conference call on Thursday, October 23, 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 November 7, 2003 at www.allscripts.com or by calling 1-800-642-1687, ID #3306592.
About Allscripts Healthcare Solutions
Allscripts Healthcare Solutions (AHS) is the leading provider of clinical software and information solutions for physicians. Our TouchWorks software is a modular electronic medical record that enhances physician productivity using Tablet PCs, wireless handheld devices and desktop workstations to automate the most common physician activities including prescribing, dictating, capturing charges, ordering labs and viewing results, providing patient education, and documenting clinical encounters. AHS also offers electronic document imaging and scanning solutions through our Advanced Imaging Concepts subsidiary. Our Physicians Interactive™ unit is the leading provider of online healthcare product education and market research programs for physicians and our Allscripts Direct™ unit offers medication fulfillment services to a variety of healthcare providers throughout the United States. Visit AHS on the Web at www.allscripts.com.
Strategic partners include IDX Systems (Nasdaq: IDXC); IMS Health (NYSE: RX); Microsoft; Hewlett-Packard Company; and Medco Health.
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 2002 Annual Report on Form 10-K, available through the Web site maintained by the Securities and Exchange Commission at www.sec.gov.
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Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Balance Sheets
(amounts in thousands)
(Unaudited)
| September 30, | December 31, | ||
| 2003
|
2002
| ||
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | $10,496 | $17,247 | |
| Marketable securities | 5,698 | 19,117 | |
| Accounts receivable, net | 15,796 | 18,659 | |
| Other receivables | 369 | 747 | |
| Inventories | 3,244 | 3,988 | |
| Prepaid expenses and other current assets | 4,335
|
3,337
| |
| Total current assets | 39,938 | 63,095 | |
| Long-term marketable securities | 36,004 | 28,922 | |
| Fixed assets, net | 2,566 | 4,384 | |
| Intangible assets, net | 26,676 | 4,793 | |
| Other assets | 3,558
|
3,159
| |
| Total assets | $108,742
|
$104,353
| |
| Liabilities and Stockholders' Equity | |||
| Current liabilities: | |||
| Accounts payable and accrued liabilities | $14,214 | $10,682 | |
| Accrued restructuring and other charges | 180 | 1,140 | |
| Deferred revenue | 9,245
|
6,547
| |
| Total current liabilities | 23,639 | 18,369 | |
| Other liabilities | 2,042
|
163
| |
| Total liabilities | 25,681 | 18,532 | |
| Stockholders' equity | 83,061
|
85,821
| |
| Total liabilities and stockholders' equity | $108,742
|
$104,353
| |
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per-share amounts)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||
| September 30,
| September 30,
|
|||
| 2003
|
2002
|
2003
|
2002
|
|
| Revenue: | ||||
| Prepackaged medications | $10,990 | $12,799 | $34,278 | $37,758 |
| Software and related services | 8,232 | 4,819 | 20,048 | 14,276 |
| Information services | 3,266 |
2,388 |
7,862 |
6,839 |
| Total revenue | 22,488 | 20,006 | 62,188 | 58,873 |
| Cost of revenue | 13,833 |
14,770 |
40,828 |
44,845 |
| Gross profit | 8,655 | 5,236 | 21,360 | 14,028 |
| Operating expenses: | ||||
| Selling, general and administrative expenses | 9,618 | 8,314 | 26,974 | 28,316 |
| Amortization of intangibles | 295 | 135 | 563 | 407 |
| Restructuring and other charges | - |
600 |
- |
600 |
| Loss from operations | (1,258) | (3,813) | (6,177) | (15,295) |
| Interest and other income,net | 340 |
614 |
1,082 |
2,110 |
| Loss before income taxes | (918) | (3,199) | (5,095) | (13,185) |
| Income taxes | - |
- |
- |
- |
| Net loss | ($918) |
($3,199) |
($5,095) |
($13,185) |
| Net loss per share - basic and diluted | ($0.02) |
($0.08) |
($0.13) |
($0.34) |
| Weighted-average shares of common stock outstanding | ||||
| used in computing net loss per share - basic and diluted | 38,628 |
38,424 |
38,509 |
38,308 |