UNITED STATES
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) April 26, 2005
ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 000-32085 | 36-4392754 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| 222 Merchandise Mart Plaza, Suite 2024, Chicago, IL 60654 |
||||
Registrant’s telephone number, including area code (312) 506-1200.
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On April 26, 2005, the registrant announced its earnings for the quarter ended March 31, 2005. Further details are described in the press release issued by the registrant on April 26, 2005, and furnished as Exhibit 99.1 hereto and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
| Exhibit No. |
Description of Exhibit | |
| 99.1 | Press release issued April 26, 2005 | |
2
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. | ||||
| Date: April 26, 2005 |
By: |
/s/ William J. Davis | ||
| William J. Davis | ||||
| Chief Financial Officer | ||||
INDEX TO EXHIBITS
| Exhibit Number |
Description | |
| 99.1 | Press Release issued April 26, 2005 |
Exhibit 99.1
| Allscripts: Dan Michelson Chief Marketing Officer 312-506-1217 dan.michelson@allscripts.com |
Bill Davis Chief Financial Officer 312-506-1211 bill.davis@allscripts.com |
FOR IMMEDIATE RELEASE
Allscripts Reports First Quarter 2005 Results
Clinical Software Sales Increase by 52% Over Prior Year
CHICAGO, IL – April 26, 2005 – Allscripts Healthcare Solutions, Inc. (Nasdaq: MDRX), the leading provider of clinical software, connectivity and information solutions that physicians use to improve healthcare, announced its results for the three months ended March 31, 2005.
Total revenue for the three months ended March 31, 2005, was $26.2 million, compared to $23.2 million for the same period last year. Revenue from software and related services for the three months ended March 31, 2005, was $14.3 million, compared to $8.9 million for the same period last year, increasing by approximately 61%.
Gross margin was approximately 46.4% for the first quarter of 2005, compared to 39.5% during the first quarter of 2004.
Net income for the three months ended March 31, 2005, was $1.3 million, or $0.03 per diluted share, compared to net income of $0.3 million or $0.01 per diluted share for the same period last year.
As of March 31, 2005, the Company had cash and marketable securities of $130.4 million.
“The strong momentum in clinical software sales continued in the first quarter,” commented Glen Tullman, Chief Executive Officer of Allscripts. “Electronic Health Records are becoming a standard of care and Allscripts has firmly established a leadership role in this market. What is exciting is that we are still at the front end of this opportunity.”
Allscripts will conduct a conference call on Tuesday, April 26, 2005, 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 May 20, 2005, at www.allscripts.com or by calling 1-800-642-1687, ID # 5386926.
About Allscripts
Allscripts Healthcare Solutions (Allscripts) is the leading provider of clinical software, connectivity and information solutions that physicians use to improve healthcare. The Company’s business groups provide unique solutions that inform, connect, and transform healthcare. The Clinical Solutions Group’s award-winning clinical software applications include Electronic Health Record (EHR), e-prescribing and document imaging solutions. Additionally, Allscripts provides healthcare product education and
connectivity solutions for physicians and patients through its Physicians Interactive Group and medication fulfillment services through its Medication Services Group. Visit Allscripts 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 2004 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)
| Assets | March 31, 2005 |
December 31, 2004 | ||
| Current assets |
||||
| Cash and cash equivalents |
$25,262 | $16,972 | ||
| Marketable securities |
34,058 | 22,796 | ||
| Accounts receivable, net |
23,278 | 21,382 | ||
| Other receivables |
607 | 627 | ||
| Inventories |
2,169 | 2,372 | ||
| Prepaid expenses and other current assets |
3,815 | 3,571 | ||
| Total current assets |
89,189 | 67,720 | ||
| Long-term marketable securities |
71,066 | 88,471 | ||
| Software development costs, net |
6,155 | 6,270 | ||
| Fixed assets, net |
2,423 | 2,366 | ||
| Intangible assets, net |
24,151 | 24,546 | ||
| Other assets |
5,169 | 4,804 | ||
| Total assets |
$198,153 | $194,177 | ||
| Liabilities and Stockholders’ Equity | ||||
| Current liabilities |
||||
| Accounts payable |
$4,527 | $5,981 | ||
| Accrued expenses |
10,474 | 12,218 | ||
| Deferred revenue |
17,097 | 14,607 | ||
| Total current liabilities |
32,098 | 32,806 | ||
| Other liabilities |
256 | 178 | ||
| Long-term debt |
82,500 | 82,500 | ||
| Total liabilities |
114,854 | 115,484 | ||
| Stockholders’ equity |
83,299 | 78,693 | ||
| Total liabilities and stockholders’ equity |
$198,153 | $194,177 | ||
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per-share amounts)
(Unaudited)
| Three Months Ended March 31, |
||||||
| 2005 |
2004 |
|||||
| Revenue: |
||||||
| Prepackaged medications |
$9,835 | $11,184 | ||||
| Software and related services |
14,310 | 8,895 | ||||
| Information services |
2,050 | 3,076 | ||||
| Total revenue |
26,195 | 23,155 | ||||
| Cost of revenue: |
||||||
| Prepackaged medications |
7,723 | 8,753 | ||||
| Software and related services |
5,124 | 3,512 | ||||
| Information services |
1,181 | 1,744 | ||||
| Total cost of revenue |
14,028 | 14,009 | ||||
| Gross Profit |
12,167 | 9,146 | ||||
| Operating expenses: |
||||||
| Selling, general and administrative expenses |
10,357 | 8,760 | ||||
| Amortization of intangibles |
436 | 429 | ||||
| Income/(loss) from operations |
1,374 | (43 | ) | |||
| Interest expense |
(907 | ) | — | |||
| Interest income |
877 | 217 | ||||
| Other income (expense), net |
(10 | ) | 93 | |||
| Income before income taxes |
1,334 | 267 | ||||
| Income taxes |
— | — | ||||
| Net Income |
$1,334 | $267 | ||||
| Net income per share—basic |
$0.03 | $0.01 | ||||
| Net income per share—diluted |
$0.03 | $0.01 | ||||
| Weighted average shares of common stock outstanding used in computing basic net income per share |
39,073 | 39,169 | ||||
| Weighted average shares of common stock outstanding used in computing diluted net income per share |
42,171 | 41,869 | ||||