Allscripts Healthcare Solutions, Inc.
) posted adjusted earnings per share of 3 cents for the first
quarter of 2014, exactly halved from 6 cents in the same quarter of
2013 and missed the Zacks Consensus Estimate by a penny. Adjusted
earnings exclude stock based compensation and deferred revenues and
Adjusted net earnings plunged 86.4% to $5.9 million from $11.0
million in the first quarter of 2013. On a reported basis, MDRX
incurred a broader loss of $20.7 million or 12 cents per share
compared with $11.6 million or 7 cents in the first quarter of
2013, mainly due to lower revenues.
Revenues in the quarter slid 2.0% to $340.3 million, also lagging
the Zacks Consensus Estimate of $348 million. After considering
deferred revenues and other adjustments, revenues stood at $344.8
million, down 0.9% from the prior-year quarter. The decrease can be
attributable to lower revenues generated from all the operating
segments, except Transaction processing and other.
Revenues declined 13.3% to $23.4 million from System sales, 17.5%
to $50.4 million from Professional services, and 0.5% to $117.1
million from Maintenance but grew 5.7% to $149.4 million from
Transaction processing and other.
Bookings went up 25.5% to $223.0 million in the quarter from $177.7
million in the first quarter of 2013. About 36% of total bookings
in the quarter were derived from Allscripts' Population Health
Management solutions. Contract backlog continued to expand. It grew
25.4% to $3.4 billion as of Mar 31, 2014.
In the first quarter, adjusted gross profits edged up 2.3% to
$148.9 million while adjusted gross margin rose 190 basis points
(bps) year over year to 43.8%. Adjusted operating earnings declined
2.3% to $8.5 million while adjusted operating margin was flat at
2.5% during the quarter.
MDRX had cash and cash equivalents of $41.6 million as of Mar 31,
2014, down 34.0% from $63.0 million as of Dec 31, 2013. Long-term
debt (including capital lease obligations) fell 2.2% to $548.9
million from $561.5 million as of Dec 31, 2013. Consequently,
long-term debt to capitalization ratio decreased 30 bps to 29.6%
from 29.9% as of Dec 31, 2013.
In the quarter, cash flow from operating activities significantly
declined by 45.8% to $21.3 million from $39.3 million in the
2013-quarter. Capital expenditure decreased 27.4% to $11.9 million
compared with $16.4 million a year ago.
MDRX, a Zacks Rank #4 (Sell) stock, is a leading provider of
clinical software and information solutions for physicians. The
company serves approximately 180,000 physician practices, 1,500
hospitals, and 10,000 post acute care facilities. It had 5,500
employees with facilities in 24 U.S. states, Canada, India, The
Philippines and Middle East.
Some better-ranked stocks in the medical products industry include
INSYS Therapeutics, Inc.
Mead Johnson Nutrition Company
). All of these carry a Zacks Rank #2 (Buy).
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