Allscripts misses on revenues, earnings

February 20, 2013 in Medical Technology

Allscripts President and CEO Paul Black condensed it all in one sentence: “Our fourth quarter and 2012 financial results did not meet our expectations.”

The company tallied a net loss of $24.3 million for the fourth quarter and a total net loss of $1.2 million for all of 2012. Fourth quarter revenue of $350.9 million was down 9.6 percent compared with the same quarter in 2011.

The Feb. 19 earnings call was Black’s first since he was named CEO of Allscripts – 62 days ago, he pointed out.

[See also: Tullman out at Allscripts, Black in.]

Black, a former Cerner executive, succeeded Glen Tullman in the CEO position. Tullman resigned after several tumultuous months and a shake up at the company.

Black reported a fourth-quarter loss on Feb. 19. However, an increase in bookings over the third quarter provided a bright spot.

Bookings of $180.7 million compared with $161.9 million in the third quarter of 2012 and with bookings of $327.4 million in the fourth quarter of 2011.

It was not enough to instill confidence in research analysts at Piper Jaffrey.

“On the surface the new management team seemed to give the “all clear” sign, with bookings up sequentially, costs being rationalized, and new products being sold to eager clients,” Piper Jaffrey analysts Sean Wieland and Mohan Naidu wrote in a brief this morning. “We also are rooting for a comeback, but we think it’s too soon.”

The bookings growth was driven by a higher SaaS mix, they noted. The “lack of guidance and inability to commit to revenue growth in 2013 gives us pause,” they wrote. “We think there is much work to be done in consolidating legacy products and improving customer satisfaction.”

[See also: Clients seek swift Allscripts turnaround.]

During the conference call with investors and analysts, Black said he had been meeting with clients. “I have been actively engaged with our clients and team members and we have taken initial actions to focus the company on attaining results for our clients and shareholders,” Black said.

Black also announced some belt-tightening measures, including closing 12 offices and one warehouse.

Fourth quarter result details on next page.

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