Allscripts misses revenue, ups bookings
August 9, 2013 in Medical Technology
Allscripts may have missed revenue projections for Q2, but the EHR company was bullish on bookings, seeming to be coming out of the tailspin that began last year with the falling apart of its board of directors, firing of its chairman and finally the stepping down of then CEO Glen Tullman.
Allscripts reported bookings of $214 million, ahead of the pre-announcement of $200 million, an increase of 10 percent year over year. A third of the bookings were derived from population health management solutions. Revenues were $344.8 million, down 7 percent from last year.
On Aug. 8, when Allscripts President and CEO Paul Black announced Q2 results, he put a bright spin on the quarter.
“We achieved important milestones this quarter that strengthen Allscripts long-term market position,” Black said. “While we have important work ahead of us to return Allscripts to sustainable, predictable top-line growth and improved profitability, this quarter’s achievements are certainly encouraging.”
The company announced on August 9 its most recent booking with Mercy Health System in Maine, which purchased Allscripts Revenue Cycle Management Services. Mercy is already using Allscripts’ EHR and practice management system.
Piper Jaffray Senior Research Analyst Sean Wieland issued a report on Allscripts titled “Making Lemonade: Allscripts Misses Revenue and EPS.”
“We absolutely believe the company is moving in the right direction, but still believe the turnaround will take longer and cost more money than the consensus view, and believe the stock is overvalued,” Wieland wrote.
Allscripts issued these highlights for Q2: