Yesterday, Allscripts-Misys Healthcare Solutions, Inc. (MDRX) reported earnings per share of 15 cents for the first quarter of fiscal 2010, beating the Zacks Consensus Estimate of 13 cents. The company reported earnings of 18 cents in the year-ago period.
Revenues for the quarter were $167.5 million, compared to $164.7 million in the year-ago quarter. The company reported strong bookings in the quarter. Total bookings were $97.5 million, increasing roughly 47% year over year. The growth can be primarily attributed to strong software as a service (SAS) transactions. SAS bookings were $25.1 million, compared to $13.9 million in the year-ago quarter.
A higher SAS booking is an indication of an increasing trend among physicians to use the Electronic Health Record (EHR) systems. This is buoyed by the recent Medicare Improvements for Patients and Providers Act of 2008 (H.R. 6331) passed by the U.S. government that provides incentives to physicians who will use EHR 2011 onwards.
Allscripts reported an expansion in margins. Gross margin for the quarter was 54.7%, compared to 53.9% in the year-ago quarter. Net margin was roughly 13.3%, versus 9.0% in the year-ago quarter.
Allscripts ended the quarter with a cash balance of $86.9 million, increasing approximately 18% sequentially. The increase was primarily due to a strong cash flow of roughly $21.3 million from the company’s operations. Long-term debt stood at roughly $40 million at the end of the quarter.
Allscripts provided guidance for the full fiscal year 2010. Revenues are expected in the range of $680 million to $700 million. Earnings per share are estimated to be in the range of 59 cents to 61 cents. The company expects to record $11 million in stock-based compensation expenses.
Libertyville, IL-based Allscripts Healthcare Solutions, Inc. is a leading provider of clinical software and information solutions for physicians. In Oct. 2008, the company merged with Misys Plc, a global applications software and services company, to form Allscripts-Misys Healthcare Solutions, Inc.
Allscripts faces strong competition from Cerner Corporation (CERN), Quality Systems Inc. (QSII) and MedAssets Inc. (MDAS).
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Read the full analyst report on “QSII”
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