Story URL: http://news.medill.northwestern.edu/chicago/news.aspx?id=221268
Story Retrieval Date: 7/24/2014 12:44:52 PM CST
Catherine Brzycki/ MEDILL Reports
Allscripts Healthcare Solutions Inc. shares came under pressure late Thursday, after the Chicago company disappointed investors by turning in lower-than-expected first-quarter results.
In the latest quarter, the provider of electronic health record technology had a net loss of $11.6 million, or 7 cents per diluted share. That’s in contrast to the year-ago quarter, when the company reported net income of $5.8 million, or 3 cents per share.
Excluding non-recurring expenses and transaction-related costs, Allscripts said, the company had “non-GAAP” earnings of $16.2 million, or 9 cents a share, compared with non-GAAP earnings in last year’s quarter of $22.5 million, or 12 cents a share.
Allscripts’ revenue fell 5.1 percent to $347.1 million from $364.7 in the first quarter 2012.
The latest quarter’s adjusted earnings, which were released after the market’s close Thursday, fell a nickel short of the 14 cents a share analysts surveyed by Bloomberg had been expecting. In after-hours Nasdaq trading, Allscripts shares stumbled $1.15, or 8.3 percent, to $13.85
The company is investing in “both our clients and our products,” President and Chief Executive Officer Paul Black said in a press release, “and so while our financial results for the quarter are not surprising, they are not satisfactory and not indicative of our longterm potential.”
Black was named to the top job at Allscripts in December, after his predecessor departed in what the company said was a “mutual agreement.”
Despite the recent management turmoil, Allscripts is considered to be well positioned to benefit from provisions in the Affordable Care Act, which seeks to use technology to hold down medical costs.
“This is a rebuilding year for Allscripts and I remain confident we are taking the right steps forward," said Black.