BOCA RATON, Fla., July 26 /PRNewswire-FirstCall/ -- Eclipsys Corporation(R) , The Outcomes Company(R), today announced results for the quarter and six months ended June 30, 2005.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050209/FLW006LOGO ) The following table summarizes selected financial data: In thousands, except per Share data Three months ending June 30, 2005 2004 Changes $ Changes % Revenues $95,865 $73,643 $22,222 30.2% Loss per Share $(0.05) $(0.21) $0.16 76.2% In thousands, except per Share data Six months ending June 30, 2005 2004 Changes $ Changes % Revenues $180,300 $142,027 $38,273 26.9% Loss per Share $(0.20) $(0.50) $0.30 60.0% Second-quarter results
Second-quarter 2005 revenues were $95.9 million, compared to revenues of $73.6 million in Q2'04, an increase of 30.2 percent. Net loss for the quarter was $(2.5) million compared to a net loss of $(10.0) million in Q2'04. This represents a $7.5-million or 75.1-percent reduction in net loss from the same period in the prior year. Basic and diluted net loss per share were $(0.05) compared to $(0.21) in Q2'04. The operating results for second-quarter 2005 included $2.2 million or $0.05 per share of costs associated with the transition of the company’s former chief executive officer.
Operating cash flows were $1.7 million in the quarter, compared to $(3.3) million in Q2'04; this represents a $5.0-million improvement compared to Q2'04. Cash, cash equivalents and marketable securities were $108.4 million as of June 30, 2005. Days sales outstanding (DSOs) were 61 days, a decrease of 5 days from the prior year. Deferred revenue (including current and long-term) was $120.9 million as of June 30, 2005, compared to $101.4 million as of June 30, 2004.
Six months ended June 30, 2005
For the six months ended June 30, 2005, revenues were $180.3 million, compared to $142.0 million in the same period in 2004, a 26.9-percent increase. Net loss for the first half of 2005 was $(9.6) million, compared to $(23.0) million in the first six months of 2004; this represents a $13.4-million or 58.1-percent improvement over 2004. Basic and diluted net loss per share for the period was $(0.20), compared to $(0.50) in the first half of 2004, a 60-percent improvement.
Progress continues
“In Q2, we continued to make progress in building a more cohesive, customer-focused and operationally efficient organization,” said Eugene V. Fife, Eclipsys chairman, president and chief executive officer. “This is reflected in our upward trending in customer satisfaction, our continued focus on expanding key markets and our ability to cross sell further into our client base. As we enter the second half of 2005, Eclipsys will continue to build upon the solid start we made in the first half of the year.”
Investor teleconference today
Eclipsys senior executives will discuss the results on a teleconference for investors scheduled for 8:30 a.m. Eastern time today, Tuesday, July 26. Persons interested in participating in the teleconference should call (866) 254-5941 approximately 15 minutes before the conference is slated to begin. For listen-only mode, participants can go to http://www.eclipsys.com prior to the conference call to register and download the necessary audio software. An audio replay will be available for approximately 48 hours beginning at approximately 12 noon Eastern time July 26 by visiting http://www.eclipsys.com.
About Eclipsys
Eclipsys is a leading provider of advanced clinical, financial and management information software and service solutions to more than 1,500 healthcare facilities. Eclipsys empowers healthcare organizations to improve patient safety, revenue cycle management and operational efficiency through innovative information solutions. For more information, see http://www.eclipsys.com or email info@eclipsys.com.
Forward-looking statements
Statements in this news release, and management’s comments and responses to questions during the earnings call referenced in this release, concerning future results, performance or expectations, the results of the company’s development efforts, and the benefits to clients of Eclipsys solutions are forward-looking statements. Actual results may differ from those projected due to a variety of risks and uncertainties. Sales may be slower than expected due to market conditions, competition, and other factors. Costs may be greater than anticipated due to the potential need to increase spending to ensure performance in accordance with commitments to clients. Software development may take longer and cost more than expected, and incorporation of anticipated features and functionality may be delayed, due to various factors including programming and integration challenges and resource constraints. Implementation and customization of Eclipsys software is complex and time-consuming. Contract results depend upon a variety of factors and can vary by client. Each client’s circumstances are unique and may include unforeseen issues that make it more difficult than anticipated to implement or derive benefit from software, outsourcing or consulting services. The success and timeliness of the company’s services often depend at least in part upon client involvement, which can be difficult to control. Eclipsys is required to meet specified performance standards, and client contracts can be terminated or their scope reduced under certain circumstances. More information about company risks is available in recent Form 10-K, 10-Q and other filings made by Eclipsys from time to time with the Securities and Exchange Commission. Special attention is directed to the portions of those documents entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
Eclipsys Michael E. Donner SVP & Chief Marketing Officer (media) (561) 322-4485 michael.donner@eclipsys.com Robert J. Colletti SVP & Chief Financial Officer (investors) (561) 322-4655 investor.relations@eclipsys.com Eclipsys Corporation Consolidated Statements of Operations - Unaudited (000’s Omitted) Three Months Ended June 30, June 30, 2005 2004 Change $ Change % Revenues: Systems and services $91,557 $68,597 $22,960 33.5% Hardware 4,308 5,046 (738) -14.6% Total revenues 95,865 73,643 22,222 30.2% Costs and expenses: Cost of systems and services revenues 55,248 41,795 13,453 32.2% Cost of hardware revenues 3,557 4,337 (780) -18.0% Sales and marketing 16,196 15,458 738 4.8% Research and development 13,974 14,536 (562) -3.9% General and administrative 6,511 4,407 2,104 47.7% Depreciation and amortization 3,583 3,295 288 8.7% Total costs and expenses 99,069 83,828 15,241 18.2% Loss from operations (3,204) (10,185) 6,981 68.5% Interest income, net 719 225 494 219.6% Loss before income taxes (2,485) (9,960) 7,475 75.1% Provision for income taxes -- -- -- Net loss $(2,485) $(9,960) $7,475 75.1% Loss per share: Basic loss per share $(0.05) $(0.21) $0.16 76.2% Diluted loss per share $(0.05) $(0.21) $0.16 76.2% Weighted average shares outstanding: Basic 47,629 46,573 Diluted 47,629 46,573 Eclipsys Corporation Consolidated Statements of Operations - Unaudited (000’s Omitted) Six Months Ended June 30, June 30, 2005 2004 Change $ Change % Revenues: Systems and services $174,685 $130,404 $44,281 34.0% Hardware 5,615 11,623 (6,008) -51.7% Total revenues 180,300 142,027 38,273 26.9% Costs and expenses: Cost of systems and services revenues 107,513 81,133 26,380 32.5% Cost of hardware revenues 4,658 9,971 (5,313) -53.3% Sales and marketing 34,372 31,399 2,973 9.5% Research and development 26,550 29,273 (2,723) -9.3% General and administrative 10,867 7,576 3,291 43.4% Depreciation and amortization 7,266 6,377 889 13.9% Total costs and expenses 191,226 165,729 25,497 15.4% Loss from operations (10,926) (23,702) 12,776 53.9% Interest income, net 1,280 679 601 88.5% Loss before income taxes (9,646) (23,023) 13,377 58.1% Provision for income taxes -- -- -- Net loss $(9,646) $(23,023) $13,377 58.1% Loss per share: Basic loss per share $(0.20) $(0.50) $0.30 60.0% Diluted loss per share $(0.20) $(0.50) $0.30 60.0% Weighted average shares outstanding: Basic 47,444 46,228 Diluted 47,444 46,228 Eclipsys Corporation Statement of Cash Flow - Unaudited (000’s omitted) Three Months Ended Six Months Ending June 30, June 30, 2005 2004 2005 2004 Operating Activities: Net increase (loss) $(2,485) $(9,960) $(9,646) $(23,023) Adjustments to reconcile net loss to net cash provided by (used in) operating activities Depreciation and Amortization 8,300 6,226 16,106 12,251 Bad debt provision 600 450 1,050 1,000 Loss on sale of marketable securities -- 131 -- 131 Stock Compensation 734 105 1,150 161 Accounts receivable (6,483) (4,986) (1,135) (106) Inventory (108) 21 (28) (1,148) Other current assets 1,107 966 (2,337) 3,139 Other assets (1,095) (459) (9,920) (2,450) Deferred revenue (4,034) 3,027 (1,755) 269 Accrued compensation 2,498 2,525 3,763 (1,508) Other current liabilities 1,938 (1,334) (3,745) (1,001) Other liabilities 727 (5) 1,143 (537) Total adjustments 4,184 6,667 4,292 10,201 Net cash provided by (used in) operating activities 1,699 (3,293) (5,354) (12,822) Investing Activities: Purchase of fixed assets (2,191) (2,777) (6,316) (6,795) Purchase of marketable securities (21,848) (81,115) (159,866) (165,130) Proceed from Sale of Marketable securities 21,554 80,974 122,712 124,181 Capitalized software development costs (3,207) (3,881) (9,634) (8,519) Acquisitions, net of cash (20) -- (20) (2,500) Net cash used in investing activities (5,712) (6,799) (53,124) (58,763) Financing Activities: Exercise of stock options 5,926 497 7,623 2,914 Employee stock purchase plan -- 882 -- 1,664 Accretion -- -- -- -- Net cash provided by financing activities 5,926 1,379 7,623 4,578 Effect of exchange Rate changes on cash and cash equivalents 8 (9) 89 -20 Net increase (decrease) in cash and cash equivalents 1,921 (8,722) (50,766) (67,027) Cash and cash equivalents, beginning of period $69,345 $68,316 $122,031 $151,683 Cash and cash equivalents, end of period 71,265 84,656 71,265 84,656 Marketable Securities 37,154 40,818 37,154 40,818 Total Cash $108,419 $125,474 $108,419 $125,474 Eclipsys Corporation Consolidated Balance Sheets - Unaudited (000’s Omitted) June 30, December 31, 2005 2004 Assets Current assets: Cash and cash equivalents $71,265 $122,031 Marketable securities 37,154 Accounts receivable, net 64,947 64,862 Inventory 1,672 1,644 Other current assets 17,923 15,586 Total current assets 192,961 204,123 Property and equipment, net 34,499 35,002 Capitalized software development costs, net 32,335 29,819 Acquired technology, net 736 886 Goodwill and other intangibles assets 6,248 6,667 Other assets 23,264 14,923 Total assets $290,043 $291,420 Liabilities and Stockholders’ Equity Current liabilities: Deferred revenue $102,083 $106,804 Accrued compensation costs 16,501 12,738 Other current liabilities 28,842 32,587 Total current liabilities 147,426 152,129 Deferred revenue 18,858 15,892 Other long-term liabilities 1,266 122 Stockholders’ equity: 122,493 123,277 Total liabilities and stockholders’ equity $290,043 $291,420
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CONTACT: Media, Michael E. Donner, SVP & Chief Marketing Officer,+1-561-322-4485, or michael.donner@eclipsys.com, or Investors, Robert J.Colletti, SVP & Chief Financial Officer, +1-561-322-4655, orinvestor.relations@eclipsys.com, both of Eclipsys
Web site: http://www.eclipsys.com/
