EXHIBIT 99.3
Updated 2004 Financial Guidance
Table presented in millions, except per share data
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| | | Q3 | | Q4 | | Full Year 2004 | | | | | | Full Year 2004 |
| | | (excluding ViPS)
| | (excluding ViPS)
| | (excluding ViPS)
| | ViPS (2)
| | (including ViPS)
|
| Revenues | | $ | 290 - $295 | | | $ | 300 - $305 | | | $ | 1,145 - $1,155 | | | $ | 22 - $24 | | | $ | 1,167 - $1,179 | |
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| Income before taxes, non-cash and other items | | $ | 34 - $35 | | | $ | 40 - $43 | | | $ | 132 - $136 | | | $ | 5 | | | $ | 137 - $141 | |
| Depreciation and amortization | | | 14 | | | | 14 | | | | 54 | | | | 4 | | | | 58 | |
| Non-cash content and stock compensation | | | 6 | | | | 6 | | | | 28 | | | | — | | | | 28 | |
| Legal expense (1) | | | — | | | | — | | | | 4 | | | | — | | | | 4 | |
| Income tax provision | | | 2 | | | | 2 | | | | 5 | | | | — | | | | 5 | |
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| Net income | | $ | 12 - $13 | | | $ | 18 - $21 | | | $ | 41 - $45 | | | $ | 1 | | | $ | 42 - $46 | |
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| Earnings per share: | | | | | | | | | | | | | | | | | | | | |
| Income before taxes, non-cash and other items | | $ | 0.10 | | | $ | 0.12 - $0.13 | | | $ | 0.39 - $0.40 | | | $ | 0.02 | | | $ | 0.41 - $0.42 | |
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| Net income | | $ | 0.04 | | | $ | 0.05 - $0.06 | | | $ | 0.12 - $0.13 | | | | — | | | $ | 0.12 - $0.13 | |
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| (1) | | Legal expense reflects actual results for the six months ended June 30, 2004; no guidance has been provided for Q3 or Q4 |
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| (2) | | Reflects the operating results of ViPS since the date of acquisition; estimated to be mid-August |
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Segment Information (excluding ViPS):
| • | | Envoy – expected to represent approximately 57% of consolidated revenues for the balance of the year; with operating margins of approximately 16% in Q3 and 18% in Q4. |
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| • | | Practice Services — expected to represent approximately 26% of consolidated revenues for the balance of the year; with operating margins that are anticipated to improve to 6% in Q3 and 8% in Q4. |
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| • | | Health — expected to represent approximately 13% of consolidated revenues for the balance of the year; with operating margins increasing to the high 20% range. |
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| • | | Porex — expected to represent approximately 7% of consolidated revenues for the balance of the year; with operating margins of approximately 25-30%. |
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| • | | Inter-segment eliminations should be approximately 3% of net revenues for the balance of the year. |
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| • | | Corporate expenses should be approximately 5% of net revenues for the balance of the year. |
