Exhibit 99.1
Eclipsys Releases Financial Results for Quarter and Year Ended December 31, 2005
— Company Experiences Second Consecutive Profitable Quarter, Ends Year with Positive EPS —
Boca Raton, FL — February 23, 2006 — Eclipsys Corporation® (NASDAQ: ECLP), The Outcomes Company®, today released results for the quarter and year ended December 31, 2005.
The following table summarizes selected financial data:
|
| In thousands, except per share data |
| |||||||||||||||||||
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| ||||||||||||||||||||
|
| Three months ended December 31, |
| Three months ended September 30, |
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| |||||||||||||||||||
|
| 2005 |
| 2004 |
| $ Change |
| % Change |
| 2005 |
| $ Change |
| % Change |
| |||||||
|
|
|
|
|
|
|
|
| ||||||||||||||
Revenues |
| $ | 105,120 |
| $ | 87,233 |
| $ | 17,887 |
|
| 20.5 | % | $ | 97,852 |
| $ | 7,268 |
|
| 7.4 | % |
Basic earnings (loss) per share |
| $ | 0.10 |
| $ | (0.06 | ) | $ | 0.16 |
|
| N/A |
| $ | 0.11 |
| $ | (0.01 | ) |
| -9.1 | % |
Diluted earnings (loss) per share |
| $ | 0.10 |
| $ | (0.06 | ) | $ | 0.16 |
|
| N/A |
| $ | 0.10 |
| $ | 0.00 |
|
| N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year ended December 31, |
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|
|
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| ||||||||||
|
|
|
|
|
|
|
|
|
|
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| |||||||||||
|
| 2005 |
| 2004 |
| $ Change |
| % Change |
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
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| ||||||||
Revenues |
| $ | 383,271 |
| $ | 309,075 |
| $ | 74,196 |
|
| 24.0 | % |
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share |
| $ | 0.01 |
| $ | (0.70 | ) | $ | 0.71 |
|
| N/A |
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share |
| $ | 0.01 |
| $ | (0.70 | ) | $ | 0.71 |
|
| N/A |
|
|
|
|
|
|
|
|
|
|
Fourth-Quarter and Year-End Results
Fourth-quarter 2005 revenues were $105.1 million, compared to revenues of $87.2 million in Q4’04, an increase of $17.9 million or 20.5 percent. Net income for the quarter was $5.0 million, compared to a net loss of $(2.9) million in Q4’04. This represents a $7.9 million improvement. Basic and diluted earnings per share were $0.10, compared to basic and diluted loss per share of $(0.06) in Q4’04.
For the year, revenues were $383.3 million compared to revenues of $309.1 million in 2004, an increase of 24.0 percent. Net income for the year was $485,000, compared to a loss of $(32.6) million in 2004; this represents a $33.1 million improvement over last year. Basic and diluted earnings per share was $0.01, compared to a loss of $(0.70) in 2004, a $0.71 per share improvement over 2004.
Operating cash flows were $14.4 million for the year, compared to $(3.2) million in 2004; this represents a $17.6 million improvement compared to 2004. Cash, cash equivalents and marketable securities were $114.1 million as of December 31, 2005. Days sales outstanding (DSOs) were 69 days, an increase of two days from the prior year. Deferred revenue (including current and long-term) was $124.7 million as of December 31, 2005, compared to $122.7 million as of December 31, 2004.
“Fourth-quarter 2005 was a solid quarter for Eclipsys,” stated Robert J. Colletti, Eclipsys senior vice president and chief financial officer. “We exceeded $100 million in revenues, experienced a significant sequential improvement in sales, and achieved positive EPS for the second consecutive quarter. Having ended the quarter and the year with positive EPS, as we previously guided, we are optimistic that we have passed an inflection point in our business model that positions us well for profitable growth in the future.”
R. Andrew Eckert, Eclipsys president and chief executive officer, said that, “The restructuring initiative we implemented and accounted for in January 2006 was designed to increase the resources focused on client service and support and also contribute to improved financial performance. Our realignment of resources allows us to focus on improving customer satisfaction and enhancing the capacity of our professional services group. We are encouraged by the very positive feedback we have received from our client base regarding these initiatives and the most recent release of our enterprise clinical solution, Sunrise ™ 4.5 XA™.”
1750 Clint Moore Road, Boca Raton, FL 33487 • phone 561.322.4321 • fax 561.322.4320 • info@eclipsys.com
Eclipsys Releases Financial Results for the Quarter and Year-Ended December 31, 2005
February 23, 2006
Page 2 of 2
Investor Teleconference February 23
Eclipsys senior executives will discuss the results during an investor community teleconference scheduled for 8:30 a.m. Eastern time on Thursday, February 23. Persons interested in participating in the teleconference should call (800) 230-1074 approximately 15 minutes before the conference is slated to begin. For listen-only mode, participants should go to www.eclipsys.com prior to the conference call to register and download the necessary audio software. An audio replay will be available at www.eclipsys.com for approximately 48 hours beginning at 12 noon Eastern on February 23.
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 www.eclipsys.com or email info@eclipsys.com.
Statements in this news release or the investor call referenced herein concerning the company’s future financial performance and the benefits provided by Eclipsys software and services are forward-looking statements and actual results may differ from those projected due to a variety of risks and uncertainties. Future performance expectations are predicated upon achievement of various sales and performance targets that may be difficult to meet. The market is highly competitive. Eclipsys has recently released new software that has not yet been widely implemented. Implementation and customization of Eclipsys software is complex and time-consuming. 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, implementation or consulting services. The success and timeliness of the company’s services will depend at least in part upon client involvement, which can be difficult to control. Eclipsys is required to meet specified performance standards, and the contract can be terminated or its scope reduced under certain circumstances. More information about company risks is available in recent Form 10-K 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 Corporation and The Outcomes Company are registered trademarks of Eclipsys Corporation. Other product and company names in this news release are trademarks and/or registered trademarks of their respective companies
Eclipsys |
|
Michael E. Donner | Robert J. Colletti |
Chief Marketing Officer (media) | Chief Financial Officer (investors) |
(561) 322-4485 | (561) 322-4655 |
michael.donner@eclipsys.com | investor.relations@eclipsys.com |
Eclipsys Corporation and subsidiaries
Consolidated Statements of Operations - Unaudited
(000’s Omitted)
|
| Year Ended |
|
|
|
|
|
|
| ||||
|
|
| Change $ |
| Change % |
| |||||||
|
| 2005 |
| 2004 |
|
|
| ||||||
|
|
|
|
|
| ||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems and services |
| $ | 370,309 |
| $ | 282,124 |
| $ | 88,185 |
|
| 31.3 | % |
Hardware |
|
| 12,962 |
|
| 26,951 |
|
| (13,989 | ) |
| -51.9 | % |
|
|
|
|
|
|
|
| ||||||
Total revenues |
|
| 383,271 |
|
| 309,075 |
|
| 74,196 |
|
| 24.0 | % |
|
|
|
|
|
|
|
| ||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of systems and services revenues |
|
| 225,080 |
|
| 168,393 |
|
| 56,687 |
|
| 33.7 | % |
Cost of hardware revenues |
|
| 11,055 |
|
| 22,949 |
|
| (11,894 | ) |
| -51.8 | % |
Sales and marketing |
|
| 64,140 |
|
| 65,024 |
|
| (884 | ) |
| -1.4 | % |
Research and development |
|
| 51,789 |
|
| 58,095 |
|
| (6,306 | ) |
| -10.9 | % |
General and administrative |
|
| 19,191 |
|
| 15,524 |
|
| 3,667 |
|
| 23.6 | % |
Depreciation and amortization |
|
| 14,659 |
|
| 13,284 |
|
| 1,375 |
|
| 10.4 | % |
|
|
|
|
|
|
|
| ||||||
Total costs and expenses |
|
| 385,914 |
|
| 343,269 |
|
| 42,645 |
|
| 12.4 | % |
|
|
|
|
|
|
|
| ||||||
Loss from operations |
|
| (2,643 | ) |
| (34,194 | ) |
| 31,551 |
|
| 92.3 | % |
Interest income, net |
|
| 3,128 |
|
| 1,629 |
|
| 1,499 |
|
| 92.0 | % |
|
|
|
|
|
|
|
| ||||||
Income (Loss) before taxes |
|
| 485 |
|
| (32,565 | ) |
| 33,050 |
|
| 101.5 | % |
Provision for income taxes |
|
| — |
|
| — |
|
| — |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net income (loss) |
| $ | 485 |
| $ | (32,565 | ) | $ | 33,050 |
|
| 101.5 | % |
|
|
|
|
|
|
|
| ||||||
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) per share |
| $ | 0.01 |
| $ | (0.70 | ) | $ | 0.71 |
|
| N/A |
|
|
|
|
|
|
|
|
| ||||||
Diluted (loss) per share |
| $ | 0.01 |
| $ | (0.70 | ) | $ | 0.71 |
|
| N/A |
|
|
|
|
|
|
|
|
| ||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 47,947 |
|
| 46,587 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Diluted |
|
| 50,644 |
|
| 46,587 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eclipsys Corporation and subsidiaries
Consolidated Statements of Operations - Unaudited
(000’s Omitted)
|
| Three Months Ended |
|
|
|
|
|
|
| Three Months Ended |
| |||||||||||
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|
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|
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|
| |||||||||||||
|
| December 31, |
| December 31, |
| Change $ |
| Change % |
| 2005 |
| Change $ |
| Change % |
| |||||||
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|
|
|
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Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Systems and services |
| $ | 100,818 |
| $ | 80,368 |
| $ | 20,450 |
|
| 25.4 | % | $ | 94,806 |
| $ | 6,012 |
|
| 6.3 | % |
Hardware |
|
| 4,302 |
|
| 6,865 |
|
| (2,563 | ) |
| -37.3 | % |
| 3,046 |
|
| 1,256 |
|
| 41.2 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total revenues |
|
| 105,120 |
|
| 87,233 |
|
| 17,887 |
|
| 20.5 | % |
| 97,852 |
|
| 7,268 |
|
| 7.4 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of systems and services revenues |
|
| 59,477 |
|
| 44,371 |
|
| 15,106 |
|
| 34.0 | % |
| 56,776 |
|
| 2,701 |
|
| 4.8 | % |
Cost of hardware revenues |
|
| 3,823 |
|
| 5,667 |
|
| (1,844 | ) |
| -32.5 | % |
| 2,575 |
|
| 1,248 |
|
| 48.5 | % |
Sales and marketing |
|
| 17,004 |
|
| 18,784 |
|
| (1,780 | ) |
| -9.5 | % |
| 14,076 |
|
| 2,928 |
|
| 20.8 | % |
Research and development |
|
| 12,512 |
|
| 13,617 |
|
| (1,105 | ) |
| -8.1 | % |
| 12,726 |
|
| (214 | ) |
| -1.7 | % |
General and administrative |
|
| 4,484 |
|
| 4,668 |
|
| (184 | ) |
| -3.9 | % |
| 3,840 |
|
| 644 |
|
| 16.8 | % |
Depreciation and amortization |
|
| 3,769 |
|
| 3,553 |
|
| 216 |
|
| 6.1 | % |
| 3,625 |
|
| 144 |
|
| 4.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total costs and expenses |
|
| 101,069 |
|
| 90,660 |
|
| 10,409 |
|
| 11.5 | % |
| 93,618 |
|
| 7,451 |
|
| 8.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Income (loss) from operations |
|
| 4,051 |
|
| (3,427 | ) |
| 7,478 |
|
| 218.2 | % |
| 4,234 |
|
| (183 | ) |
| -4.3 | % |
Interest income, net |
|
| 982 |
|
| 536 |
|
| 446 |
|
| 83.2 | % |
| 865 |
|
| 117 |
|
| 13.5 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Income (loss) before income taxes |
|
| 5,033 |
|
| (2,891 | ) |
| 7,924 |
|
| 274.1 | % |
| 5,099 |
|
| (66 | ) |
| -1.3 | % |
Provision for income taxes |
|
| — |
|
| — |
|
| — |
|
|
|
|
| — |
|
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Net income (loss) |
| $ | 5,033 |
| $ | (2,891 | ) | $ | 7,924 |
|
| 274.1 | % | $ | 5,099 |
| $ | (66 | ) |
| -1.3 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share |
| $ | 0.10 |
| $ | (0.06 | ) | $ | 0.16 |
|
| N/A |
| $ | 0.11 |
| $ | (0.01 | ) |
| -9.1 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Diluted earnings (loss) per share |
| $ | 0.10 |
| $ | (0.06 | ) | $ | 0.16 |
|
| N/A |
| $ | 0.10 |
| $ | 0.00 |
|
| 0.0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 48,604 |
|
| 46,937 |
|
|
|
|
|
|
|
| 48,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Diluted |
|
| 51,408 |
|
| 46,937 |
|
|
|
|
|
|
|
| 51,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eclipsys Corporation and subsidiaries
Consolidated Balance Sheets - Unaudited
(000’s Omitted)
|
| December 31, |
| ||||
|
|
| |||||
|
| 2005 |
| 2004 |
| ||
|
|
|
| ||||
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
| $ | 76,693 |
| $ | 122,031 |
|
Marketable securities |
|
| 37,455 |
|
| — |
|
Accounts receivable, net |
|
| 80,833 |
|
| 64,862 |
|
Inventory |
|
| 2,289 |
|
| 1,644 |
|
Prepaid expenses |
|
| 17,909 |
|
| 14,495 |
|
Other current assets |
|
| 2,184 |
|
| 1,091 |
|
|
|
|
| ||||
Total current assets |
|
| 217,363 |
|
| 204,123 |
|
Property and equipment, net |
|
| 40,500 |
|
| 35,002 |
|
Capitalized software development costs, net |
|
| 35,690 |
|
| 29,819 |
|
Acquired technology, net |
|
| 584 |
|
| 886 |
|
Intangible assets, net |
|
| 2,940 |
|
| 3,804 |
|
Goodwill, net |
|
| 6,624 |
|
| 2,863 |
|
Other assets |
|
| 20,964 |
|
| 14,923 |
|
|
|
|
| ||||
Total assets |
| $ | 324,665 |
| $ | 291,420 |
|
|
|
|
| ||||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Deferred revenue |
| $ | 107,960 |
| $ | 106,804 |
|
Accounts payable |
|
| 26,103 |
|
| 21,945 |
|
Accrued compensation costs |
|
| 15,974 |
|
| 12,738 |
|
Other current liabilities |
|
| 10,413 |
|
| 10,642 |
|
|
|
|
| ||||
Total current liabilities |
|
| 160,450 |
|
| 152,129 |
|
Deferred revenue |
|
| 16,772 |
|
| 15,892 |
|
Other long-term liabilities |
|
| 1,252 |
|
| 122 |
|
Stockholders’ equity: |
|
| 146,191 |
|
| 123,277 |
|
|
|
|
| ||||
Total liabilities and stockholders’ equity |
| $ | 324,665 |
| $ | 291,420 |
|
|
|
|
|
Eclipsys Corporation and subsidiaries
Consolidated Statements of Cash Flows - Unaudited
(000’s omitted)
|
| Twelve Months Ended |
| ||||
|
|
| |||||
|
| 2005 |
| 2004 |
| ||
|
|
|
| ||||
Operating Activities: |
|
|
|
|
|
|
|
Net income (loss) |
| $ | 485 |
| $ | (32,565 | ) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |
|
|
|
|
|
|
|
Depreciation and Amortization |
|
| 32,472 |
|
| 27,410 |
|
Loss from Sale of Marketable securities |
|
| — |
|
| 131 |
|
Bad debt provision |
|
| 3,011 |
|
| 1,800 |
|
Stock Compensation Expense |
|
| 2,353 |
|
| 477 |
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
Accounts receivable |
|
| (18,982 | ) |
| (11,520 | ) |
Inventory |
|
| (645 | ) |
| (1,079 | ) |
Other current assets |
|
| (1,092 | ) |
| (28 | ) |
Prepaid Expenses |
|
| (3,415 | ) |
| (506 | ) |
Other assets |
|
| (9,283 | ) |
| (2,724 | ) |
Deferred revenue |
|
| 2,036 |
|
| 21,403 |
|
Accrued compensation |
|
| 2,441 |
|
| (4,486 | ) |
Account Payables |
|
| 6,493 |
|
| 3,637 |
|
Other current liabilities |
|
| (2,563 | ) |
| (4,635 | ) |
Other liabilities |
|
| 1,130 |
|
| (562 | ) |
|
|
|
| ||||
Total adjustments |
|
| 13,956 |
|
| 29,318 |
|
|
|
|
| ||||
Net cash provided by (used in) operating activities |
|
| 14,441 |
|
| (3,247 | ) |
Investing Activities: |
|
|
|
|
|
|
|
Purchase of fixed assets |
|
| (19,288 | ) |
| (15,333 | ) |
Purchase of marketable securities |
|
| (501,717 | ) |
| (164,074 | ) |
Proceeds from sale of marketable securities |
|
| 464,262 |
|
| 163,943 |
|
Capitalized software development costs |
|
| (20,144 | ) |
| (15,194 | ) |
Acquisitions, net of cash |
|
| (312 | ) |
| (5,458 | ) |
|
|
|
| ||||
Net cash used in investing activities |
|
| (77,199 | ) |
| (36,116 | ) |
Financing Activities: |
|
|
|
|
|
|
|
Proceeds from stock options exercised |
|
| 16,853 |
|
| 7,892 |
|
Proceeds from issuance of common stock in stock purchase plan |
|
| 195 |
|
| 1,664 |
|
|
|
|
| ||||
Net cash provided by financing activities |
|
| 17,048 |
|
| 9,556 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
| 372 |
|
| 155 |
|
|
|
|
| ||||
Net decrease in cash and cash equivalents |
| $ | (45,338 | ) | $ | (29,652 | ) |
|
|
|
| ||||
Cash and cash equivalents, beginning of period |
|
| 122,031 |
|
| 151,683 |
|
Cash and cash equivalents, end of period |
|
| 76,693 |
|
| 122,031 |
|
Marketable securities |
|
| 37,455 |
|
| — |
|
|
|
|
| ||||
Total Cash |
| $ | 114,148 |
| $ | 122,031 |
|
|
|
|
|