35 Basis of Presentation Basis of Presentation The Company's GAAP results for the three and six months ended November 30, 2009 include results of Allscripts for each such period. The Company's GAAP results for the three and six months ended November 30, 2008 include the results of Misys Healthcare (Misys) for each period and the results of Allscripts subsequent to a merger effected on October 10, 2008, at which time the Company's legal name was changed to Allscripts-Misys Healthcare Solutions, Inc.
Footnotes 1. Non-GAAP revenue for the three months ended November 30, 2009 and 2008, respectively, are comprised of revenue from Allscripts and Misys for the full three month period of each respective year, giving effect to the add-back of a deferred revenue adjustment of $1.4 million recorded for GAAP purposes in the three month period ended November 30, 2009 and $2.1 million for the same period last year. In addition, non-GAAP revenue for the three months ended November 30, 2008 excludes $4.7 million in prepackaged medications revenue that were recorded for GAAP purposes. Allscripts disposed of its prepackaged medications business on March 16, 2009. Non-GAAP revenue for the six months ended November 30, 2009 and 2008, respectively, are comprised of revenue from Allscripts and Misys for the full six month period of each respective year, giving effect to the add-back of a deferred revenue adjustment of $4.0 million recorded for GAAP purposes in the six month period ended November 30, 2009 and $2.1 million for the same period last year. In addition, non-GAAP revenue for the six months ended November 30, 2008 excludes $4.7 million in prepackaged medications revenue that were recorded for GAAP purposes. 2. Non-GAAP gross margin for the three months ended November 30, 2009 and 2008, respectively, are comprised of gross profit from Allscripts and Misys for the full three month period of each respective year, giving effect to the add-back of a deferred revenue adjustment of $1.4 million recorded for GAAP purposes in the three month period ended November 30, 2009 and $2.1 million for the same period last year. In addition, non-GAAP gross margin for the three months ended November 30, 2008 excludes $0.8 million in prepackaged medications gross profit that were recorded for GAAP purposes. Non-GAAP gross margin for the six months ended November 30, 2009 and 2008, respectively, are comprised of gross profit from Allscripts and Misys for the full six month period of each respective year, giving effect to the add-back of a deferred revenue adjustment of $4.0 million recorded for GAAP purposes in the six month period ended November 30, 2009 and $2.1 million for the same period last year. In addition, non-GAAP gross margin for six months ended November 30, 2008 excludes $0.8 million in prepackaged medications gross profit that were recorded for GAAP purposes. 3. Non-GAAP net income for the three months ended November 30, 2009 and 2008, respectively, are comprised of net income from Allscripts and Misys for the full three month period of each respective year, giving effect to the add-back of acquisition-related amortization of $3.5 million and $2.8 million, respectively, net of tax; stock-based compensation expense of $2.7 million and $0.6 million, respectively, net of tax; transaction-related expenses of $0.8 million and $13.4 million, respectively, net of tax; and a deferred revenue adjustment of $0.9 million and $1.2 million, respectively, net of tax. Non-GAAP net income also eliminates prepackaged medications net income of $0.2 million, net of tax, for the three months ended November 30, 2008 and adds-back a tax adjustment of $0.3 million for the three months ended November 30, 2009. Non-GAAP net income for the six months ended November 30, 2009 and 2008, respectively, are comprised of net income from Allscripts and Misys for the full six month period of each respective year, giving effect to the add-back of acquisition-related amortization of $6.9 million and $5.2 million, respectively, net of tax; stock-based compensation expense of $4.7 million and $2.1 million, respectively, net of tax; transaction-related expenses of $3.2 million and $17.6 million, respectively, net of tax; and a deferred revenue adjustment of $2.5 million and $1.2 million, respectively, net of tax. Non-GAAP net income also eliminates prepackaged medications net income of $0.7 million, net of tax, for the six months ended November 30, 2008 and adds-back a tax adjustment of $0.1 million for the six months ended November 30, 2009. 4.Non-GAAP adjustments are effected for tax at the actual as-reported effective tax rate for all fiscal 2009 periods presented. Non-GAAP adjustments are effected for tax at the anticipated full-year effective tax rate for all fiscal 2010 periods presented. 5. Please see next page for a further discussion of non-GAAP measures. Supplemental and non-GAAP financial information is also available at http://investor.allscripts.com. |