Veradigm (MDRX) 8-K Regulation FD Disclosure

1

Allscripts Investor

Presentation

JANUARY 2012

J.P.

Morgan

30

th

Annual

Healthcare

Conference

Exhibit 99.1

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2

Forward Looking Statement

This

presentation

contains

forward-looking

statements

within

the

meaning

of

the

federal

securities

laws.

Statements

regarding

future

events

or

developments,

our

future

performance,

as

well

as

management's

expectations,

beliefs,

intentions,

plans,

estimates

or

projections

relating

to

the

future

are

forward-looking

statements

within

the

meaning

of

these

laws.

These

forward-looking

statements

are

subject

to

a

number

of

risks

and

uncertainties,

some

of

which

are

outlined

below.

As

a

result,

no

assurances

can

be

given

that

any

of

the

events

anticipated

by

the

forward-looking

statements

will

transpire

or

occur,

or

if

any

of

them

do

so,

what

impact

they

will

have

on

our

results

of

operations

or

financial

condition.

Such

risks,

uncertainties

and

other

factors

include,

among

other

things:

the

risk

that

we

will

not

achieve

the

strategic

benefits

of

the

merger

(the

“Eclipsys

Merger”)

with

Eclipsys

Corporation

(“Eclipsys”);

the

possibility

that

the

expected

synergies

and

cost

savings

of

the

Eclipsys

Merger

will

not

be

realized,

or

will

not

be

realized

within

the

expected

time

period;

the

risk

that

our

business

will

not

be

integrated

successfully

with

the

business

of

Eclipsys;

disruption

from

the

Eclipsys

Merger

and

related

transactions

making

it

more

difficult

to

maintain

business

relationships

with

customers,

partners

and

others;

unexpected

requirements

to

achieve

interoperability

certification

pursuant

to

the

Health

Information

Technology

for

Economic

and

Clinical

Health

Act,

with

resulting

increases

in

development

and

other

costs

for

us;

the

volume

and

timing

of

systems

sales

and

installations,

the

length

of

sales

cycles

and

the

installation

process

and

the

possibility

that

our

products

will

not

achieve

or

sustain

market

acceptance;

the

timing,

cost

and

success

or

failure

of

new

product

and

service

introductions,

development

and

product

upgrade

releases;

competitive

pressures

including

product

offerings,

pricing

and

promotional

activities;

errors

or

similar

problems

in

our

software

products;

the

outcome

of

any

legal

proceeding

that

has

been

or

may

be

instituted

against

us

and

others;

compliance

obligations

under

existing

laws,

regulations

and

industry

initiatives

and

future

changes

in

laws

or

regulations

in

the

healthcare

industry,

including

possible

regulation

of

our

software

by

the

U.S.

Food

and

Drug

Administration;

the

possibility

of

product-related

liabilities;

our

ability

to

attract

and

retain

qualified

personnel;

the

implementation

and

speed

of

acceptance

of

the

electronic

record

provisions

of

the

American

Recovery

and

Reinvestment

Act

of

2009,

as

well

as

elements

of

the

Patient

Protection

and

Affordable

Care

Act

(aka

health

reform)

which

pertains

to

health

IT

adoption;

maintaining

our

intellectual

property

rights

and

litigation

involving

intellectual

property

rights;

legislative,

regulatory

and

economic

developments;

risks

related

to

third-party

suppliers

and

our

ability

to

obtain,

use

or

successfully

integrate

third-party

licensed

technology

and

breach

of

our

security

by

third

parties.

See

our

Transition

Report

on

Form

10-KT

for

the

seven

months

ended

December

31,

2010

and

our

subsequent

filings

with

the

SEC

for

a

further

discussion

of

these

and

other

risks

and

uncertainties

applicable

to

our

business.

The

statements

herein

speak

only

as

of

their

date

and

we

undertake

no

duty

to

update

any

forward-looking

statement

whether

as

a

result

of

new

information,

future

events

or

changes

in

expectations.

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A Connected Community

of Health

™

OUR VISION

Allscripts is the leading provider

of Electronic Health Record (EHR),

practice management and other

clinical, revenue cycle, connectivity

and information solutions for

physicians, hospitals & post-acute

organizations

3

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OUR CLIENTS

•

180,000 Physicians

•

50,000 Physician Practices

•

1,500 Hospitals

•

10,000 Post-acute Facilities

•

27,000 Clinicians In Patients

Homes Every Day

OUR COMPANY

•

~$1.3BB 2010 Non-GAAP

Revenue

•

6,000 Employees

•

$160MM in R&D & Growing

•

Leader in Innovation

•

~$3.5BB Market Capitalization

•

1 Complete Set of Solutions

Allscripts: Who We Are

4

Please see the Non-GAAP reconciliation and related  footnotes in the appendix to this presentation.

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5

Investment Highlights

MARKET LEADER

•

Diverse, industry leading client base

COMPLETE PRODUCT

PORTFOLIO

•

Flexible, modern and complete solutions

•

Maximizes opportunities to expand market and wallet share

DYNAMIC GROWTH

MARKET

•

$30BB Federal stimulus program drives healthcare IT adoption

•

Low penetration of clinical solutions

•

Shift to value-based care drives strong long-term secular demand trends

SIGNIFICANT

OPERATING LEVERAGE

•

Proven and scalable platform for sales growth

•

Legacy of product innovation

•

Industry-leading brand awareness

HIGH QUALITY

FINANCIAL MODEL

•

Exceptional visibility with $2.7BB revenue backlog

•

~66% recurring revenue

•

Strong free cash flow

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Agenda

6

MARKET

DIFFERENTIATION

GROWTH

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MARKET

DIFFERENTIATION

GROWTH

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A National

Problem

A Market

that is Ready

A Significant

Opportunity

•

Quality Issues

•

Medical Errors /

Safety Concerns

•

Rising Cost

•

Significant Waste

•

$43BB

1

Opportunity

•

$30BB in Stimulus

Funding

•

~35% Penetration

in Physician

Practices

•

Rise in Employed

Physicians

•

Hospitals Driving

Adoption

•

We are at the

beginning

of what

we expect will be

the single fastest

transformation of

any industry in US

history

8

Market: The Time is NOW

1. McKinsey & Company

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Market: Unsustainable Trend Requiring Change

9

VOLUME

•

Fragmented providers

and payments

•

No uniform quality

•

Fees for volume

•

Demand increasing

VALUE

•

Collaboration,

connectivity

•

Clinical, financial data,

analysis

•

Optimize outcomes

•

Accountable care

Source: HFMA “Value in Healthcare: Current State & Future Directions June 2011

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Market:

MDRX

Addresses

the

Entire

Market

Opportunity

10

Acute/Ambulatory EHR Opportunity 2010-2014 = ~$43BB

•

Ambulatory

Stand-Alone

Opportunity

•

Acute

Stand-Alone

Opportunity

STAND-ALONE

MARKET

INTEGRATED

MARKET

•

Integrated/Complete

Solution Across

Hospitals and

Physician Practices

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Market: Significant Ambulatory Potential

PRACTICE SIZE

TOTAL # OF PRACTICES

EHR PENETRATION (July ‘11)

1-3 Physicians

~186,000

~30%

4-9 Physicians

~28,000

~50%

10-25 Physicians

~6,900

~70%

26+ Physicians

~1,750

~85%

Total

226,650

~35%

Source: SK&A Information Services

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HOSPITALS/HEALTH SYSTEMS

Market: Acute Care Growth Drivers

12

Source: HIMSS Analytics EMR Adoption Model, July 2011

LEGACY

REPLACEMENT

CYCLE

UNDER-

UTILIZATION

•

Obsolete mainframe systems

•

Integrate acute/ambulatory

systems

•

Care Coordination

•

Only ~20%* of Hospitals at

HIMSS Stage 4 adoption or higher

•

Only 1%* at HIMSS Stage 7

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MARKET

DIFFERENTIATION

GROWTH

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Differentiation: Leading Footprint Across the Market

14

(48% Rev)

1 of 3

MDs

1 of 3

Hospitals

(43% Rev)

10,000

Post-acute

Care Providers

(9% Rev)

Source: Allscripts Form 10Q Quarterly Report for period ended 9/30/11.  GAAP revenue percentage based on 9 month period.

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Differentiation: Open and Connected Portfolio

15

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Differentiation: The Challenge to Deliver Meaningful Care

16

•

Stage

1:

Application

•

Stage

2:

Connection

•

Stage

3:

Information

•

Stage

4:

Insights

•

Stage

5:

Outcomes

TIME

LEVEL OF

IMPACT

(Quality, Cost)

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Differentiation: The New Architecture of Healthcare

17

Old World

(Monolithic/Closed

Mainframe)

New World

(Modern/Open Platform)

Connect Inside

Connect Inside and Outside

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•

Key stakeholders across

the community (Allscripts

Referral Network,

Allscripts Community)

•

All points of care and

all applications within

their organization

18

Differentiation: Allscripts Approach

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“Clinical outcomes is the name of the game

in ACOs. This is an area where we believe

Allscripts holds a market lead, and needs

to continue to focus on delivering more

integrated outcomes modules for its

client base.”

THE ADVISORY BOARD COMPANY (APRIL 2011, “A PERSPECTIVE ON THE COMPANY”)

Differentiation: Clinical Outcomes Experience and Focus

19

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Differentiation: i20-Insights to Outcomes

Market values information, delivered to physicians leading to Better Results . . .

Better Outcomes . . . Insights to Outcomes

ALLSCRIPTS

OPTIMALLY

POSITIONED

•

Largest client footprint

•

Technology to connect

•

The analytics to deliver

information at the point

of care

THIS SHOWS IN

ALLSCRIPTS CLIENT

RESULTS . . .

•

Most utilization

•

Most innovation

•

Best outcomes

Differentiation: Deliver Solutions in a Value-Based

Care Environment

21

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Differentiation: Innovative Solutions

22

Mobile Platforms

Accelerate Adoption

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MARKET

DIFFERENTIATION

GROWTH

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Growth: Long-Term Focus

24

1. 2011 revenue guidance provided by Allscripts on November 3, 2011. This document does not subsequently update or reaffirm Allscripts financial guidance.

2. Annual revenue for Allscripts illustrated above is based on a

GAAP presentation and is calenderized based on quarterly results. Please note Allscripts changed its fiscal year-end

to May between the period of September, 2008 and May, 2010. GAAP

revenue also includes the impact of acquisitions and divestitures.

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Growth: Historical Performance

25

Note: Please see the Non-GAAP reconciliation and related footnotes in the appendix to this presentation. tp://investor.allscripts.com

•

Non-GAAP

Revenue

CY 2010:

$1,300MM

•

Non-GAAP

Revenue

CY 2009:

$1,188MM

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Growth: Distribution Outpaces the Competition

26

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Growth: Significant Cost Synergies

27

Projected Cost Synergies Over Three Years

•

Duplicative management

structure

•

Duplicative public company

costs

•

Duplicative back-end office

and system integration

•

Marketing

Key Cost

Synergy Drivers

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Growth: Significant Client Sales Opportunity

28

Sell Acute

Solutions to

Ambulatory

Care Base

Sell

Ambulatory 

Solutions to

Acute Care

Base

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Growth: Utilizing Strong Cash Flow to Enhance Value

29

CAPITALIZATION

ACTUAL

9/30/2011

Cash and Marketable Securities

$87

Revolver ($250mm)

0

Term Loan

377

Total Debt

$377

Equity

1,439

Total Capitalization

$1,816

Credit Statistics

LTM EBITDA

(1)

$328

Total Debt / LTM EBITDA

(1)

1.1x

Debt / Capitalization

20.8%

•

Reduced debt by $193MM since

merger closed (8/10); $45.5MM in

Q3 2011

•

Minimum required principal payments

over next 12 months totals $40MM

•

Current borrowing cost <3%

•

$200MM, 3-year share repurchase

program instituted in the second

quarter of 2011

•

Repurchased $50MM of shares to

date

1

EBITDA is calculated as net income plus income tax expense, interest expense, stock-based compensation expense, depreciation & amortization, deferred revenue

adjustments, certain one-time and transaction-related expenses, and non-recurring losses on the sale of investments minus non-recurring gains on the sale of assets, consistent

with the calculation as defined in the Company’s Senior Credit Facilities agreement. 

Note: Please see the Non-GAAP reconciliation and related  footnotes in the appendix to this presentation.  tp://investor.allscripts.com

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Growth: Non-GAAP Financial Outlook

CY 2010 ACTUAL

CY 2011

2010 TO 2011

CHANGE

NON-GAAP

REVENUE

$1,300

$1,455 -

$1,460

12%

NON-GAAP

OPERATING MARGIN

19%

21%

+200 BPS

NON-GAAP

NET INCOME

$148

$174 -

$179

17 –

21%

NON-GAAP

DILUTED EPS

$0.76

$0.91 -

$0.93

20 –

22%

($ in millions; except per share amounts)

Note:  Guidance provided by the company in a press release on November 3, 2011. This presentation does not subsequently update or reaffirm Allscripts financial

guidance.  Please see the Non-GAAP reconciliation and related  footnotes in the appendix to this presentation. tp://investor.allscripts.com

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MARKET

DIFFERENTIATION

GROWTH

In Summary….

32

Allscripts Investor

Presentation

JANUARY 2012

J.P. Morgan 30

th

Annual Healthcare Conference

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Appendix: Non-GAAP Reconciliations

33

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Appendix: Non-GAAP Reconciliation

•

GAAP –

non-GAAP revenue and net income reconciliation for the twelve months

ended

December 31, 2010.

Three Months

Ended

Twelve Months

Ended

12/31/2010

12/31/2010

Allscripts

Eclipsys

Q1 2010

Allscripts

Eclipsys

Q2 2010

Allscripts

Eclipsys

Additional

Int Exp(a)

Q3 2010

Q4 2010

CY 2010

Total revenue, as reported

$184.4

$128.4

$312.8

$191.4

$134.4

$325.8

$191.2

$51.2

$0.0

$242.4

$316.2

$1,197.2

     Deferred revenue adjustment

0.5

0.0

0.5

0.6

0.0

0.6

0.5

6.7

0.0

7.2

20.9

29.2

     Eclipsys results pre-merger period (7/1/10-8/23/10)

0.0

0.0

0.0

0.0

0.0

0.0

0.0

79.5

0.0

79.5

0.0

79.5

Total non-GAAP revenue

$184.9

$128.4

$313.3

$192.0

$134.4

$326.4

$191.7

$137.4

$0.0

$329.1

$337.1

$1,305.9

Net income, as reported

$18.6

$5.4

$24.0

$13.1

$1.6

$14.7

$5.4

($4.0)

$0.0

$1.4

($6.2)

$33.9

     Deferred revenue adjustment

0.3

0.0

0.3

0.3

0.0

0.3

0.3

4.0

0.0

4.3

12.7

17.6

     Acquisition-related amortization

3.4

1.9

5.3

3.5

1.8

5.3

3.4

3.0

0.0

6.4

10.6

27.6

     Stock-based compensation expense

2.4

3.4

5.8

1.8

2.9

4.7

4.0

0.0

0.0

4.0

2.3

16.8

     Transaction-related expense

0.1

0.0

0.1

7.7

2.0

9.7

16.0

5.5

(1.9)

19.6

10.9

40.3

     ARS Sales

0.0

0.0

0.0

0.0

0.9

0.9

0.0

0.0

0.0

0.0

0.0

0.9

     Tax rate alignment

0.7

0.0

0.7

(0.2)

0.0

(0.2)

(1.6)

(0.2)

0.0

(1.8)

8.4

7.1

     Eclipsys results pre-merger period (7/1/10-8/23/10)

0.0

0.0

0.0

0.0

0.0

0.0

0.0

2.9

0.0

2.9

0.0

2.9

Non-GAAP net income

$25.5

$10.7

$36.2

$26.2

$9.2

$35.4

$27.5

$11.2

($1.9)

$36.8

$38.7

$147.1

(a) Transaction-related expenses are fees and expenses, including legal, investment banking and accounting fees and other

integration-related expenses, incurred in connection with announced transactions.

3/31/10

6/30/10

9/30/2010

Allscripts Healthcare Solutions, Inc.

Non-GAAP Financial Information - 2010  Financial Information

(In millions, except per-share amounts)

(unaudited)

Three Months Ended

Three Months Ended

Three Months Ended

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Appendix: Non-GAAP Reconciliation

•

GAAP –

non-GAAP revenue reconciliation for the twelve months ended November

30,

2009 (Allscripts) and twelve months ended December 31, 2009 (Eclipsys).

Allscripts

(11/30/2009)

Eclipsys

(12/31/2009)

Non-GAAP

Total revenue, as reported

$661.1

$519.1

$1,180.2

     Deferred revenue adjustment

9.7

8.0

$17.7

     Elimination of prepackaged medications

(9.7)

0.0

($9.7)

Total non-GAAP revenue

$661.1

$527.1

$1,188.2

Twelve Months Ended

Allscripts Healthcare Solutions, Inc.

Condensed Non-GAAP Financial Information

(In millions, except per-share amounts)

(Unaudited)

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Appendix: Non-GAAP Reconciliation

•

GAAP –

non-GAAP operating income reconciliation by quarter and twelve months

ended December 31, 2009 (Eclipsys) and November 30, 2009 (Allscripts).

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Appendix: Non-GAAP Reconciliation

•

GAAP –

non-GAAP operating income reconciliation by quarter and twelve months

ended December 31, 2010.

Three Months

Ended

Twelve Months

Ended

12/31/2010

12/31/2010

Allscripts

Eclipsys

Q1 2010

Allscripts

Eclipsys

Q2 2010

Allscripts

Eclipsys

Additional

Int Exp(a)

Q3 2010

Q4 2010

CY 2010

Operating income, as reported

$32.0

$10.7

$42.7

$20.5

$5.4

$25.9

$6.0

($7.2)

$0.0

($1.2)

$9.5

$76.9

     Deferred revenue adjustment

0.5

0.0

0.5

0.6

0.0

0.6

0.5

6.7

0.0

7.2

20.9

29.2

     Acquisition-related amortization

5.6

3.1

8.7

5.6

3.1

8.7

5.6

4.9

0.0

10.5

17.4

45.3

     Stock-based compensation expense

3.9

3.7

7.6

2.9

3.7

6.6

6.6

0.0

0.0

6.6

3.7

24.5

     Transaction-related expense (a)

0.2

0.0

0.2

12.5

3.5

16.0

26.1

9.1

0.0

35.2

17.8

69.2

     Eclipsys results pre-merger period (7/1/10-8/23/10)

0.0

0.0

0.0

0.0

0.0

0.0

0.0

4.7

0.0

4.7

0.0

4.7

Total non-GAAP operating income

$42.2

$17.5

$59.7

$42.1

$15.7

$57.8

$44.8

$18.2

$0.0

$63.0

$69.3

$249.8

Allscripts Healthcare Solutions, Inc.

Non-GAAP Financial Information - 2010  Financial Information

(In millions, except per-share amounts)

(unaudited)

Three Months Ended

Three Months Ended

Three Months Ended

(a) Transaction-related expenses are fees and expenses, including legal, investment banking and accounting fees and

other integration-related expenses, incurred in connection with announced transactions.

3/31/10

6/30/10

9/30/2010

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Appendix: Non-GAAP Reconciliation

•

GAAP –

non-GAAP operating income and margin reconciliation for the three and nine

months ended September 30, 2011 and 2010.

9/30/11

9/30/10

9/30/11

9/30/10

Total revenue, as reported

$368.8

$242.4

$1,060.9

$618.2

Deferred revenue adjustment

2.6

7.2

20.1

8.3

Eclipsys results pre-merger period

0.0

79.5

0.0

342.3

Total non-GAAP revenue

$371.4

$329.1

$1,081.0

$968.8

Operating income (loss), as reported

$37.4

($1.2)

$94.0

51.4

Deferred revenue adjustment

2.6

7.2

20.1

8.3

Acquisition-related amortization

16.6

10.5

49.9

27.9

Stock-based compensation expense

9.9

6.6

25.8

20.8

Transaction-related expense (a)

8.8

35.2

32.1

51.4

Eclipsys results pre-merger period

0.0

4.7

0.0

20.7

Total non-GAAP operating income

$75.3

$63.0

$221.9

$180.5

Total non-GAAP operating income as a

percentage of non-GAAP revenue

20.3%

19.1%

20.5%

18.6%

(a) Transaction-related expenses are fees and expenses, including legal, investment

banking and accounting fees and other integration-related expenses, incurred in

connection with announced transactions.

Allscripts Healthcare Solutions, Inc.

Condensed Non-GAAP Financial Information

(Unaudited)

Three Months

Ended

Three Months

Ended

Nine Months

Ended

Nine Months

Ended

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Appendix: Non-GAAP Reconciliation

•

GAAP

–

non-GAAP

EBITDA

reconciliation

for

the

12

months

ended

September

30,

2011

EBITDA Calculation ($ in thousands)

Combined Results for

Allscripts and Eclipsys for the

12 months ended 9/30/11

Net income, as reported

$43.3

Taxes

38.8

Stock-based compensation expense

37.3

Depreciation and Amortization

121.0

Interest expense

23.3

Transaction-related expenses

23.3

Deferred revenue adjustment

41.0

Gain on Sale of Assets

(0.3)

Earnings before interest, taxes, depreciation and amortization

$327.5

Allscripts Healthcare Solutions, Inc.

Condensed Non-GAAP Financial Information

(In millions, except per-share amounts)

(Unaudited)

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Footnotes Regarding Financial Guidance

Financial guidance was last provided by the company in a press release on November 3, 2011. This presentation does not subsequently

update or reaffirm Allscripts financial guidance.

Allscripts non-GAAP guidance for calendar 2011 assumes the following adjustment

to approximately $1,458.0 million in GAAP

revenue: approximately $21.0 million, pre-tax for an acquisition-related deferred revenue adjustment. Non-GAAP guidance for

calendar 2011 assumes the following adjustments to GAAP operating and net income: approximately $66.5 million of acquisition-

related amortization; approximately $36.0 million in stock-based compensation expense; and approximately $21.0 million in deferred

revenue, all on a pre-tax basis. Allscripts 2011 non-GAAP net income and diluted earnings per share guidance assumes a 37.5-38.0

percent tax rate.

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Explanation of Non-GAAP Financial Measures

Allscripts

reports

its

financial

results

in

accordance

with

generally

accepted

accounting

principles,

or

GAAP.

To

supplement

this

information,

Allscripts

presents

in

this

press

release

total

non-GAAP

revenue,

gross

profit,

operating

income

and

net

income,

including

non-GAAP

net

income

on

a

per

share

basis,

which

are

non-GAAP

financial

measures

under

Section

101

of

Regulation

G

under

the

Securities

Exchange

Act

of

1934,

as

amended.

Total

non-GAAP

revenue

consists

of

GAAP

revenue

as

reported

and

Eclipsys

revenue

for

periods

prior

to

the

August

24,

2010

consummation

of

the

2010

merger

with

Eclipsys

(2010

Merger)

and

adds

back

the

acquisition-related

deferred

revenue

adjustment

booked

for

GAAP

purposes.

Total

non-GAAP

gross

profit

consists

of

GAAP

gross

profit

as

reported

and

Eclipsys

gross

profit

for

periods

prior

to

the

consummation

of

the

2010

Merger

and

adds

back

the

acquisition-related

deferred

revenue

adjustment

booked

for

GAAP

purposes.

Total

non-GAAP

operating

income

consists

of

GAAP

operating

income

as

reported

and

Eclipsys

operating

income

for

periods

prior

to

the

consummation

of

the

2010

Merger

and

adds

back

the

acquisition-related

deferred

revenue

adjustment

booked

for

GAAP

purposes

and

excludes

acquisition-related

amortization,

stock-based

compensation

expense

and

transaction-related

expenses.

Non-GAAP

net

income

consists

of

GAAP

net

income

as

reported

and

includes

Eclipsys

net

income

for

periods

prior

to

the

consummation

of

the

2010

Merger,

excludes

acquisition-related

amortization,

stock-based

compensation

expense

and

transaction-related

expenses,

adds

back

the

acquisition-related

deferred

revenue,

in

each

case

net

of

any

related

tax

effects.

Non-GAAP

net

income

also

includes

a

tax

rate

alignment

adjustment.

Management

also

believes

that

non-GAAP

revenue,

gross

profit,

operating

income

and

net

income

and

non-GAAP

net

income

on

a

per

share

basis

provide

useful

supplemental

information

to

management

and

investors

regarding

the

underlying

performance

of

the

Company's

business

operations

and

facilitates

comparisons

of

the

separate

2010

pre-merger

results

of

legacy

Allscripts

and

legacy

Eclipsys

to

that

of

the

Company's

2010

post-

merger

results.

Acquisition

accounting

adjustments

made

in

accordance

with

GAAP

can

make

it

difficult

to

make

meaningful

comparisons

of

the

underlying

operations

of

the

business

without

considering

the

non-GAAP

adjustments

that

we

have

provided

and

discussed

herein.

Management

also

uses

this

information

internally

for

forecasting

and

budgeting

as

it

believes

that

the

measure

is

indicative

of

the

Company's

core

operating

results.

In

addition,

the

Company

uses

non-GAAP

revenue,

operating

income

and/or

net

income

to

measure

achievement

under

the

Company's

stock

and

cash

incentive

compensation

plans.

Note,

however,

that

non-GAAP

revenue,

gross

profit,

operating

income

and

net

income

and

non-GAAP

net

income

on

a

per

share

basis

are

performance

measures

only,

and

they

do

not

provide

any

measure

of

the

Company's

cash

flow

or

liquidity.

Non-GAAP

financial

measures

are

not

in

accordance

with,

or

an

alternative

for,

measures

of

financial

performance

prepared

in

accordance

with

GAAP

and

may

be

different

from

non-GAAP

measures

used

by

other

companies.

Non-GAAP

measures

have

limitations

in

that

they

do

not

reflect

all

of

the

amounts

associated

with

Allscripts

results

of

operations

as

determined

in

accordance

with

GAAP.

Investors

and

potential

investors

are

encouraged

to

review

the

reconciliation

of

non-GAAP

financial

measures

with

GAAP

financial

measures

contained

within

the

attached

condensed

consolidated

financial

statements.