Exhibit 99.1
CONTACT:
Margo Happer
Director - Investor Relations and
Corporate Communications
+1-802-859-6169
IDX SYSTEMS CORPORATION REPORTS
2004 SECOND QUARTER RESULTS
Strong Revenues Fueled by Domestic and International Growth
BURLINGTON, Vt., July 29 -- IDX Systems Corporation (Nasdaq: IDXC) reported
results today for the second quarter ended June 30, 2004.
Revenues for the second quarter ended June 30, 2004 increased to $130.4
million compared with $98.3 million for the second quarter of 2003. Revenues for
the six-month period ended June 30, 2004 increased to $232.9 million compared
with revenues of $190.7 million for the same period in 2003.
Net income from continuing operations for the second quarter 2004 was $8.1
million, or $0.26 per diluted share, compared with net income from continuing
operations of $5.4 million, or $0.18 per diluted share, in the same period last
year.
For the six-month period ended June 30, 2004, IDX reported net income from
continuing operations of $9.7 million, or $0.31 per diluted share, compared with
net income from continuing operations of $9.1 million, or $0.31 per diluted
share, in the same period last year.
As previously projected, 2004 results reflect startup costs associated with
the company's business in the United Kingdom.
"Revenues were strong in the quarter, fueled by international and domestic
growth. We believe our broad domain expertise, based on 35 years of working with
prestigious healthcare organizations, coupled with our advanced technologies,
position us for accelerated growth in the global healthcare environment," said
James H. Crook Jr., Chief Executive Officer of IDX. "We signed agreements that
represent expanded partnerships with existing customers and generated
significant new business grounded in our vision of making a difference in
healthcare."
MOMENTUM CONTINUES ACROSS IDX BUSINESS LINES
Separately today, IDX announced the following noteworthy contracts signed in
the second quarter.
New agreements for IDX Flowcast(TM) included Metropolitan Health Plan (MHP),
of Hennepin County, MN, a health maintenance organization that serves a
seven-county region. MHP has utilized the IDX managed care application for more
than 10 years. IDX alliance partner Allscripts Healthcare Solutions was selected
as MHP's clinical solution. Additionally, Drexel University Physicians(TM), the
physician's group of the Drexel Univeristy College of Medicine, of Philadelphia,
PA selected IDX Flowcast 3.0. The 320-provider physician group also selected
Allscripts as its electronic medical record solution.
The selection of Flowcast 3.0 will enable improvements for these
organizations in two key areas: follow-up on unpaid claims and reduced days in
accounts receivable. Flowcast and Allscripts will provide a comprehensive,
integrated solution for practice management and clinical automation and
strengthen financial and administrative support.
IDX Groupcast(TM) agreements in the second quarter spanned small to mid-
size group practices including billing services, single-specialty practices and
complex, multi-site groups including Mercy Clinic, of Joplin, MO, a 79- doctor,
25-location medical group, which supports St. John's Regional Medical Center.
IDX also signed an agreement to upgrade North Carolina Baptist Hospital of
Winston-Salem, NC to the advanced technology of IDX Carecast(TM). The 830-bed
healthcare facility has been an IDX customer since 1996 and is the major
teaching hospital for Wake Forest University Baptist Medical Center. The
organization intends to continue its comprehensive use of electronic patient
records, introduce electronic tools for interdisciplinary care planning and
expand CPOE across inpatient and ambulatory settings. As a result of this
planned expansion, approximately 600 physicians will be able to submit
medication orders online from the clinic setting to North Carolina Baptist
Hospital.
IDX Imagecast(TM) agreements include long-time customer Inova Health System
of Falls Church, VA, a multi-hospital system that conducts 600,000 radiology
exams annually, for the IDX Radiology Information System (RIS) and Picture
Archiving and Communications System (PACS).
Imagecast RIS customer, Temple University Health System of Philadelphia, PA
purchased the PACS for full-fidelity image distribution across its five-hospital
enterprise. The agreement is one of the three largest PACS deals signed by IDX.
IDX management remains comfortable with projected 2004 revenue guidance of
$500 - $525 million and earnings per share guidance of $0.95 - $0.99. The
company projects 2005 revenues of $600 - $650 million and earnings per share
guidance of $1.20 - $1.35.
A conference call with investors will be held on July 29, 2004 at 11:00 am
EDT to discuss these results. An audio Webcast of the call will be available at
our Internet site: http://www.idx.com, Investor Relations, Multimedia.
ABOUT IDX
Founded in 1969, IDX Systems Corporation provides information technology
solutions to maximize value in the delivery of healthcare, improve the quality
of patient service, enhance medical outcomes, and reduce the costs of care. IDX
supports these objectives with a broad range of complementary and functionally
rich products installed at 3,300 customer sites. Customers include 138,000
physicians who utilize practice management systems to improve patient care and
other workflow processes. IDX solutions are installed at approximately:
* 380 Integrated delivery networks (IDNs) representing more than 500
hospitals
* 175 large group practices with more than 200 physicians
* 665 mid-size group practices with less than 200 physicians
The IDX web strategy includes browser technology, e-commerce and web-based
tools -- built using Internet architecture -- that facilitates access for
patients, physicians and care providers to vital health information and data
managed by the IDX clinical, administrative, financial, and managed care
products. IDX has approximately 2,100 full-time employees.
THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS ABOUT IDX SYSTEMS
CORPORATION THAT INVOLVE A NUMBER OF RISKS AND UNCERTAINTIES. AMONG THE
IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM
THOSE INDICATED BY SUCH FORWARD-LOOKING STATEMENTS ARE CHANGES IN THE
RELATIONSHIP BETWEEN OUR PRIME CONTRACTORS AND THEIR CUSTOMERS, CHANGES IN OUR
RELATIONSHIPS WITH OUR PRIME CONTRACTORS OR OUR SUB-CONTRACTORS, INCLUDING
DIFFICULTIES IN FINALIZING THE DOCUMENTATION OF THESE RELATIONSHIPS,
UNCERTAINTIES IN THE APPLICATION OF ACCOUNTING POLICES TO THE RECOGNITION OF
REVENUE AND EXPENSES UNDER MATERIAL CONTRACTS FOR WORK IN THE UNITED KINGDOM,
UNCERTAINTIES OR DIFFICULTIES IN DEVELOPING NEW SERVICES AND SYSTEMS,
DIFFICULTIES IN IMPLEMENTING SYSTEMS, POSSIBLE DEFERRAL, DELAY OR CANCELLATION
BY CUSTOMERS OF COMPUTER SYSTEM OR SERVICE PURCHASE DECISIONS, DEVELOPMENT BY
COMPETITORS OF NEW OR SUPERIOR TECHNOLOGIES, CHANGING ECONOMIC, POLITICAL AND
REGULATORY INFLUENCES ON THE HEALTHCARE INDUSTRY, POSSIBLE DISRUPTIONS IN THE
NATIONAL ECONOMY CAUSED BY TERRORIST ACTIVITIES AND FOREIGN CONFLICTS, CHANGES
IN PRODUCT PRICING POLICIES, GOVERNMENTAL REGULATION OF TECHNOLOGIES, THE
POSSIBILITY OF PRODUCT-RELATED LIABILITIES, AND FACTORS DETAILED FROM TIME TO
TIME IN IDX'S PERIODIC REPORTS AND REGISTRATION STATEMENTS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION, WHICH IMPORTANT FACTORS ARE INCORPORATED
HEREIN BY REFERENCE. IDX UNDERTAKES NO OBLIGATION TO UPDATE FORWARD-LOOKING
STATEMENTS TO REFLECT CHANGED ASSUMPTIONS, THE OCCURRENCE OF UNANTICIPATED
EVENTS, OR CHANGES IN FUTURE OPERATING RESULTS, FINANCIAL CONDITION OR BUSINESS
OVER TIME.
IDX SYSTEMS CORPORATION
Consolidated Balance Sheets
(in thousands)
June 30, December 31,
2004 2003
(unaudited) (audited)
Assets
Cash and cash equivalents $45,844 $25,536
Marketable securities 78,734 79,068
Accounts receivable, net 125,649 93,709
Costs and estimated earnings in
excess of billings on
uncompleted contracts 11,595 3,961
Refundable income taxes 9,006 8,564
Prepaid and other current assets 11,663 7,485
Deferred tax asset 4,594 5,899
Total current assets 287,085 224,222
Property and equipment, net 86,202 86,216
Capitalized software costs, net 4,922 3,806
Goodwill, net 2,508 2,508
Costs and estimated earnings in
excess of billings on
uncompleted contracts 12,004 --
Other assets 10,304 10,357
Deferred tax asset 10,878 11,404
Total assets $413,903 $338,513
Liabilities and stockholders'
equity
Accounts payable, accrued
expenses and other liabilities $61,862 $54,843
Deferred revenue 62,923 23,016
Total current liabilities 124,785 77,859
Deferred revenue 4,264 --
Total liabilites 129,049 77,859
Stockholders' equity 284,854 260,654
Total liabilities and
stockholders' equity $413,903 $338,513
IDX SYSTEMS CORPORATION
Consolidated Statements of Operations
(in thousands, except for per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
Revenues
Systems sales $46,085 $36,786 $82,059 $69,327
Maintenance and service fees 84,300 61,493 150,876 121,393
Total revenues 130,385 98,279 232,935 190,720
Operating expenses
Cost of systems sales 15,593 11,508 26,810 23,300
Cost of maintenance and services 60,992 43,690 107,583 85,351
Selling, general and
administrative 26,464 21,058 54,891 41,512
Software development costs 15,259 14,228 29,146 27,578
Restructuring charge 387 -- 387 --
Total operating expenses 118,695 90,484 218,817 177,741
Operating income 11,690 7,795 14,118 12,979
Other income (expense)
Other income (expense) 335 (38) 451 86
Gain on investment 1,009 -- 1,009 --
Total other income (expense) 1,344 (38) 1,460 86
Income before income taxes 13,034 7,757 15,578 13,065
Income tax provision (4,953) (2,327) (5,920) (3,919)
Income from continuing
operations 8,081 5,430 9,658 9,146
Discontinued operations
Gain on sale of discontinued
operations, net of loss and
income taxes -- 26,711 -- 26,826
Net income $8,081 $32,141 $9,658 $35,972
Basic earnings per share
Income from continuing
operations $0.27 $0.19 $0.32 $0.31
Income (loss) from discontinued
operations $ -- $0.91 $ -- $0.92
Basic earnings per share $0.27 $1.10 $0.32 $1.23
Basic weighted average shares
outstanding 30,181 29,195 30,031 29,184
Diluted earnings per share
Income from continuing
operations $0.26 $0.18 $0.31 $0.31
Income from discontinued
operations $ -- $0.91 $ -- $0.91
Diluted earnings per share $0.26 $1.09 $0.31 $1.22
Diluted weighted average shares
outstanding 31,572 29,456 31,503 29,436
Earnings per share numbers may not foot due to rounding.
IDX Systems Corporation
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended
June 30,
2004 2003
OPERATING ACTIVITIES
Net income from continuing
operations 8,081 32,141
Less: Income from discontinued
operations, net of income
taxes -- 311
Gain on disposal of
discontinued operations,
net of income -- 26,400
Net income from continuing
operations 8,081 5,430
Adjustments to reconcile net
income to net cash
provided by operating
activities:
Depreciation 4,143 2,948
Amortization 1,178 469
Gain on sale of investment (1,009) --
Deferred tax provision 4,171 2,746
Increase in allowance for
doubtful accounts 294 294
Stock based compensation 102 168
Tax benefit related to
exercise of non-qualified
stock options 1,190 --
Foreign currency
transaction gain / loss (207) --
Restructuring charge 387 --
Changes in operating
assets and liabilities:
Accounts receivable (27,688) (8,177)
Prepaid expenses and
other assets 5,756 526
Accounts payable and
accrued expenses 1,879 3,566
Federal and state
income taxes (1,243) (744)
Deferred revenue 22,282 3,002
Net cash provided
by operating
activities 19,316 10,228
INVESTING ACTIVITIES
Purchase of property and
equipment, net (4,464) (8,934)
Proceeds from sale of EDiX
Corporation, net -- 53,645
Proceeds from sale of equity
investment 1,009 --
Other assets (910) (602)
Net cash (used in)
provided by
investing
activities (4,365) 44,109
FINANCING ACTIVITIES
Proceeds from sale of common
stock 4,772 1,777
Proceeds from debt issuance -- --
Repayment of debt issuance -- (23,727)
Net cash provided
by (used in)
financing activities 4,772 (21,950)
Effect of exchange rate
fluctuations on cash and cash
equivalents (406) --
Increase in cash, cash equivalents
and marketable securities from
continuing operations 19,317 32,387
Net cash provided by discontinued
operations -- 2,166
Increase in cash, cash equivalents
and marketable securities 19,317 34,553
Cash, cash equivalents and
marketable securities at
beginning of period 105,261 56,129
Cash, cash equivalents and
marketable securities at end of
period $124,578 $90,682