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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
October 2, 2001
(Date of Report)
September 28, 2001
(Date of earliest event reported)
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Commission File Number 0-26816
IDX SYSTEMS CORPORATION
(Exact name of registrant as specified in its charter)
Vermont 03-0222230
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
40 IDX Drive
South Burlington, VT 05403
(Address of principal executive offices)
Registrant's telephone number, including area code: (802-862-1022)
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Exhibit Index on Page 2
ITEM 5. OTHER EVENTS
This Form 8-K, including without limitation the News Release attached
as Exhibit 99, contains "forwarding-looking statements" as defined in Section
27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange
Act of 1934. For this purpose, any statements contained in this Form 8-K,
including without limitation the News Release attached as Exhibit 99, that are
not statements of historical fact may be deemed to be forward-looking
statements. Words such as "believes," "anticipates," "plans," "expects," "will"
and similar expressions are intended to identify forward-looking statements.
On September 28, 2001, the Company announced that, based on currently
available information, the Company expects third quarter 2001 revenues will be
approximately $83-87 million and expects a net loss for the quarter of $0.27 to
$0.36 per share. In light of third quarter results, the Company is no longer
comfortable with prior guidance for 2001. The Company is comfortable with
current analyst consensus of $0.40 per share for 2002.
The Company also announced that it plans to realign its group practice
businesses to achieve greater efficiencies and profitability. The restructuring
is expected to include workforce and expense reductions resulting in an annual
cost savings of $20 - 25 million in 2002. As a result, the Company expects to
take a fourth-quarter charge in an amount still to be determined.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits.
EXHIBIT NO. DESCRIPTION PAGE
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99 IDX News Release dated 4
September 28, 2001
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
IDX SYSTEMS CORPORATION
(Registrant)
Date: October 2, 2001 By: /S/ JOHN A. KANE
__________________________________________
John A. Kane
Vice President, Finance and Administration
Chief Financial Officer, and Treasurer
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EXHIBIT 99
IDX Systems Corporation
40 IDX Drive
P.O. Box 1070
Burlington, VT 05402-1070
www.idx.com
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Contacts: Margo Happer
Director - Investor Relations
and Corporate Communications
802-864-1758 X6169
FOR IMMEDIATE RELEASE
IDX SYSTEMS CORPORATION
UPDATES 2001 GUIDANCE
REMAINS COMFORTABLE WITH 2002 EPS PROJECTIONS
BURLINGTON, VT - September 28, 2001 - IDX Systems Corporation (NASDAQ:IDXC)
today announced that based on currently available information, the company
expects third quarter 2001 revenues will be approximately $83-87 million and
expects a net loss for the quarter of $0.27 to $0.36 per shares. In light of
third quarter results, the company is no longer comfortable with prior guidance
for 2001. IDX is comfortable with current analyst consensus of $0.40 per share
for 2002.
"Prior to September 11, IDX was making progress in attaining across-the-board,
sustained sales momentum," said Mr. Richard Tarrant, Chief Executive Officer of
IDX. "These tragic events have disrupted our forward progress, but we believe
our prospects for regaining momentum in 2002 are excellent."
IDX also announced today it plans to realign its group practice businesses to
achieve greater efficiencies and profitability. The restructuring is expected to
include workforce and expense reductions resulting in an annual cost savings of
$20 - 25 million in 2002. As a result, IDX expects to take a fourth-quarter
charge in an amount still to be determined.
"We plan to align our group practice businesses in order to gain synergies and
provide more focus on our premier customer base. In addition, this move will
enable us to better position our GPMS product line for new, higher-profit market
opportunities," said Mr. Tarrant.
"We expect to continue as the leading provider of financial systems in the large
group practice and academic medical market. During our 30-year history, our
financial systems have captured a significant portion of this market," said Mr.
Tarrant. "We believe we will continue to have a superb business in the group
practice market by concentrating our efforts on providing value-added products
and services to our existing customers. We also believe there are attractive
sales opportunities in the large group practice market to be pursued on a more
focused basis.
"We will continue to invest in our LastWord product, which we believe holds
significant opportunity. At the same time, EDiX and our Radiology Imaging
Solutions Division are expected to continue steady
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growth. These opportunities, combined with the realignment in the group practice
market, will help ensure IDX remains on track for the future. While current
market conditions reduce short-term revenue and earnings visibility, we believe
our realignment and the resulting cost reduction will position us well for
profitability in 2002," concluded Mr. Tarrant.
A conference call with investors will be held on September 28, 2001 at 10:00 am
EST to discuss these results. An audio Webcast of the call is available at our
Internet site: www.idx.com, Investor Relations, Multimedia.
IDX plans to announce full third quarter results on October 30, 2001.
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, functionally
rich, and highly integrated products installed at 2,600 client sites. Customers
include 120,000 physicians who utilize practice management systems to improve
patient care and other workflow processes. IDX Systems are installed at:
o 320 Integrated delivery networks (IDNs) representing more than 500 hospitals o
260 large group practices with more than 100 physicians o 500 small and mid-size
group practices with less than 100 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. EDiX
Corporation, an IDX subsidiary, offers medical transcription and clinical
documentation services to physicians groups and hospital customers. IDX has
4,452 full-time employees.
IDX, LastWord, IDXtend and EDiX, are trademarks of IDX Systems Corporation.
This press release contains forward-looking statements 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 the current economic uncertainty caused by the tragic events of
September 11, 2001 the possible deferral, delay or cancellation by customers of
computer system purchase decisions, the possible inability of IDX to realize
benefits from its alliance with Allscripts Healthcare Solutions, Inc., possible
delay of systems installations, development by competitors of new or superior
technologies, changing economic, political and regulatory influences on the
healthcare and Internet industries, changes in product pricing policies, general
economic conditions and regulatory developments in the healthcare industry, and
factors detailed from time to time in the 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.
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