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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
December 12, 2002
(Date of Report)
December 11, 2002
(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 December 11, 2002, the Company announced that the Company will take
a nonrecurring charge of approximately $8.9 to $9.2 million in the fourth
quarter 2002, that the Company is increasing 2003 earnings per share guidance to
$0.74, and that the Company now believes 2002 revenues will be at the upper end
of the previously guided range of $442 to $462 million.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits.
EXHIBIT NO. DESCRIPTION PAGE
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99 IDX News Release dated 4
December 11, 2002
Page 2 of 5
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: December 12, 2002 By: /S/ JOHN A. KANE
______________________________________________
John A. Kane
Sr. Vice President, Finance and Administration
Chief Financial Officer, and Treasurer
Page 3 of 5
EXHIBIT 99
40 IDX Drive
P.O. Box 1070
Burlington, VT 05402-1070
www.idx.com
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Contacts: Jack Kane
Senior Vice President and
Chief Financial Officer
802-862-1022
Margo Happer
Director - Investor Relations and
Corporate Communications
802-859-6169
FOR IMMEDIATE RELEASE
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IDX SYSTEMS CORPORATION
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UPDATES 2002 AND 2003 GUIDANCE
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Company to Take Nonrecurring Charge in Fourth Quarter 2002
Raising 2003 EPS Guidance to $0.74
BURLINGTON, VT - December 11, 2002 -IDX Systems Corporation (NASDAQ:IDXC)
provided the following update to 2002 and 2003 guidance:
o THE COMPANY WILL TAKE A NONRECURRING CHARGE OF APPROXIMATELY $8.9 TO
$9.2 MILLION IN THE FOURTH QUARTER 2002 in accordance with the
Financial Accounting Standard Board's (FASB) Emerging Issues Task Force
(EITF) statement number 88-10 "Costs Associated with Lease Modification
or Termination."
The charge is related to asset impairment and rent obligations
associated with the Company's Seattle office, which carries a lease
agreement through 2005. IDX is moving to a new location in Seattle in
February 2003 and has been unable to secure a sub-tenant to assume its
existing lease primarily due to a depressed commercial real estate
market in Seattle.
IDX had budgeted rent expense at both Seattle locations. The write-off
and subsequent elimination of rent expense at the existing location
will have a positive effect on 2003 earnings.
o According, IDX IS INCREASING 2003 EARNINGS PER SHARE GUIDANCE TO $0.74.
The Company had previously guided to earnings of approximately $0.68
per share. The Company remains comfortable with 2003 revenue growth of
approximately 15%.
Page 4 of 5
o IDX NOW BELIEVES 2002 REVENUES WILL BE AT THE UPPER END OF THE
PREVIOUSLY GUIDED RANGE OF $442 TO $462 MILLION. Consistent with
previously issued guidance, IDX remains comfortable with 2002 earnings
per share estimates of $0.45 (excluding a $4.3 million gain reported in
the first quarter and the anticipated fourth quarter charge).
IDX IS HOLDING ITS ANNUAL INVESTOR DAY MEETING TODAY FROM 10:00 AM TO 2:30PM TO
DISCUSS OPERATIONS AND OUTLOOK FOR THE COMING YEAR. AN AUDIO WEBCAST OF THE
MEETING IS AVAILABLE AT THE IDX INTERNET SITE: 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 3,200 client sites. Customers include 134,000
physicians who utilize practice management systems to improve patient care and
other workflow processes. IDX Systems are installed at:
o 370 Integrated delivery networks (IDNs) representing more than 660
hospitals
o 175 large group practices with more than 200 physicians
o 635 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. EDiX
Corporation, an IDX subsidiary, offers medical transcription and clinical
documentation services to physicians groups and hospital customers. IDX has
approximately 4,755 full-time employees.
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 possible deferral, delay or cancellation by customers of computer
system purchase decisions, possible inability of the Company 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 e-Commerce industries, possible disruption in the national
economy caused by terrorist activities, changes in product pricing policies,
regulation of the Company's software by the U.S. Food and Drug Administration,
the possibility of product related liabilities, and factors detailed from time
to time in the Company's periodic reports and registration statements filed with
the Securities and Exchange Commission, which important factors are incorporated
herein by reference. The Company 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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