Exhibit 99.1
Eclipsys Releases Financial Results for the First Quarter Ended March
31, 2003
BOCA RATON, Fla.--(BUSINESS WIRE)--April 21, 2003--Eclipsys
Corporation(R) (Nasdaq:ECLP), The Outcomes Company(R), today released
results for the first quarter ended March 31, 2003.
First quarter results
First quarter 2003 revenues were $56.8 million compared to
revenues of $62.8 million in Q1'02 and revenues of $53.4 million in
Q4'02. Net loss for the quarter was $(13.0) million, compared to net
income of $5.3 million in the same period a year ago and a net loss of
$(14.9) million in Q4'02. Basic earnings (loss) per share was $(0.29),
compared to $0.12 in Q1'02 and $(0.33) in Q4 '02. This represents a
sequential improvement of $0.04 over the preceding quarter.
Operating cash flows were $1.2 million, compared to $10.5 million
in Q1'02 and $7.0 million in Q4'02. Cash and marketable securities
were $180.0 million as of March 31, 2003, up from $174.5 million as of
March 31, 2002 and down sequentially from $183.5 million as of
Dec. 31, 2002. Days sales outstanding were 71 as of March 31, 2003, a
decrease of 26 days from the previous year and a decrease of eight
days from the preceding quarter. Deferred revenue was $85.0 million as
of March 31, 2003 compared to $59.3 million as of March 31, 2002.
Deferred revenues sequentially increased $5.8 million from
$79.2 million as of Dec. 31, 2002.
"We are pleased with the progress we have made over the past
several quarters," said Robert J. Colletti, senior vice president and
chief financial officer. "Our first quarter results are consistent
with our expectations and reflect our continued investment in research
and development, as well as the expansion of our sales and marketing
organizations. Additionally, we continue to make improvements in our
operations as evidenced by our improvement in days sales outstanding
which decreased sequentially by eight days. This quarter represents
our tenth consecutive quarter of positive operating cash flows."
SunriseXA marketplace acceptance
"SunriseXA, our Web services-based advanced health information
management solution, is increasingly being selected by healthcare
organizations looking for information technology to address patient
safety, quality of care and workflow issues," said Paul L. Ruflin,
Eclipsys president and CEO. "The changes we have made to our business
model, the investments we are making in sales and marketing, and our
decision to expedite SunriseXA development for additional advanced
clinical functionality, are all having the desired impact to create
demand for Eclipsys solutions. Because of the marketplace acceptance
of SunriseXA, we are very excited about the future of Eclipsys."
"Additionally, we continue to be recognized by independent third
parties who evaluate healthcare information technology organizations,"
added Ruflin. "The momentum we are experiencing in the marketplace
with our Sunrise solutions has recently been reflected by Frost &
Sullivan, a leading consulting firm, who ranked Eclipsys as having the
largest market share of full computerized physician order entry (CPOE)
solutions in the US urban hospital market. The study evaluated CPOE
solutions from various vendors currently in use at urban hospitals
nationwide. The study stated that Eclipsys has probably been the
fastest CPOE provider 'out of the gate.'"
This latest accomplishment is in addition to the top industry
rankings that Eclipsys achieved during 2002 from independent research
groups such as KLAS and Five Rights Consulting, Inc., and in The
Medical Records Institute's Towards an Electronic Patient Record
(TEPR) Awards. Frost & Sullivan predicts a major increase in CPOE
utilization by 2005, as healthcare organizations increasingly look to
CPOE solutions to address patient safety and cost-saving
opportunities.
"We are well positioned to capitalize on the market's keen
interest in advanced core clinical solutions," stated Ruflin. "Based
on the number of sites going live in 2003 combined with the growing
market acceptance of Eclipsys' advanced core clinical solution, we
expect to maintain and expand our lead in the marketplace going
forward."
Investor teleconference April 22
Eclipsys senior executives will discuss the results during an
investor community teleconference scheduled for 9 a.m. Eastern time
Tuesday, April 22. Persons interested in participating in the
teleconference should call (800) 621-5175 within 10 minutes before the
conference is slated to begin. For listen-only mode, participants can
go to http://www.eclipsys.com about 10 minutes prior to the conference
call to register and to download the necessary audio software. An
audio replay will be available for approximately 48 hours beginning
11 a.m. Eastern time April 22 by visiting http://www.eclipsys.com.
About Eclipsys
Eclipsys is The Outcomes Company(R), founded with a mission of
better healthcare through knowledge(TM). More than 1,500 healthcare
facilities use Eclipsys solutions to reduce errors, enhance workflow,
and balance and improve clinical, financial and satisfaction outcomes.
Our solutions include integrated software, architecture and services
that support all members of the healthcare team with the knowledge
they need to support and improve the organization's four core
processes -- care delivery, patient flow, revenue and administrative
management, and customer relations. In 2002, Eclipsys introduced the
first components of its most advanced healthcare information system,
SunriseXA, which is built on a single, open, component-based Web
architecture based on the Microsoft .NET Framework and other industry
standards. For more information, see http://www.eclipsys.com or e-mail
info@eclipsys.com.
Statements in this news release concerning future results,
performance or expectations are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, as
amended. All forward-looking statements included in this document are
based upon information available to Eclipsys as of the date hereof and
Eclipsys assumes no obligation to update any such forward-looking
statements. Because such statements involve risks and uncertainties,
actual results may differ materially from those expressed or implied
by such forward-looking statements. These risks include potential
financial constraints and other factors faced by the healthcare
industry, changing customer requirements and other risks described in
the filings of Eclipsys with the Securities and Exchange Commission,
including its annual report on Form 10K for the year ended
December 31, 2002. Eclipsys, Eclipsys Corporation and The Outcomes
Company are registered trademarks and SunriseXA and the phrase
"better healthcare through knowledge" are trademarks of Eclipsys
Technologies Corporation. Other product and company names in this
news release are trademarks or registered trademarks of their
respective companies.
Consolidated Balance Sheets - Unaudited
As of March 31, 2003 and December 31, 2002
(000's Omitted)
March 31, December 31,
2003 2002
-------------- --------------
Assets
Current assets:
Cash and cash equivalents $127,512 $183,500
Marketable securities 52,449 -
Accounts receivable, net 44,692 46,822
Inventory 811 656
Other current assets 14,996 16,921
-------------- --------------
Total current assets 240,460 247,899
Property and equipment, net 27,064 26,800
Capitalized software development costs,
net 17,258 16,375
Acquired technology, net 131 267
Goodwill 454 454
Other assets 9,311 9,402
-------------- --------------
Total assets $294,678 $301,197
============== ==============
Liabilities and Stockholders' Equity
Current liabilities:
Deferred revenue $84,986 $79,235
Accrued compensation costs 12,177 14,442
Other current liabilities 16,108 13,854
-------------- --------------
Total current liabilities 113,271 107,531
Deferred revenue 901 843
Other long-term liabilities 270 226
Stockholders' equity:
Common stock 452 451
Additional paid-in-capital 405,978 405,380
Unearned stock compensation (964) (1,021)
Accumulated deficit (224,839) (211,814)
Accumulated other comprehensive income (391) (399)
-------------- --------------
Total stockholders' equity 180,236 192,597
-------------- --------------
Total liabilities and stockholders'
equity $294,678 $301,197
============== ==============
Eclipsys Corporation
Consolidated Statements of Operations - Unaudited
(000's Omitted)
Three Months Ended
March 31,
2003 2002
----------------- ----------------
Revenues:
Systems and services $53,697 $57,130
Hardware 3,139 5,689
----------------- ----------------
Total revenues 56,836 62,819
----------------- ----------------
Costs and expenses:
Cost of systems and services
revenues 32,804 27,700
Cost of hardware revenues 2,684 4,612
Sales and marketing 16,556 11,380
Research and development 12,984 10,239
General and administrative 3,364 2,534
Depreciation and amortization 2,369 1,989
----------------- ----------------
Total costs and expenses 70,761 58,454
----------------- ----------------
(Loss) income from operations (13,925) 4,365
Interest income, net 900 1,109
----------------- ----------------
(Loss) income before income taxes (13,025) 5,474
Provision for income taxes - 165
----------------- ----------------
Net (loss) income $(13,025) $5,309
================= ================
Earnings per share:
Basic (loss) earnings per share $(0.29) $0.12
================= ================
Diluted (loss) earnings per share $(0.29) $0.11
================= ================
Weighted average shares
outstanding:
Basic 45,069 44,498
================= ================
Diluted 45,069 46,938
================= ================
CONTACT: Eclipsys Corporation, Boca Raton
Media:
Judy Barnett, 561/322-4351
judy.barnett@eclipsys.com
or
Investors:
Robert J. Colletti, 561/322-4650
investor.relations@eclipsys.com