Exhibit 99.1
Eclipsys Releases Financial Results for the Quarter Ended June 30,
2003
BOCA RATON, Fla.--(BUSINESS WIRE)--July 21, 2003--Eclipsys
Corporation(R) (Nasdaq:ECLP), The Outcomes Company(R), today released
results for the quarter ended June 30, 2003.
Second-quarter results
Second-quarter 2003 revenues were $63.4 million compared to
revenues of $54.3 million in Q2'02 and revenues of $56.8 million in
Q1'03. Net loss for the quarter was $(11.0) million, compared to a net
loss of $(3.0) million in the same period a year ago and a net loss of
$(13.0) million in Q1'03. Basic net loss per share was $(0.24),
compared to $(0.07) in Q2'02 and $(0.29) in Q1'03. This represents a
sequential improvement of $0.05 over the preceding quarter.
Operating cash flows were $(1.7) million, compared to $10.9
million in Q2'02 and $1.2 million in Q1'03. Cash and marketable
securities were $170.8 million as of June 30, 2003, down from $181.3
million as of June 30, 2002 and down sequentially from $180.0 million
as of March 31, 2003. Days sales outstanding (DSOs) were 68 as of June
30, 2003, a decrease of 27 days from June 30, 2002, and a decrease of
3 days from the preceding quarter. Deferred revenue (including current
and long-term) was $87.3 million as of June 30, 2003, compared to
$58.3 million as of June 30, 2002. Deferred revenue increased
sequentially $1.4 million from $85.9 million as of March 31, 2003.
"We are pleased with our progress," said Robert J. Colletti,
senior vice president and chief financial officer. "We are
particularly pleased with our growth in revenue and decrease in DSOs,
as these metrics demonstrate the continued acceptance of our solutions
in the marketplace. Our results are consistent with our expectations
and reflect our ongoing investment in research and development, as
well as the expansion of our sales and marketing organizations."
Continued momentum
"The market continues to respond favorably to our solutions, the
changes we have effected in our operations and the investments we are
making in the company," said Paul L. Ruflin, president and CEO.
"Second-quarter 2003 was a very busy sales quarter for Eclipsys. We
have closed more significant software deals in 2003 year-to-date than
we had closed in all of 2002. Our pipeline of highly qualified
opportunities remains strong and continues to strengthen."
Ruflin added, "We are pleased with our financial results for the
quarter. Our increase in revenue Q2'03 over Q1'03 is 11.6% and Q2'03
over Q2'02 is 16.8%. Our Q2'03 revenue is the highest-revenue quarter
we have had for more than three years.
"It is also great news that the third release of SunriseXA's
advanced core clinical solution, released in December of 2002, went
live at Rush-Copley Medical Center roughly two weeks ago," Ruflin
continued. "SunriseXA is our native Web services-based
fourth-generation core clinical system built on the Microsoft .NET
Framework. This release which included EMR, orders, results and CDR
was implemented at Rush in less than seven months. The system is live
house-wide and currently being utilized by 600 users, including 100
physicians, for computerized physician order entry and results review.
Rush expects to bring live clinical documentation by year end. This
means that nurses and doctors will be relying on the system for not
only order entry and results reporting, but the significant task of
clinical documentation...making these important processes paperless."
Investor teleconference July 22
Eclipsys senior executives will discuss the results during an
investor community teleconference scheduled for 9 a.m. Eastern time
Tuesday, July 22. Persons interested in participating in the
teleconference should call (888) 328-2936 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 July 22 by visiting http://www.eclipsys.com.
About Eclipsys
Eclipsys is a leading provider of advanced clinical, financial and
management information software and service solutions to more than
1,500 healthcare facilities. Eclipsys empowers healthcare
organizations to improve patient safety, revenue cycle management and
operational efficiency through innovative information solutions. 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 quarterly report on Form 10-Q for the quarter ended
March 31, 2003. 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.
Eclipsys Corporation
Consolidated Balance Sheets - Unaudited
As of June 30, 2003 and December 31, 2002
(000's Omitted)
June 30, December 31,
2003 2002
-------- -----------
Assets
Current assets:
Cash and cash equivalents $118,097 $183,500
Marketable securities 52,740 -
Accounts receivable, net 47,552 46,822
Inventory 691 656
Other current assets 14,155 16,921
--------- ---------
Total current assets 233,235 247,899
Property and equipment, net 28,583 26,800
Capitalized software development costs, net 20,218 16,375
Acquired technology, net 75 267
Goodwill 454 454
Other assets 12,029 9,402
--------- ---------
Total assets $294,594 $301,197
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Deferred revenue $84,009 $79,235
Accrued compensation costs 14,673 14,442
Other current liabilities 21,076 13,854
--------- ---------
Total current liabilities 119,758 107,531
Deferred revenue 3,307 843
Other long-term liabilities 755 226
Stockholders' equity:
Common stock 455 451
Additional paid-in-capital 407,606 405,380
Unearned stock compensation (908) (1,021)
Accumulated deficit (235,858) (211,814)
Accumulated other comprehensive income (521) (399)
--------- ---------
Total stockholders' equity 170,774 192,597
--------- ---------
Total liabilities and stockholders' equity $294,594 $301,197
========= =========
Eclipsys Corporation
Consolidated Statements of Operations - Unaudited
(000's Omitted)
Three Months Ended
June 30,
2003 2002
---- ----
Revenues:
Systems and services $58,381 $51,732
Hardware 5,005 2,520
------- -------
Total revenues 63,386 54,252
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Costs and expenses:
Cost of systems and services revenues 33,900 28,424
Cost of hardware revenues 4,163 2,202
Sales and marketing 17,719 11,856
Research and development 13,535 11,216
General and administrative 3,420 2,724
Depreciation and amortization 2,500 2,043
------- -------
Total costs and expenses 75,237 58,465
------- -------
Loss from operations (11,851) (4,213)
Interest income, net 831 1,166
------- -------
Loss before income taxes (11,020) (3,047)
Provision for income taxes - -
------- -------
Net loss $(11,020) $(3,047)
========= =======
Earnings per share:
Basic loss per share $(0.24) $(0.07)
========= =========
Diluted loss per share $(0.24) $(0.07)
========= =========
Weighted average shares outstanding:
Basic 45,289 44,628
========= ========
Diluted 45,289 44,628
========= ========
Eclipsys Corporation
Consolidated Statements of Operations - Unaudited
(000's Omitted)
Six Months Ended
June 30,
2003 2002
--------- ---------
Revenues:
Systems and services $112,078 $108,862
Hardware 8,144 8,209
--------- --------
Total revenues 120,222 117,071
--------- --------
Costs and expenses:
Cost of systems and services revenues 66,704 56,155
Cost of hardware revenues 6,847 6,813
Sales and marketing 34,274 23,205
Research and development 26,519 21,455
General and administrative 6,784 5,258
Depreciation and amortization 4,869 4,032
--------- --------
Total costs and expenses 145,997 116,918
--------- --------
(Loss) income from operations (25,775) 153
Interest income, net 1,731 2,275
--------- --------
(Loss) income before income taxes (24,044) 2,428
Provision for income taxes - 165
--------- --------
Net (loss) income $(24,044) $2,263
========= ========
Earnings per share:
Basic (loss) earnings per share $(0.53) $0.05
========= ========
Diluted (loss) earnings per share $(0.53) $0.05
========= ========
Weighted average shares outstanding:
Basic 45,179 44,563
========= ========
Diluted 45,179 46,853
========= ========
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