Exhibit 99.2
Eclipsys Releases Financial Results for the Quarter Ended September 30, 2003
BOCA RATON, Fla.--(BUSINESS WIRE)--Oct. 20, 2003--Eclipsys
Corporation(R) (Nasdaq:ECLP), The Outcomes Company(R), today released
results for the fiscal third quarter ended September 30, 2003.
Third quarter 2003 revenues were $68.2 million compared to
revenues of $47.5 million in Q3'02 and revenues of $63.4 million in
Q2'03. Net loss for the quarter was $(11.1) million, compared to a net
loss of $(17.2) million in the same period a year ago and a net loss
of $(11.0) million in Q2'03. Basic net loss per share was $(0.24),
compared to $(0.38) in Q3'02 and $(0.24) in Q2'03.
Operating cash flows were $0.8 million, compared to $3.8 million
in Q3'02 and $(1.7) million in Q2'03. Cash and marketable securities
were $158.8 million as of September 30, 2003, down from $181.4 million
as of September 30, 2002 and down sequentially from $170.8 million as
of June 30, 2003. The company used $12.0 million of cash during the
quarter, which is a $2.9 million increase over last quarter. This
increase was primarily related to the company's research and
development initiatives. The company capitalized $8.0 million of
software development costs during the quarter. Days sales outstanding
(DSOs) were 64 as of September 30, 2003, a decrease of 32 days from
September 30, 2002, and a decrease of 4 days from the preceding
quarter. Deferred revenue (including current and long-term) was $94.1
million as of September 30, 2003, compared to $68.1 million as of
September 30, 2002. Deferred revenue increased sequentially $6.8
million from $87.3 million as of June 30, 2003.
Eclipsys separately announced today that it has identified
response time issues with some components of SunriseXA(TM), the newest
version of its Sunrise family of products. Recognizing that response
time is of the utmost importance to its customers, Eclipsys has
developed a strategy designed to allow SunriseXA customers to continue
their deployment of SunriseXA, and to enable Eclipsys to continue its
development of planned advanced SunriseXA functionality. Eclipsys has
not determined what impact this strategy will have on future operating
results. Accordingly, Eclipsys is not able to provide guidance with
respect to Q4 2003 and 2004 at this time.
Robert J. Colletti, senior vice president and chief financial
officer, said, "We are pleased with our revenue during the quarter,
the highest in the history of our company. However, we are
disappointed that our results were adversely affected by a $1.2
million impairment charge related to the write-down of certain
elements of capitalized SunriseXA software development costs."
Paul L. Ruflin, Eclipsys president and CEO, said, "Our market
continues to show no abatement from regulatory and industry pressures
to upgrade technology. We believe our SunriseXA strategy will position
us to continue to pursue market opportunities. Customers will remain
our foremost priority, and we will continue our focus on providing
them with solutions that create value for their organizations."
Investor teleconference October 21
Eclipsys senior executives will discuss the results during an
investor community teleconference scheduled for 9 a.m. Eastern time
Tuesday, October 21. Persons interested in participating in the
teleconference should call (800) 621-5270 within 10 minutes before the
conference is slated to begin. For listen-only mode, participants can
go to 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 October 21 by visiting 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 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 several risks
in connection with our SunriseXA strategy, including the uncertainty
of the time and costs required to implement the strategy, the
potential that our strategy could change, the potential that we may
encounter technical difficulties in implementing our strategy, and the
potential that the changes to our products may affect customer demand.
Other 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 June 30, 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 September 30, 2003 and December 31, 2002
(000's Omitted)
September December
30, 2003 31, 2002
----------- -----------
Assets
Current assets:
Cash and cash equivalents $117,361 $183,500
Marketable securities 41,444 -
Accounts receivable, net 48,772 46,822
Inventory 659 656
Other current assets 13,499 16,921
----------- -----------
Total current assets 221,735 247,899
Property and equipment, net 32,356 26,800
Capitalized software development costs, net 24,882 16,375
Acquired technology, net 19 267
Goodwill 454 454
Other assets 15,150 9,402
----------- -----------
Total assets $294,596 $301,197
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Deferred revenue $86,055 $79,235
Accrued compensation costs 11,957 14,442
Other current liabilities 26,350 13,854
----------- -----------
Total current liabilities 124,362 107,531
Deferred revenue 8,049 843
Other long-term liabilities 675 226
Stockholders' equity:
Common stock 457 451
Additional paid-in-capital 409,327 405,380
Unearned stock compensation (852) (1,021)
Accumulated deficit (246,926) (211,814)
Accumulated other comprehensive loss (496) (399)
----------- -----------
Total stockholders' equity 161,510 192,597
----------- -----------
Total liabilities and stockholders' equity $294,596 $301,197
=========== ===========
Eclipsys Corporation
Consolidated Statements of Operations - Unaudited
(000's Omitted)
Three Months Ended
September 30,
2003 2002
------------- -------------
Revenues:
Systems and services $61,559 $44,521
Hardware 6,591 3,028
------------- -------------
Total revenues 68,150 47,549
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Costs and expenses:
Cost of systems and services revenues 35,855 30,924
Cost of hardware revenues 5,551 2,479
Sales and marketing 17,766 14,487
Research and development 14,633 12,129
General and administrative 3,063 3,218
Depreciation and amortization 2,761 2,218
------------- -------------
Total costs and expenses 79,629 65,455
------------- -------------
Loss from operations (11,479) (17,906)
Interest income, net 412 732
------------- -------------
Loss before income taxes (11,067) (17,174)
Provision for income taxes - -
------------- -------------
Net loss $(11,067) $(17,174)
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Earnings per share:
Basic loss per share $(0.24) $(0.38)
============= =============
Diluted loss per share $(0.24) $(0.38)
============= =============
Weighted average shares outstanding:
Basic 45,488 44,774
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Diluted 45,488 44,774
============= =============
Eclipsys Corporation
Consolidated Statements of Operations - Unaudited
(000's Omitted)
Nine Months Ended
September 30,
2003 2002
-------------- --------------
Revenues:
Systems and services $173,637 $153,383
Hardware 14,735 11,237
-------------- --------------
Total revenues 188,372 164,620
-------------- --------------
Costs and expenses:
Cost of systems and services revenues 102,559 87,047
Cost of hardware revenues 12,398 9,292
Sales and marketing 52,040 37,725
Research and development 41,152 33,584
General and administrative 9,847 8,476
Depreciation and amortization 7,630 6,250
-------------- --------------
Total costs and expenses 225,626 182,374
-------------- --------------
Loss from operations (37,254) (17,754)
Interest income, net 2,143 3,007
-------------- --------------
Loss before income taxes (35,111) (14,747)
Provision for income taxes - 165
-------------- --------------
Net loss $(35,111) $(14,912)
============== ==============
Earnings per share:
Basic loss per share $(0.78) $(0.33)
============== ==============
Diluted loss per share $(0.78) $(0.33)
============== ==============
Weighted average shares outstanding:
Basic 45,283 44,631
============== ==============
Diluted 45,283 44,631
============== ==============
CONTACT: Eclipsys
(media)
Judy Barnett, 561-322-4351
judy.barnett@eclipsys.com
or
(investors)
Robert J. Colletti, 561-322-4650
investor.relations@eclipsys.com