Exhibit 99.1
Eclipsys Releases Financial Results for the Quarter and
Year Ended December 31, 2003
BOCA RATON, Fla.--(BUSINESS WIRE)--Jan. 21, 2004--Eclipsys
Corporation(R) (Nasdaq:ECLP), The Outcomes Company(R), today released
results for the quarter and year ended December 31, 2003.
The following table summarizes significant financial data (in
millions, except per share data):
-------------------------------------------------
As compared to
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------- ------------------------ ------------------------
Three Three months ended Three months ended
months December 31 September 30
ended
Dec. 31
--------------------------------- ------------------------
2003 2002 Change $ Change % 2003 Change $ Change %
------- ------------------------ ------------------------
Revenues $ 66.3 $ 53.4 $ 12.9 24.2% $ 68.2 $ (1.9) -2.8%
------- ------------------------ ------------------------
Net loss $(20.9) $(14.9) $ (6.0) 40.3% $(11.1) $ (9.8) 88.3%
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Basic and
diluted
loss per
share $(0.46) $(0.33) $(0.13) 39.4% $(0.24) $(0.22) 91.7%
------- ------------------------ ------------------------
Operating
cash flows $ (3.8) $ 7.0 $(10.8) -154.3% $ 0.9 $ (4.7) -522.2%
------- ------------------------ ------------------------
Purchase of
fixed
assets $ 2.8 $ 3.2 $ (0.4) -12.5% $ 6.5 $ (3.7) -56.9%
------- ------------------------ ------------------------
Capitalized
software
development
costs $ 2.7 $ 2.4 $ 0.3 12.5% $ 8.0 $ (5.3) -66.3%
------- ------------------------ ------------------------
------- ------------------------ ------------------------
As of As of December 31 As of September 30
Dec. 31
--------------------------------- ------------------------
2003 2002 Change $ Change % 2003 Change $ Change %
------- ------------------------ ------------------------
Cash, cash
equivalents
and
marketable
securities $151.7 $183.5 $(31.8) -17.3% $158.8 $(7.1) -4.5%
------- ------------------------ ------------------------
Days sales
outstanding 75.0 79.0 (4.0) -5.1% 64.0 11.0 17.2%
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Deferred
revenue $101.2 $ 80.1 $ 21.1 26.3% $ 94.1 $ 7.1 7.5%
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------------------------
As compared to
------------------------
---------------------------------------
Year Year
ended ended
December 31 December 31
---------------------------------------
2003 2002 Change $ Change %
------- ------------------------
Revenues $ 254.7 $218.1 $ 36.6 16.8%
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Net loss $(56.0) $(29.8) $(26.2) 87.9%
------- ------------------------
Basic and
diluted
loss per
share $ (1.23) $(0.67) $(0.56) 83.6%
------- ------------------------
Operating
cash flows $ (3.4) $ 32.2 $(35.6) -110.6%
------- ------------------------
Purchase of
fixed
assets $ 16.0 $ 12.9 $ 3.1 24.0%
------- ------------------------
Capitalized
software
development
costs $ 18.2 $ 8.8 $ 9.4 106.8%
------- ------------------------
------- ------------------------
As of As of December 31
Dec. 31
-------- ------------------------
2003 2002 Change $ Change %
------- ------------------------
Cash & cash
equivalents $151.7 $183.5 $(31.8) -17.3%
------- ------------------------
Days sales
outstanding 75.0 79.0 (4.0) -5.1%
------- ------------------------
Deferred
revenue $101.2 $ 80.1 $ 21.1 26.3%
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Fourth quarter results
Fourth quarter 2003 revenues were $66.3 million compared to
revenues of $53.4 million in Q4'02 and revenues of $68.2 million in
Q3'03. Net loss for the quarter was $(20.9) million, compared to a net
loss of $(14.9) million in the same period a year ago and a net loss
of $(11.1) million in Q3'03. Basic and diluted net loss per share was
$(0.46), compared to $(0.33) in Q4'02 and $(0.24) in Q3'03.
Operating cash flows were $(3.8) million, compared to $7.0 million
in Q4'02 and $932,000 in Q3'03. Cash, cash equivalents and marketable
securities were $151.7 million as of December 31, 2003, down from
$183.5 million as of December 31, 2002 and down sequentially from
$158.8 million as of September 30, 2003. Days sales outstanding (DSOs)
were 75 as of December 31, 2003, a decrease of 4 days from
December 31, 2002, and an increase of 11 days from the preceding
quarter. Deferred revenue (including current and long-term) was
$101.2 million as of December 31, 2003, compared to $80.1 million as
of December 31, 2002. Deferred revenue increased sequentially
$7.1 million from $94.1 million as of September 30, 2003.
Year ended December 31, 2003
Revenues for the year ended December 31, 2003 were $254.7 million,
compared to $218.1 million in the prior year. Net loss for the period
was $(56.0) million, as compared to $(29.8) million in the previous
year. Basic and diluted net loss per share was $(1.23) compared to
$(0.67) in the prior year. Operating cash flows decreased to
$(3.4) million, compared to $32.2 million in 2002.
Robert J. Colletti, senior vice president and chief financial
officer, said: "Given the difficult challenges we faced this quarter,
we are pleased with our fourth quarter revenues, which were the third
highest in the history of the company, last quarter being the highest.
In assessing our fourth quarter results there are two significant
items to note. First, included in fourth quarter results was a charge
of $4.4 million related to anticipated costs associated with our
previously announced SunriseXA response time issue. Second, lower
capitalization of software development costs negatively impacted
earnings, despite lower gross research and development spending. The
amounts capitalized during the quarter were $2.7 million compared to
$8.0 million in the prior quarter. Overall, we're pleased with the
progress we made during the quarter."
Paul L. Ruflin, Eclipsys president and CEO, said: "We continued
our progress in the marketplace in the fourth quarter of 2003 largely
because of the support and loyalty we have received from our customers
over the past 90 days. Our customers remain our top priority as we
focus on providing them with solutions that create value for their
organizations. We will continue to concentrate on growing our business
and have made a number of changes within the company that position us
for growth. We believe that 2004 will be a transition year for
Eclipsys as we capitalize on the market's strong interest in
healthcare information technology solutions and we begin to benefit
from our subscription-based business model."
Investor teleconference January 22
Eclipsys senior executives will discuss the results during an
investor community teleconference scheduled for 9 a.m. Eastern time
Thursday, January 22. Persons interested in participating in the
teleconference should call (888) 243-1745 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 January 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 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 September 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 Statements of Operations - Unaudited
(000's Omitted)
- ---------------------------------------------------------------------
Three Months Ended
December 31,
-------------------
2003 2002 Change $ Change %
-------------------------------------
Revenues:
Systems and services $60,334 $49,836 $10,498 21.1%
Hardware 5,973 3,612 2,361 65.4%
--------- --------- --------
Total revenues 66,307 53,448 12,859 24.1%
--------- --------- --------
Costs and expenses:
Cost of systems and services
revenues 41,202 31,996 9,206 28.8%
Cost of hardware revenues 4,855 2,978 1,877 63.0%
Sales and marketing 17,693 15,451 2,242 14.5%
Research and development 17,154 12,645 4,509 35.7%
General and administrative 3,681 3,958 (277) -7.0%
Depreciation and amortization 2,862 2,281 581 25.5%
--------- --------- --------
Total costs and expenses 87,447 69,309 18,138 26.2%
--------- --------- --------
Loss from operations (21,140) (15,861) (5,279) 33.3%
Interest income, net 287 1,009 (722) -71.6%
--------- --------- --------
Loss before income taxes (20,853) (14,852) (6,001) 40.4%
Provision for income taxes - - -
--------- --------- --------
Net Loss $(20,853) $(14,852) $(6,001) 40.4%
========= ========= ========
Earnings per share:
Basic loss per share $(0.46) $(0.33) $(0.13) 39.4%
========= ========= ========
Diluted loss per share $(0.46) $(0.33) $(0.13) 39.4%
========= ========= ========
Weighted average shares outstanding:
Basic 45,728 44,936
========= =========
Diluted 45,728 44,936
========= =========
Eclipsys Corporation
Consolidated Statements of Operations - Unaudited
(000's Omitted)
- ----------------------------------------------------------------------
Three Months Ended
September 30,
-------------------
2003 Change $ Change %
---------------------------
Revenues:
Systems and services $61,559 $(1,225) -2.0%
Hardware 6,591 (618) -9.4%
--------- ---------
Total revenues 68,150 (1,843) -2.7%
--------- ---------
Costs and expenses:
Cost of systems and services revenues 35,855 5,347 14.9%
Cost of hardware revenues 5,551 (696) -12.5%
Sales and marketing 17,766 (73) -0.4%
Research and development 14,633 2,521 17.2%
General and administrative 3,063 618 20.2%
Depreciation and amortization 2,761 101 3.7%
--------- ---------
Total costs and expenses 79,629 7,818 9.8%
--------- ---------
Loss from operations (11,479) (9,661) 84.2%
Interest income, net 412 (125) -30.3%
--------- ---------
Loss before income taxes (11,067) (9,786) 88.4%
Provision for income taxes -
--------- ---------
Net Loss $(11,067) $(9,786) 88.4%
========= =========
Earnings per share:
Basic loss per share $(0.24) $(0.22) 91.7%
========= =========
Diluted loss per share $(0.24) $(0.22) 91.7%
========= =========
Weighted average shares outstanding:
Basic 45,488
==========
Diluted 45,488
==========
Eclipsys Corporation
Consolidated Statements of Operations - Unaudited
(000's Omitted)
--------------------------------------------------------------------
Year Ended
December 31,
-------------------
2003 2002 Change $ Change %
--------------------------------------
Revenues:
Systems and services $233,971 $203,218 $30,753 15.1%
Hardware 20,708 14,850 5,858 39.4%
--------- --------- ---------
Total revenues 254,679 218,068 36,611 16.8%
--------- --------- ---------
Costs and expenses:
Cost of systems and services
revenues 143,761 119,044 24,717 20.8%
Cost of hardware revenues 17,252 12,270 4,982 40.6%
Sales and marketing 69,734 53,175 16,559 31.1%
Research and development 58,306 46,228 12,078 26.1%
General and administrative 13,528 12,434 1,094 8.8%
Depreciation and amortization 10,492 8,531 1,961 23.0%
--------- --------- ---------
Total costs and expenses 313,073 251,682 61,391 24.4%
--------- --------- ---------
Loss from operations (58,394) (33,614) (24,780) 73.7%
Interest income, net 2,430 4,016 (1,586) -39.5%
--------- --------- ---------
Loss before income taxes (55,964) (29,598) (26,366) 89.1%
Provision for income taxes - 165 (165) 100.0%
--------- --------- ---------
Net Loss $(55,964) $(29,763) $(26,201) 88.0%
========= ========= =========
Earnings per share:
Basic loss per share $(1.23) $(0.67) $(0.56) 83.6%
========= ========= =========
Diluted loss per share $(1.23) $(0.67) $(0.56) 83.6%
========= ========= =========
Weighted average shares outstanding:
Basic 45,405 44,711
========= =========
Diluted 45,405 44,711
========= =========
Eclipsys Corporation
Consolidated Balance Sheets - Unaudited
As of December 31, 2003 and December 31, 2002
(000's Omitted)
December 31, December 31,
2003 2002
----------- ------------
Assets
Current assets:
Cash and cash equivalents $151,683 $183,500
Accounts receivable, net 54,903 46,822
Inventory 530 656
Other current assets 14,993 16,921
----------- ------------
Total current assets 222,109 247,899
Property and equipment, net 32,304 26,800
Capitalized software development costs, net 25,260 16,375
Acquired technology, net - 267
Goodwill 454 454
Other assets 15,656 9,402
----------- ------------
Total assets $295,783 $301,197
=========== ============
Liabilities and Stockholders' Equity
Current liabilities:
Deferred revenue $91,782 $79,235
Accrued compensation costs 17,189 14,442
Other current liabilities 33,585 13,854
----------- ------------
Total current liabilities 142,556 107,531
Deferred revenue 9,390 843
Other long-term liabilities 684 226
Stockholders' equity:
Common stock 460 451
Additional paid-in-capital 411,634 405,380
Unearned stock compensation (795) (1,021)
Accumulated deficit (267,779) (211,814)
Accumulated other comprehensive loss (367) (399)
----------- ------------
Total stockholders' equity 143,153 192,597
----------- ------------
Total liabilities and stockholders' equity $295,783 $301,197
=========== ============
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