Exhibit 99.1
Eclipsys Releases Financial Results for the Quarter Ended
June 30, 2004
BOCA RATON, Fla.--(BUSINESS WIRE)--July 28, 2004--Eclipsys
Corporation(R) (Nasdaq:ECLP), The Outcomes Company(R), today released
results for the quarter ended June 30, 2004.
The following table summarizes selected financial data:
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In millions, except per share and DSO data
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Three months ended June 30,
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2004 2003 Change $ Change %
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Revenues $73.6 $63.4 $10.2 16.1%
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Net loss (10.0) (11.0) 1.0 9.1%
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Loss per share $(0.21) $(0.24) $0.03 12.5%
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Operating cash flows (3.4) (1.7) (1.7) -100%
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Purchase of fixed assets 2.8 4.0 (1.2) -30.0%
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Capitalized software
development costs 3.9 4.9 (1.0) -20.4%
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Cash & marketable
securities 125.5 170.7 (45.2) -26.5%
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Days sales outstanding 66 68 (2) -2.9%
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Deferred revenue 101.4 87.3 14.1 16.2%
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Three months ended March 31,
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2004 Change $ Change %
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Revenues $68.4 $5.2 7.6%
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Net loss (13.1) 3.1 23.7%
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Loss per share $(0.28) $0.07 25.0%
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Operating cash flows (9.5) 6.1 64.2%
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Purchase of fixed assets 4.0 (1.2) -30.0%
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Capitalized software
development costs 4.6 0.7 15.2%
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Cash & marketable securities 134.2 (8.7) -6.5%
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Days sales outstanding 65 1 1.5%
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Deferred revenue 98.4 3.0 3.0%
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Six months ended June 30,
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2004 2003 Change $ Change %
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Revenues $142.0 $120.2 $21.8 18.1%
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Net loss (23.0) (24.0) 1.0 4.2%
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Loss per share $(0.50) $(0.53) .03 5.7%
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Operating cash flows (13.0) (.56) (12.4) -2214.3%
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Purchase of fixed assets 6.8 6.7 0.1 1.5%
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Capitalized software
development costs 8.5 7.6 0.9 11.8%
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Second quarter results
Second quarter 2004 revenues were $73.6 million compared to
revenues of $63.4 million in Q2'03 and revenues of $68.4 million in
Q1'04. Net loss for the quarter was $(10.0) million, compared to a net
loss of $(11.0) million in the same period a year ago and a net loss
of $(13.1) million in Q1'04. Basic and diluted net loss per share was
$(0.21), compared to $(0.24) in Q2'03 and $(0.28) in Q1'04.
Operating cash flows were $(3.4) million, compared to $(1.7)
million in Q2'03 and $(9.5) million in Q1'04. Cash, cash equivalents
and marketable securities were $125.5 million as of June 30, 2004,
down from $170.7 million as of June 30, 2003 and down sequentially
from $134.2 million as of March 31, 2004. Days sales outstanding
(DSOs) were 66 as of June 30, 2004, a decrease of 2 days from June 30,
2003, and an increase of 1 day from the preceding quarter. Deferred
revenue (including current and long-term) was $101.4 million as of
June 30, 2004, compared to $87.3 million as of June 30, 2003. Deferred
revenue increased sequentially by $3.0 million from $98.4 million as
of March 31, 2004.
"Overall, we are pleased with the progress we continue to make in
executing our business strategy," said Paul L. Ruflin, Eclipsys
president and CEO. "The recent launch of the latest release of our
award-winning clinical product, Sunrise Clinical Manager 3.5 XA, and
our activity and recent successes in the marketplace provide a
strong foundation for a successful 2004."
Investor teleconference July 28
Eclipsys senior executives will discuss the results during an
investor community teleconference scheduled for 8:30 a.m. Eastern time
Wednesday, July 28. Persons interested in participating in the
teleconference should call (888) 428-4479 within 15 minutes before the
conference is slated to begin. For listen-only mode, participants can
go to www.eclipsys.com about 15 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 11:30
a.m. Eastern time July 28 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 March 31, 2004. Eclipsys, Eclipsys Corporation
and The Outcomes Company are registered trademarks of Eclipsys
Corporation. Sunrise and XA 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)
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Three Months Ended
June 30, June 30,
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2004 2003 Change $ Change %
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Revenues:
Systems and services $68,597 $58,381 $10,216 17%
Hardware 5,046 5,005 41 1%
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Total revenues 73,643 63,386 10,257 16%
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Costs and expenses:
Cost of systems and
services revenues 41,796 33,900 7,896 23%
Cost of hardware revenues 4,337 4,163 174 4%
Sales and marketing 15,458 17,719 (2,261) -13%
Research and development 14,536 13,535 1,001 7%
General and administrative 4,407 3,420 987 29%
Depreciation and
amortization 3,295 2,500 795 32%
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Total costs and
expenses 83,829 75,237 8,592 11%
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Loss from operations (10,186) (11,851) 1,665 14%
Interest income, net 225 831 (606) -73%
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Loss before income taxes (9,961) (11,020) 1,059 10%
Provision for income taxes - - -
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Net loss $(9,961) $(11,020) $1,059 10%
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Loss per share:
Basic loss per share $(0.21) $(0.24) $0.03 13%
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Diluted loss per share $(0.21) $(0.24) $0.03 13%
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Weighted average shares outstanding:
Basic 46,573 45,289
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Diluted 46,573 45,289
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Three Months Ended
March 31,
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2004 Change $ Change %
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Revenues:
Systems and services $61,807 $6,790 11%
Hardware 6,577 (1,531) -23%
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Total revenues 68,384 5,259 8%
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Costs and expenses:
Cost of systems and
services revenues 39,857 1,939 5%
Cost of hardware revenues 5,634 (1,297) -23%
Sales and marketing 15,252 206 1%
Research and development 14,911 (375) -3%
General and administrative 3,167 1,240 39%
Depreciation and
amortization 3,080 215 7%
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Total costs and expenses 81,901 1,928 2%
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Loss from operations (13,517) 3,331 25%
Interest income, net 454 (229) -50%
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Loss before income taxes (13,063) 3,102 24%
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Provision for income taxes - -
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Net loss $(13,063) $3,102 24%
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Loss per share:
Basic loss per share $(0.28) $0.07 25%
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Diluted loss per share $(0.28) $0.07 25%
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Weighted average shares outstanding:
Basic 46,115
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Diluted 46,115
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Eclipsys Corporation
Consolidated Statements of Operations - Unaudited
(000's Omitted)
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Six Months Ended
June 30, June 30,
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2004 2003 Change $ Change %
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Revenues:
Systems and services $130,404 $112,078 $18,326 16%
Hardware 11,623 8,144 3,479 43%
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Total revenues 142,027 120,222 21,805 18%
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Costs and expenses:
Cost of systems and
services revenues 81,651 66,704 14,947 22%
Cost of hardware revenues 9,971 6,847 3,124 46%
Sales and marketing 30,710 34,274 (3,564) -10%
Research and development 29,446 26,519 2,927 11%
General and
administrative 7,575 6,784 791 12%
Depreciation and
amortization 6,376 4,869 1,507 31%
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Total costs and
expenses 165,729 145,997 19,732 14%
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Loss from operations (23,702) (25,775) 2,073 8%
Interest income, net 679 1,731 (1,052) -61%
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Loss before income taxes (23,023) (24,044) 1,021 4%
Provision for income taxes - - -
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Net loss $(23,023) $(24,044) $1,021 4%
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Loss per share:
Basic loss per share $(0.50) $(0.53) $0.03 6%
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Diluted loss per share $(0.50) $(0.53) $0.03 6%
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Weighted average shares outstanding:
Basic 46,228 45,179
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Diluted 46,228 45,179
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Eclipsys Corporation
Consolidated Balance Sheets - Unaudited
(000's Omitted)
June 30, December 31,
2004 2003
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Assets
Current assets:
Cash and cash equivalents $84,656 $151,683
Marketable securities 40,818 -
Accounts receivable, net 54,009 54,903
Inventory 1,712 530
Other current assets 11,854 14,993
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Total current assets 193,049 222,109
Property and equipment, net 32,949 32,304
Capitalized software development
costs, net 29,951 25,260
Goodwill and intangible assets 5,193 454
Other assets 16,060 15,656
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Total assets $277,202 $295,783
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Liabilities and Stockholders' Equity
Current liabilities:
Deferred revenue $92,620 $91,782
Accrued compensation costs 15,681 17,189
Other current liabilities 32,583 33,584
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Total current liabilities 140,884 142,555
Deferred revenue 8,821 9,390
Other long-term liabilities 147 684
Stockholders' equity:
Common stock 467 460
Additional paid-in-capital 418,756 411,634
Unearned stock compensation (683) (795)
Accumulated deficit (290,803) (267,778)
Accumulated other comprehensive loss (387) (367)
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Total stockholders' equity 127,350 143,154
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Total liabilities and
stockholders' equity $277,202 $295,783
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CONTACT: Eclipsys Corporation, Boca Raton
Judy Barnett (media), 561-322-4351
judy.barnett@eclipsys.com
or
Robert J. Colletti, CFO (investors), 561-322-4650
investor.relations@eclipsys.com