Exhibit 99.1
Eclipsys Releases Financial Results for the Quarter Ended Sept. 30, 2004
BOCA RATON, Fla.--(BUSINESS WIRE)--Oct. 28, 2004--Eclipsys
Corporation(R) (NASDAQ:ECLP), The Outcomes Company(R), today released
results for the quarter ended Sept. 30, 2004.
The following table summarizes selected financial data:
------------------------------- ------------------------
Three months ended Three months ended
Sept. 30, June 30,
------------------------------- ------------------------
2004 2003 Change $ Change % 2004 Change $ Change %
- --------------------------------------------- ------------------------
Revenues $79.8 $68.2 $11.6 17% $73.6 $6.2 8%
- --------------------------------------------- ------------------------
Loss per
share $(0.14)$(0.24) $0.10 42% $(0.21) $0.07 33%
- --------------------------------------------- ------------------------
-------------------------------
Nine months ended
Sept. 30,
---------------------------------
2004 2003 Change $ Change %
- -----------------------------------------------
Revenues $221.8 $188.4 $33.4 18%
- ---------------------------------------------
Loss per
share $(0.64) $(0.78) $0.14 18%
- ---------------------------------------------
Third quarter results
Third quarter 2004 revenues were $79.8 million compared to
revenues of $73.6 million in Q2'04. Net loss for the quarter was
$(6.7) million compared to a net loss of $(10.0) million in Q2'04.
Basic and diluted net loss per share was $(0.14) compared to $(0.21)
in Q2'04.
Operating activities generated $2.1 million of positive cash flows
in Q3'04. This represents a sequential improvement of $5.5 million as
of June 30, 2004. Cash, cash equivalents and marketable securities
were $123.0 million as of Sept. 30, 2004, down $2.5 million from
$125.5 million as of June 30, 2004. Days sales outstanding (DSOs) were
70 days as of Sept. 30, 2004, an increase of 4 days from the preceding
quarter. Deferred revenue (including current and long-term) was $115.0
million as of Sept. 30, 2004, a sequential increase of $13.6 million
from $101.4 million as of June 30, 2004.
"Eclipsys' third quarter results reflect that we have achieved our
goals of gradual and continued improvement on revenues, earnings, and
operating cash flows," said Paul L. Ruflin, Eclipsys president and
CEO. "Additionally, third quarter sales bookings were strong,
reflecting the healthcare industry's keen interest in information
technology and Eclipsys solutions as a means to address its
significant challenges. We expect our sales momentum to continue in
the fourth quarter and provide a solid foundation for next year."
Investor teleconference Oct. 28
Eclipsys senior executives will discuss the results during an
investor community teleconference scheduled for 8:30 a.m. Eastern time
Thursday, Oct. 28. Persons interested in participating in the
teleconference should call (888) 428-4480 within 15 minutes before the
conference is scheduled to begin. For listen-only mode, participants
can go to http://www.eclipsys.com, Investor Relations/News &
Events/Event Calendar 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 12:00 noon
Eastern time Oct. 28 by visiting http://www.eclipsys.com, Investor
Relations/News & Events/Event Calendar.
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 product 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, 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)
Three Months Ended
Sept. 30, Sept. 30,
2004 2003 Change $ Change %
-------------------------------------
Revenues:
Systems and services $71,352 $61,559 $9,793 16%
Hardware 8,463 6,591 1,872 28%
-------- --------- --------
Total revenues 79,815 68,150 11,665 17%
-------- --------- --------
Costs and expenses:
Cost of systems and services
revenues 42,371 35,855 6,516 18%
Cost of hardware revenues 7,311 5,551 1,760 32%
Sales and marketing 15,530 17,766 (2,236) -13%
Research and development 15,032 14,633 399 3%
General and administrative 3,281 3,063 218 7%
Depreciation and amortization 3,355 2,761 594 22%
-------- --------- --------
Total costs and expenses 86,880 79,629 7,251 9%
-------- --------- --------
Loss from operations (7,065) (11,479) 4,414 38%
Interest income, net 415 412 3 1%
-------- --------- --------
Loss before income taxes (6,650) (11,067) 4,417 40%
Provision for income taxes - - -
-------- --------- --------
Net loss $(6,650) $(11,067) $4,417 40%
======== ========= ========
Loss per share:
Basic loss per share $(0.14) $(0.24) $0.10 42%
======== ========= ========
Diluted loss per share $(0.14) $(0.24) $0.10 42%
======== ========= ========
Weighted average shares
outstanding:
Basic 46,671 45,488
======== =========
Diluted 46,671 45,488
======== =========
Eclipsys Corporation
Consolidated Statements of Operations - Unaudited
(000's Omitted)
Three Months Ended
June 30,
2004 Change $ Change %
-------- --------- ----------
Revenues:
Systems and services $68,597 $2,755 4%
Hardware 5,046 3,417 68%
-------- ---------
Total revenues 73,643 6,172 8%
-------- ---------
Costs and expenses:
Cost of systems and services
revenues 41,795 576 1%
Cost of hardware revenues 4,337 2,974 69%
Sales and marketing 15,458 72 0%
Research and development 14,536 496 3%
General and administrative 4,407 (1,126) -26%
Depreciation and amortization 3,295 60 2%
-------- ---------
Total costs and expenses 83,828 3,052 4%
-------- ---------
Loss from operations (10,185) 3,120 31%
Interest income, net 225 190 84%
-------- ---------
Loss before income taxes (9,960) 3,310 33%
-------- ---------
Provision for income taxes - -
-------- ---------
Net loss $(9,960) $3,310 33%
======== =========
Loss per share:
Basic loss per share $(0.21) $0.07 33%
======== =========
Diluted loss per share $(0.21) $0.07 33%
======== =========
Weighted average shares
outstanding:
Basic 46,573
========
Diluted 46,573
========
Eclipsys Corporation
Consolidated Statements of Operations - Unaudited
(000's Omitted)
Nine Months Ended
Sept. 30, Sept. 30,
2004 2003 Change $ Change %
--------------------------------------
Revenues:
Systems and services $201,756 $173,637 $28,119 16%
Hardware 20,086 14,735 5,351 36%
--------- --------- ---------
Total revenues 221,842 188,372 33,470 18%
--------- --------- ---------
Costs and expenses:
Cost of systems and services
revenues 124,023 102,559 21,464 21%
Cost of hardware revenues 17,282 12,398 4,884 39%
Sales and marketing 46,240 52,040 (5,800) -11%
Research and development 44,478 41,152 3,326 8%
General and administrative 10,856 9,847 1,009 10%
Depreciation and amortization 9,731 7,630 2,101 28%
--------- --------- ---------
Total costs and expenses 252,610 225,626 26,984 12%
--------- --------- ---------
Loss from operations (30,768) (37,254) 6,486 17%
Interest income, net 1,094 2,143 (1,049) -49%
--------- --------- ---------
Loss before income taxes (29,674) (35,111) 5,437 15%
Provision for income taxes - - -
--------- --------- ---------
Net loss $(29,674) $(35,111) $5,437 15%
========= ========= =========
Loss per share:
Basic loss per share $(0.64) $(0.78) $0.14 18%
========= ========= =========
Diluted loss per share $(0.64) $(0.78) $0.14 18%
========= ========= =========
Weighted average shares
outstanding:
Basic 46,459 45,283
========= =========
Diluted 46,459 45,283
========= =========
Eclipsys Corporation
Consolidated Balance Sheets - Unaudited
(000's Omitted)
September 30, December 31,
2004 2003
------------- ------------
Assets
Current assets:
Cash and cash equivalents $82,055 $151,683
Marketable securities 40,937 -
Accounts receivable, net 61,854 54,903
Inventory 1,961 530
Other current assets 13,559 14,993
------------ ------------
Total current assets 200,366 222,109
Property and equipment, net 33,590 32,304
Capitalized software development costs, net 28,617 25,260
Goodwill and intangible assets 5,051 454
Other assets 15,713 15,656
------------ ------------
Total assets $283,337 $295,783
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Deferred revenue $104,218 $91,782
Accrued compensation costs 12,892 17,189
Other current liabilities 33,104 33,584
------------ ------------
Total current liabilities 150,214 142,555
Deferred revenue 10,774 9,390
Other long-term liabilities 134 684
Stockholders' equity:
Common stock 469 460
Additional paid-in-capital 421,695 411,634
Unearned stock compensation (2,213) (795)
Accumulated deficit (297,454) (267,778)
Accumulated other comprehensive loss (282) (367)
------------ ------------
Total stockholders' equity 122,215 143,154
------------ ------------
Total liabilities and stockholders' equity $283,337 $295,783
============ ============
Eclipsys Corporation
Statement of Cash Flows - Unaudited
(000's omitted)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
------------------- ------------------
2004 2003 2004 2003
---- ---- ---- ----
Operating Activities:
Net loss $(6,650) $(11,067) $(29,674) $(35,111)
Adjustments to reconcile
net loss to net cash
provided by (used in)
operating activities
Depreciation and
Amortization 7,468 5,760 19,719 15,762
Write off capitalized
software - 1,200 - 1,200
Bad debt provision 350 975 1,350 2,175
Stock Compensation 132 56 293 169
Changes in assets and
liabilities, net of
acquisitions
Accounts receivable (8,195) (2,195) (8,301) (4,125)
Inventory (247) 32 (1,395) (3)
Other current assets (1,705) 656 1,434 3,422
Other assets (350) (3,917) (2,800) (7,765)
Deferred revenue 13,550 6,787 13,819 14,026
Accrued compensation (2,790) (2,716) (4,297) (2,484)
Other current
liabilities 521 5,275 (480) 12,495
Other liabilities (12) (80) (549) 449
--------- -------- --------- --------
Total adjustments 8,722 11,833 18,793 35,321
--------- -------- --------- --------
Net cash provided by
(used in) operating
activities 2,072 766 (10,881) 210
--------- -------- --------- --------
Investing Activities:
Purchase of fixed assets (3,854) (6,534) (10,649) (13,186)
Purchase of marketable
securities (119) 11,332 (40,937) (41,572)
Capitalized software
development costs (2,084) (8,011) (10,603) (15,574)
Acquisitions, net of cash - - (2,500) -
--------- -------- --------- --------
Net cash used in
investing activities (6,057) (3,213) (64,689) (70,332)
------------------- -------------------
Financing Activities:
Exercise of stock options 1,278 1,092 4,192 2,043
Employee stock purchase plan - 631 1,664 1,910
--------- -------- --------- --------
Net cash provided by
financing activities 1,278 1,723 5,856 3,953
--------- -------- --------- --------
Effect of exchange rate
changes on cash and
cash equivalents 106 (12) 86 30
Net decrease in cash and cash
equivalents (2,601) (736) (69,628) (66,139)
========= ======== ========= ========
Cash and cash equivalents,
beginning of period 84,656 118,097 151,683 183,500
--------- -------- --------- --------
Cash and cash equivalents,
end of period $82,055 $117,361 $82,055 $117,361
========= ======== ========= ========
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