Exhibit 99.1
Eclipsys Releases Financial Results for the
Quarter and Year Ended December 31, 2004
BOCA RATON, Fla.--(BUSINESS WIRE)--Feb. 8, 2005--Eclipsys
Corporation(R) (NASDAQ:ECLP), The Outcomes Company(R), today released
results for the quarter ended December 31, 2004.
The following table summarizes selected financial data:
Three months ended Dec. 31 Three months ended Sept.30
---------------------------------- --------------------------
2004 2003 Change $ Change % 2004 Change $ Change %
- -------- ------- ------- --------- -------- ------- --------- --------
Revenues $87.2 $66.3 $20.9 31.6% $79.8 $7.4 9.3%
- -------- ------- ------- --------- -------- ------- --------- --------
Loss per
share $(0.06) $(0.46) $0.40 86.9% $(0.14) $0.08 57.1%
- -------- ------- ------- --------- -------- ------- --------- --------
Year ended Dec. 31
----------------------------------
2004 2003 Change $ Change %
- -------- ------- ------- --------- --------
Revenues $309.1 $254.7 $54.4 21.4%
- -------- ------- ------- --------- --------
Loss per
share $(0.70) $(1.23) $0.53 43.1%
- -------- ------- ------- --------- --------
Fourth quarter and year end results Fourth quarter 2004 revenues
were $87.2 million compared to revenues of $79.8 million in Q3'04. Net
loss for the quarter was $(2.9) million compared to a net loss of
$(6.7) million in Q3'04. Basic and diluted net loss per share was
$(0.06) compared to $(0.14) in Q3'04.
For the year, revenues were $309.1 million compared to revenues of
$254.7 million in 2003. Net loss for the year was $(32.6) million
compared to $(56.0) million in 2003, this represents a $23.4 million,
or 41.8%, improvement over last year. Basic and diluted net loss per
share was $(0.70) compared to $(1.23), a $0.53 improvement over 2003.
Operating activities generated $7.5 million of positive cash flows
in Q4'04, this represents an $11.3 million improvement compared to Q4'
03. Cash, cash equivalents and marketable securities were $122.0
million as of Dec. 31, 2004, a decrease of $29.7 million from $151.7
million as of Dec. 31, 2003. Days sales outstanding (DSOs) were 67
days as of Dec. 31, 2004, a decrease of 3 days from the preceding
quarter and a decrease of 8 days compared to last year. Deferred
revenue (including current and long-term) was $122.7 million as of
Dec. 31, 2004, an increase of $21.5 million from $101.2 million as of
Dec. 31, 2003.
"Eclipsys made considerable progress on many fronts in 2004," said
Paul Ruflin, president and CEO of Eclipsys. "We introduced innovative
new clinical, financial and management products and services to the
market, won many new customers, successfully implemented a record
number of core clinical systems, and closed some of our largest deals
ever. We also significantly improved our financial performance and
strengthened our senior management team, which we believe provides a
strong foundation for future growth."
Investor teleconference Feb. 8
Eclipsys senior executives will discuss the results during an
investor community teleconference scheduled for 8:30 a.m. Eastern time
Tuesday, Feb. 8. 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 at 12:00 noon
Eastern time Feb. 8 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 September 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)
Year Ended
December 31,
--------------------------------------
2004 2003 Change $ Change %
--------- --------- --------- --------
Revenues:
Systems and services $282,124 $233,971 $48,153 20.6%
Hardware 26,951 20,708 6,243 30.1%
--------- --------- ---------
Total revenues 309,075 254,679 54,396 21.4%
--------- --------- ---------
Costs and expenses:
Cost of systems and services
revenues 168,393 143,276 25,117 17.5%
Cost of hardware revenues 22,949 17,252 5,697 33.0%
Sales and marketing 65,024 70,381 (5,357) -7.6%
Research and development 58,095 58,144 (49) -0.1%
General and administrative 15,524 13,528 1,996 14.8%
Depreciation and
amortization 13,284 10,492 2,792 26.6%
--------- --------- ---------
Total costs and expenses 343,269 313,073 30,196 9.6%
--------- --------- ---------
Loss from operations (34,194) (58,394) 24,200 41.4%
Interest income, net 1,629 2,430 (801) -33.0%
--------- --------- ---------
Loss before income taxes (32,565) (55,964) 23,399 41.8%
Provision for income taxes - - -
--------- --------- ---------
Net loss $(32,565) $(55,964) $23,399 41.8%
========= ========= =========
Earnings per share:
Basic loss per share $(0.70) $(1.23) $0.53 43.1%
========= ========= =========
Diluted loss per share $(0.70) $(1.23) $0.53 43.1%
========= ========= =========
Weighted average shares
outstanding:
Basic 46,587 45,405
========= =========
Diluted 46,587 45,405
========= =========
Eclipsys Corporation
Consolidated Statements of Operations - Unaudited
(000's Omitted)
Three Months Ended
December 31,
------------------- --------- --------
2004 2003 Change $ Change %
--------- --------- --------- --------
Revenues:
Systems and services $80,368 $60,334 $20,034 33.2%
Hardware 6,865 5,973 892 14.9%
--------- ---------
Total revenues 87,233 66,307 20,926 31.6%
--------- ---------
Costs and expenses:
Cost of systems and services
revenues 44,371 40,716 3,655 9.0%
Cost of hardware revenues 5,667 4,855 812 16.7%
Sales and marketing 18,784 18,341 443 2.4%
Research and development 13,617 16,992 (3,375) -19.9%
General and administrative 4,668 3,681 987 26.8%
Depreciation and
amortization 3,553 2,862 691 24.1%
--------- ---------
Total costs and expenses 90,660 87,447 3,213 3.7%
--------- ---------
Loss from operations (3,427) (21,140) 17,713 83.8%
Interest income, net 536 287 249 86.8%
--------- ---------
Loss before income taxes (2,891) (20,853) 17,962 86.1%
Provision for income taxes - - -
--------- ---------
Net loss $(2,891) $(20,853) $17,962 86.1%
========= =========
Earnings per share:
Basic loss per share $(0.06) $(0.46) $0.40 86.9%
========= ========= =========
Diluted loss per share $(0.06) $(0.46) $0.40 86.9%
========= ========= =========
Weighted average shares
outstanding:
Basic 46,937 45,728
========= =========
Diluted 46,937 45,728
========= =========
Three Months Ended
September 30,
------------------- --------
2004 Change $ Change %
--------- --------- --------
Revenues:
Systems and services $71,352 $9,016 12.6%
Hardware 8,463 (1,598) -18.9%
--------- ---------
Total revenues 79,815 7,418 9.3%
--------- ---------
Costs and expenses:
Cost of systems and services revenues 42,371 2,000 4.7%
Cost of hardware revenues 7,311 (1,644) -22.5%
Sales and marketing 15,530 3,254 21.0%
Research and development 15,032 (1,415) -9.4%
General and administrative 3,281 1,387 42.3%
Depreciation and amortization 3,355 198 5.9%
--------- ---------
Total costs and expenses 86,880 3,780 4.4%
--------- ---------
Loss from operations (7,065) 3,638 51.5%
Interest income, net 415 121 29.2%
--------- ---------
Loss before income taxes (6,650) 3,759 56.5%
Provision for income taxes -
--------- ---------
Net loss $(6,650) $3,759 56.5%
========= =========
Earnings per share:
Basic loss per share $(0.14) $0.08 57.1%
========= =========
Diluted loss per share $(0.14) $0.08 57.1%
========= =========
Weighted average shares
outstanding:
Basic 46,625
=========
Diluted 46,625
=========
Eclipsys Corporation
Consolidated Balance Sheets - Unaudited
As of December 30, 2004 and December 31, 2003
(000's Omitted)
December 31, December 31,
2004 2003
-------------- --------------
Assets
Current assets:
Cash and cash equivalents $122,031 $151,683
Accounts receivable, net 64,862 54,903
Inventory 1,644 530
Other current assets 15,586 14,993
-------------- --------------
Total current assets 204,123 222,109
Property and equipment, net 35,002 32,304
Capitalized software development costs,
net 29,819 25,260
Acquired technology, net 886 -
Goodwill 6,667 454
Other assets 14,923 15,656
-------------- --------------
Total assets $291,420 $295,783
============== ==============
Liabilities and Stockholders' Equity
Current liabilities:
Deferred revenue $106,804 $91,782
Accrued compensation costs 12,738 17,189
Other current liabilities 32,587 33,584
-------------- --------------
Total current liabilities 152,129 142,555
Deferred revenue 15,892 9,390
Other long-term liabilities 122 684
Stockholders' equity:
Common stock 473 460
Additional paid-in-capital 429,001 411,634
Unearned stock compensation (5,641) (795)
Accumulated deficit (300,344) (267,778)
Accumulated other comprehensive loss (212) (367)
-------------- --------------
Total stockholders' equity 123,277 143,154
-------------- --------------
Total liabilities and stockholders'
equity $291,420 $295,783
============== ==============
Eclipsys Corporation
Statement of Cash Flow - Unaudited
(000's omitted)
Three Months Ended Twelve Months Ended
------------------ -------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2004 2003 2004 2003
--------- -------- ---------- --------
Operating Activities:
Net increase (loss) $(2,891) $(20,854) $(32,565) $(55,964)
Adjustments to reconcile net
loss to net cash provided
by (used in) operating
activities
Depreciation and
Amortization 7,691 6,140 27,410 21,902
Write-off of Capitalized
Software 1,200
Bad debt provision 450 450 1,800 2,625
Loss on sale of marketable
securities 258 131 424
Stock Compensation 184 56 477 226
Accounts receivable (3,219) (6,581) (11,520) (10,706)
Inventory 316 129 (1,079) 126
Other current assets (1,968) (1,494) (534) 1,928
Other assets 76 (1,467) (2,724) (9,232)
Deferred revenue 7,584 7,068 21,403 21,094
Accrued compensation (180) 5,232 (4,477)
Other current
liabilities (527) 7,234 (1,007) 22,477
Other liabilities (13) 9 (562) 458
Total adjustments 10,394 17,034 29,318 52,522
Net cash provided by
(used in) operating
activities 7,503 (3,820) (3,247) (3,442)
Investing Activities:
Purchase of fixed assets (4,684) (2,811) (15,333) (15,997)
Purchase of marketable
securities (102) (147) (41,170) (73,785)
Sale of investments - -
Proceeds from sale of
marketable securities 41,039 41,461 41,039 73,361
Capitalized software
development costs (4,591) (2,675) (15,194) (18,249)
Acquisitions, net of cash (2,958) (5,458) -
Net cash used in
investing activities 28,704 35,828 (36,116) (34,670)
Financing Activities:
Exercise of stock options 3,699 1,511 7,891 3,554
Employee stock purchase plan - 802 1,664 2,709
Accretion - -
Net cash provided by
financing activities 3,699 2,313 9,555 6,263
Effect of exchange Rate
changes on cash and cash
equivalents 70 1 156 32
Net increase (decrease) in
cash and cash equivalents 39,976 34,322 (29,652) (31,817)
Cash and cash equivalents,
beginning of period 82,055 117,361 151,683 183,500
Cash and cash equivalents, end
of period $122,031 $151,683 $122,031 $151,683
CONTACT: Eclipsys Corporation, Boca Raton
Michael E. Donner, 561-322-4485
michael.donner@eclipsys.com
or
Investors:
Robert J. Colletti, 561-322-4650
investor.relations@eclipsys.com