Exhibit 99.1
ECLIPSYS ANNOUNCES FINANCIAL RESULTS FOR SECOND QUARTER
AND SIX MONTHS ENDED JUNE 30, 2005
- REVENUES IMPROVE AND LOSS CONTINUES TO NARROW -
BOCA RATON, Fla., July 26 /PRNewswire-FirstCall/ -- Eclipsys Corporation(R)
(Nasdaq: ECLP), The Outcomes Company(R), today announced results for the quarter
and six months ended June 30, 2005.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050209/FLW006LOGO )
The following table summarizes selected financial data:
In thousands, except per Share data
Three months ending June 30,
-------------------------------------------------
2005 2004 Changes $ Changes %
---------- ---------- ---------- ----------
Revenues $ 95,865 $ 73,643 $ 22,222 30.2%
Loss per Share $ (0.05) $ (0.21) $ 0.16 76.2%
In thousands, except per Share data
Six months ending June 30,
-------------------------------------------------
2005 2004 Changes $ Changes %
---------- ---------- ---------- ----------
Revenues $ 180,300 $ 142,027 $ 38,273 26.9%
Loss per Share $ (0.20) $ (0.50) $ 0.30 60.0%
Second-quarter results
Second-quarter 2005 revenues were $95.9 million, compared to revenues of
$73.6 million in Q2'04, an increase of 30.2 percent. Net loss for the quarter
was $(2.5) million compared to a net loss of $(10.0) million in Q2'04. This
represents a $7.5-million or 75.1-percent reduction in net loss from the same
period in the prior year. Basic and diluted net loss per share were $(0.05)
compared to $(0.21) in Q2'04. The operating results for second-quarter 2005
included $2.2 million or $0.05 per share of costs associated with the transition
of the company's former chief executive officer.
Operating cash flows were $1.7 million in the quarter, compared to $(3.3)
million in Q2'04; this represents a $5.0-million improvement compared to Q2'04.
Cash, cash equivalents and marketable securities were $108.4 million as of June
30, 2005. Days sales outstanding (DSOs) were 61 days, a decrease of 5 days from
the prior year. Deferred revenue (including current and long-term) was $120.9
million as of June 30, 2005, compared to $101.4 million as of June 30, 2004.
Six months ended June 30, 2005
For the six months ended June 30, 2005, revenues were $180.3 million,
compared to $142.0 million in the same period in 2004, a 26.9-percent increase.
Net loss for the first half of 2005 was $(9.6) million, compared to $(23.0)
million in the first six months of 2004; this represents a $13.4-million or
58.1-percent improvement over 2004. Basic and diluted net loss per share for the
period was $(0.20), compared to $(0.50) in the first half of 2004, a 60-percent
improvement.
Progress continues
"In Q2, we continued to make progress in building a more cohesive,
customer-focused and operationally efficient organization," said Eugene V. Fife,
Eclipsys chairman, president and chief executive officer. "This is reflected in
our upward trending in customer satisfaction, our continued focus on expanding
key markets and our ability to cross sell further into our client base. As we
enter the second half of 2005, Eclipsys will continue to build upon the solid
start we made in the first half of the year."
Investor teleconference today
Eclipsys senior executives will discuss the results on a teleconference for
investors scheduled for 8:30 a.m. Eastern time today, Tuesday, July 26. Persons
interested in participating in the teleconference should call (866) 254-5941
approximately 15 minutes before the conference is slated to begin. For
listen-only mode, participants can go to http://www.eclipsys.com prior to the
conference call to register and download the necessary audio software. An audio
replay will be available for approximately 48 hours beginning at approximately
12 noon Eastern time July 26 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 email info@eclipsys.com.
Forward-looking statements
Statements in this news release, and management's comments and responses to
questions during the earnings call referenced in this release, concerning future
results, performance or expectations, the results of the company's development
efforts, and the benefits to clients of Eclipsys solutions are forward-looking
statements. Actual results may differ from those projected due to a variety of
risks and uncertainties. Sales may be slower than expected due to market
conditions, competition, and other factors. Costs may be greater than
anticipated due to the potential need to increase spending to ensure performance
in accordance with commitments to clients. Software development may take longer
and cost more than expected, and incorporation of anticipated features and
functionality may be delayed, due to various factors including programming and
integration challenges and resource constraints. Implementation and
customization of Eclipsys software is complex and time-consuming. Contract
results depend upon a variety of factors and can vary by client. Each client's
circumstances are unique and may include unforeseen issues that make it more
difficult than anticipated to implement or derive benefit from software,
outsourcing or consulting services. The success and timeliness of the company's
services often depend at least in part upon client involvement, which can be
difficult to control. Eclipsys is required to meet specified performance
standards, and client contracts can be terminated or their scope reduced under
certain circumstances. More information about company risks is available in
recent Form 10-K, 10-Q and other filings made by Eclipsys from time to time with
the Securities and Exchange Commission. Special attention is directed to the
portions of those documents entitled "Risk Factors" and "Management's Discussion
and Analysis of Financial Condition and Results of Operations."
Eclipsys
Michael E. Donner
SVP & Chief Marketing Officer (media)
(561) 322-4485
michael.donner@eclipsys.com
Robert J. Colletti
SVP & Chief Financial Officer (investors)
(561) 322-4655
investor.relations@eclipsys.com
Eclipsys Corporation
Consolidated Statements of Operations - Unaudited
(000's Omitted)
Three Months Ended
----------------------------------------------------
June 30, June 30,
2005 2004 Change $ Change %
---------- ---------- ---------- ----------
Revenues:
Systems and services $ 91,557 $ 68,597 $ 22,960 33.5%
Hardware 4,308 5,046 (738) -14.6%
Total revenues 95,865 73,643 22,222 30.2%
Costs and expenses:
Cost of systems and services
revenues 55,248 41,795 13,453 32.2%
Cost of hardware revenues 3,557 4,337 (780) -18.0%
Sales and marketing 16,196 15,458 738 4.8%
Research and development 13,974 14,536 (562) -3.9%
General and administrative 6,511 4,407 2,104 47.7%
Depreciation and amortization 3,583 3,295 288 8.7%
Total costs and expenses 99,069 83,828 15,241 18.2%
Loss from operations (3,204) (10,185) 6,981 68.5%
Interest income, net 719 225 494 219.6%
Loss before income taxes (2,485) (9,960) 7,475 75.1%
Provision for income taxes -- -- --
Net loss $ (2,485) $ (9,960) $ 7,475 75.1%
Loss per share:
Basic loss per share $ (0.05) $ (0.21) $ 0.16 76.2%
Diluted loss per share $ (0.05) $ (0.21) $ 0.16 76.2%
Weighted average shares
outstanding:
Basic 47,629 46,573
Diluted 47,629 46,573
Eclipsys Corporation
Consolidated Statements of Operations - Unaudited
(000's Omitted)
Six Months Ended
----------------------------------------------------
June 30, June 30,
2005 2004 Change $ Change %
---------- ---------- ---------- ----------
Revenues:
Systems and services $ 174,685 $ 130,404 $ 44,281 34.0%
Hardware 5,615 11,623 (6,008) -51.7%
Total revenues 180,300 142,027 38,273 26.9%
Costs and expenses:
Cost of systems and services
revenues 107,513 81,133 26,380 32.5%
Cost of hardware revenues 4,658 9,971 (5,313) -53.3%
Sales and marketing 34,372 31,399 2,973 9.5%
Research and development 26,550 29,273 (2,723) -9.3%
General and administrative 10,867 7,576 3,291 43.4%
Depreciation and
amortization 7,266 6,377 889 13.9%
Total costs and expenses 191,226 165,729 25,497 15.4%
Loss from operations (10,926) (23,702) 12,776 53.9%
Interest income, net 1,280 679 601 88.5%
Loss before income taxes (9,646) (23,023) 13,377 58.1%
Provision for income taxes -- -- --
Net loss $ (9,646) $ (23,023) $ 13,377 58.1%
Loss per share:
Basic loss per share $ (0.20) $ (0.50) $ 0.30 60.0%
Diluted loss per share $ (0.20) $ (0.50) $ 0.30 60.0%
Weighted average shares
outstanding:
Basic 47,444 46,228
Diluted 47,444 46,228
Eclipsys Corporation
Statement of Cash Flow - Unaudited
(000's omitted)
Three Months Ended Six Months Ending
------------------------ ------------------------
June 30, June 30,
------------------------ ------------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Operating Activities:
Net increase (loss) $ (2,485) $ (9,960) $ (9,646) $ (23,023)
Adjustments to
reconcile net loss to
net cash provided by
(used in) operating
activities
Depreciation and
Amortization 8,300 6,226 16,106 12,251
Bad debt provision 600 450 1,050 1,000
Loss on sale of
marketable securities -- 131 -- 131
Stock Compensation 734 105 1,150 161
Accounts
receivable (6,483) (4,986) (1,135) (106)
Inventory (108) 21 (28) (1,148)
Other current
assets 1,107 966 (2,337) 3,139
Other assets (1,095) (459) (9,920) (2,450)
Deferred revenue (4,034) 3,027 (1,755) 269
Accrued
compensation 2,498 2,525 3,763 (1,508)
Other current
liabilities 1,938 (1,334) (3,745) (1,001)
Other liabilities 727 (5) 1,143 (537)
Total adjustments 4,184 6,667 4,292 10,201
Net cash provided
by (used in)
operating
activities 1,699 (3,293) (5,354) (12,822)
Investing Activities:
Purchase of fixed
assets (2,191) (2,777) (6,316) (6,795)
Purchase of marketable
securities (21,848) (81,115) (159,866) (165,130)
Proceed from Sale of
Marketable securities 21,554 80,974 122,712 124,181
Capitalized software
development costs (3,207) (3,881) (9,634) (8,519)
Acquisitions, net of
cash (20) -- (20) (2,500)
Net cash used in
investing activities (5,712) (6,799) (53,124) (58,763)
Financing Activities:
Exercise of stock options 5,926 497 7,623 2,914
Employee stock purchase plan -- 882 -- 1,664
Accretion -- -- -- --
Net cash provided by
financing activities 5,926 1,379 7,623 4,578
Effect of exchange Rate
changes on cash and
cash equivalents 8 (9) 89 -20
Net increase (decrease) in
cash and cash equivalents 1,921 (8,722) (50,766) (67,027)
Cash and cash equivalents,
beginning of period $ 69,345 $ 68,316 $ 122,031 $ 151,683
Cash and cash equivalents,
end of period 71,265 84,656 71,265 84,656
Marketable Securities 37,154 40,818 37,154 40,818
Total Cash $ 108,419 $ 125,474 $ 108,419 $ 125,474
Eclipsys Corporation
Consolidated Balance Sheets - Unaudited
(000's Omitted)
June 30, December 31,
2005 2004
---------- ------------
Assets
Current assets:
Cash and cash equivalents $ 71,265 $ 122,031
Marketable securities 37,154
Accounts receivable, net 64,947 64,862
Inventory 1,672 1,644
Other current assets 17,923 15,586
Total current assets 192,961 204,123
Property and equipment, net 34,499 35,002
Capitalized software
development costs, net 32,335 29,819
Acquired technology, net 736 886
Goodwill and other
intangibles assets 6,248 6,667
Other assets 23,264 14,923
Total assets $ 290,043 $ 291,420
Liabilities and Stockholders'
Equity
Current liabilities:
Deferred revenue $ 102,083 $ 106,804
Accrued compensation
costs 16,501 12,738
Other current
liabilities 28,842 32,587
Total current
liabilities 147,426 152,129
Deferred revenue 18,858 15,892
Other long-term
liabilities 1,266 122
Stockholders' equity: 122,493 123,277
Total liabilities and
stockholders' equity $ 290,043 $ 291,420
SOURCE Eclipsys Corporation
-0- 07/26/2005
/CONTACT: Media, Michael E. Donner, SVP & Chief Marketing Officer,
+1-561-322-4485, or michael.donner@eclipsys.com, or Investors, Robert J.
Colletti, SVP & Chief Financial Officer, +1-561-322-4655, or
investor.relations@eclipsys.com, both of Eclipsys/
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