Exhibit 99.1
[LOGO OF ECLIPSYS(R)]
The Outcomes Company(R)
ECLIPSYS RELEASES FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2005
Boca Raton, FL -- Oct. 27, 2005 -- Eclipsys Corporation(R) (NASDAQ: ECLP), The
Outcomes Company(R), today released results for the quarter ended September 30,
2005.
The following table summarizes selected financial data:
In thousands, except per share data
-----------------------------------------------------
Three months ended September 30,
-----------------------------------------------------
2005 2004 $ Change % Change
----------- ----------- ----------- -----------
Revenues $ 97,852 $ 79,815 $ 18,037 23%
Basic earnings (loss) per share $ 0.11 $ (0.14) $ 0.25 N/A
Diluted earnings (loss) per share $ 0.10 $ (0.14) $ 0.24 N/A
In thousands, except per share data
-----------------------------------------------------
Nine months ended September 30,
-----------------------------------------------------
2005 2004 $ Change % Change
----------- ----------- ----------- -----------
Revenues $ 278,151 $ 221,842 $ 56,309 25%
Basic earnings (loss) per share $ (0.10) $ (0.64) $ 0.54 84%
Diluted earnings (loss) per share $ (0.10) $ (0.64) $ 0.54 84%
THIRD QUARTER RESULTS
Third quarter 2005 revenues were $97.9 million compared to revenues of $79.8
million in Q3'04, an increase of $18.0 million or 23 percent. Net income for the
quarter was $5.1 million compared to a net loss of $6.7 million in Q3'04. This
represents an $11.8 million improvement. Basic and diluted earnings per share
were $0.11 and $0.10 compared to basic and diluted loss per share of $(0.14) in
Q3'04.
Operating cash flows were $8.8 million in the quarter, compared to $2.1 million
in Q3'04; this represents a $6.7 million improvement compared to Q3'04. Cash,
cash equivalents and marketable securities were $107.1 million as of September
30, 2005. Days sales outstanding (DSOs) were 69 days, a decrease of one day from
the prior year. Deferred revenue (including current and long-term) was $124.3
million as of September 30, 2005, compared to $115.0 million as of September 30,
2004.
"Directionally we are pleased with our quarterly results. Our operating
performance has steadily improved as we predicted earlier in the year," said
Eugene V. Fife, interim president and chief executive officer of Eclipsys.
"We are especially pleased at the successful recruitment of Andy Eckert as our
permanent President and CEO," continued Fife. "He brings a strong record of
achievement and knowledge of the industry. We look forward to his leadership in
the future."
INVESTOR TELECONFERENCE OCT. 27
Eclipsys senior executives will discuss the results during an investor community
teleconference scheduled for 8:30 a.m. Eastern time Thursday, Oct. 27. Persons
interested in participating in the teleconference should call (866) 254-5941 up
to 15 minutes prior to the start of the conference. For listen-only mode,
participants should go to www.eclipsys.com about 15 minutes prior to the
conference call to register and download the necessary audio software. An audio
replay will be available at www.eclipsys.com for approximately 48 hours
beginning at 12:00 noon Eastern Standard Time on Oct. 27.
1750 Clint Moore Road, Boca Raton, FL 33487 o phone 561.322.4321
o fax 561.322.4320 o info@eclipsys.com
ECLIPSYS RELEASES FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2005
OCTOBER 27, 2005
Page 2 of 2
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 www.eclipsys.com or e-mail
info@eclipsys.com.
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, Robert J. Colletti,
Chief Marketing Officer CFO (investors)
(561) 322-4485 (561) 322-4650
michael.donner@eclipsys.com investor.relations@eclipsys.com
ECLIPSYS RELEASES FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2005
OCTOBER 27, 2005
Page 3 of 3
Eclipsys Corporation
Consolidated Statement of Operations - Unaudited
(000's Omitted)
Three Months Ended
-----------------------------
September 30, September 30,
2005 2004 Change $ Change %
------------- ------------- ------------- -------------
Revenues:
Systems and services $ 94,806 $ 71,352 $ 23,454 33%
Hardware 3,046 8,463 (5,417) -64%
------------- ------------- -------------
Total revenues 97,852 79,815 18,037 23%
------------- ------------- -------------
Costs and expenses:
Cost of systems and services revenues 56,776 42,694 14,082 33%
Cost of hardware revenues 2,575 7,311 (4,736) -65%
Sales and marketing 14,076 15,207 (1,131) -7%
Research and development 12,726 15,032 (2,306) -15%
General and administrative 3,840 3,281 559 17%
Depreciation and amortization 3,625 3,355 270 8%
------------- ------------- ------------- -------------
Total costs and expenses 93,618 86,880 6,738 8%
------------- ------------- ------------- -------------
Income (loss) from operations 4,234 (7,065) 11,299 N/A
Interest income, net 865 415 450 108%
Income (loss) before income taxes 5,099 (6,650) 11,749 N/A
Provision for income taxes - - -
------------- ------------- -------------
Net income (loss) $ 5,099 $ (6,650) $ 11,749 N/A
============= ============= =============
Earnings (loss) per share:
Basic earnings (loss) per share $ 0.11 $ (0.14) $ 0.25 N/A
Diluted earnings (loss) per share $ 0.10 $ (0.14) $ 0.24 N/A
============= ============= =============
Weighted average shares outstanding:
Basic 48,304 46,671
Diluted 51,316 46,671
ECLIPSYS RELEASES FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2005
OCTOBER 27, 2005
Page 4 of 4
Eclipsys Corporation
Consolidated Statement of Operations - Unaudited
(000's Omitted)
NINE MONTHS ENDED
-----------------------------
SEPTEMBER 30, SEPTEMBER 30,
2005 2004 CHANGE $ CHANGE %
------------- ------------- ------------- -------------
REVENUES:
Systems and services $ 269,491 $ 201,756 $ 67,735 34%
Hardware 8,660 20,086 (11,426) -57%
Total revenues 278,151 221,842 56,309 25%
------------- ------------- -------------
COSTS AND EXPENSES:
Cost of systems and services revenues 165,601 124,079 41,522 33%
Cost of hardware revenues 7,233 17,282 (10,049) -58%
Sales and marketing 47,136 46,356 780 2%
Research and development 39,276 44,306 (5,030) -11%
General and administrative 14,707 10,856 3,851 35%
Depreciation and amortization 10,891 9,731 1,160 12%
------------- ------------- -------------
Total costs and expenses 284,844 252,610 32,234 13%
------------- ------------- -------------
Income (loss) from operations (6,693) (30,768) 24,075 78%
Interest income, net 2,146 1,094 1,052 96%
------------- ------------- -------------
Income (loss) before income taxes (4,547) (29,674) 25,127 85%
Provision for income taxes - - -
------------- ------------- -------------
Net income (loss) $ (4,547) $ (29,674) $ 25,127 85%
============= ============= =============
EARNINGS (LOSS) PER SHARE:
------------- ------------- -------------
Basic earnings (loss) per share $ (0.10) $ (0.64) $ 0.54 84%
------------- ------------- -------------
Diluted earnings (loss) per share $ (0.10) $ (0.64) $ 0.54 84%
============= ============= =============
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 47,751 46,459
Diluted 47,751 46,459
ECLIPSYS RELEASES FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2005
OCTOBER 27, 2005
Page 5 of 5
Eclipsys Corporation
Statements of Cash Flows - Unaudited
(000's Omitted)
THREE MONTHS ENDED NINE MONTHS ENDED
------------------------------ ------------------------------
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2005 2004 2005 2004
------------- ------------- ------------- -------------
OPERATING ACTIVITIES:
Net income (loss) $ 5,099 $ (6,650) $ (4,547) $ (29,674)
Adjustments to reconcile net loss to
net cash provided by (used in) operating
activities
Depreciation and Amortization 8,319 7,468 24,425 19,719
Bad debt provision 450 350 1,500 1,350
Stock Compensation 570 132 1,720 293
Accounts receivable (10,697) (8,195) (11,832) (8,301)
Inventory (462) (247) (490) (1,395)
Other current assets (450) (1,705) (2,787) 1,434
Other assets 38 (350) (9,882) (2,800)
Deferred revenue 3,322 13,550 1,567 13,819
Accrued compensation (1,765) (2,790) 1,998 (4,297)
Other current liabilities 4,345 521 600 (480)
Other liabilities (8) (12) 1,135 (549)
------------- ------------- ------------- -------------
Total adjustments 3,662 8,722 7,954 18,793
------------- ------------- ------------- -------------
Net cash provided by (used in) operating
activities 8,761 2,072 3,407 (10,881)
INVESTING ACTIVITIES:
Net cash used in investing activities (58,912) (6,057) (112,035) (64,689)
Financing Activities:
Net cash provided by financing
activities 2,296 1,278 9,919 5,856
Effect of exchange rate changes on cash and
cash equivalents 29 106 117 86
Net increase (decrease) in cash and cash
equivalents (47,826) (2,601) (98,592) (69,628)
============= ============= ============= =============
Cash and cash equivalents, beginning of
period 71,265 84,656 122,031 151,683
Cash and cash equivalents, end of period 23,439 82,055 23,439 82,055
Marketable securities 83,643 - 83,643 -
Total Cash $ 107,082 $ 107,082
------------- -------------
ECLIPSYS RELEASES FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2005
OCTOBER 27, 2005
Page 6 of 6
Eclipsys Corporation
Consolidated Balance Sheets - Unaudited
(000's Omitted)
SEPTEMBER 30, DECEMBER 31,
2005 2004
------------- -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 23,439 $ 122,031
Marketable securities 83,643 -
Accounts receivable, net 75,195 64,862
Inventory 2,134 1,644
Other current assets 18,373 15,586
------------- -------------
Total current assets 202,784 204,123
Property and equipment, net 37,578 35,002
Capitalized software development costs, net 33,551 29,819
Acquired technology, net 660 886
Goodwill and other intangibles assets 7,524 6,667
Other assets $ 22,397 14,923
------------- -------------
Total assets $ 304,494 $ 291,420
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Deferred revenue 106,453 $ 106,804
Accrued compensation costs 14,386 12,738
Other current liabilities 33,187 32,587
------------- -------------
Total current liabilities 154,026 152,129
============= =============
Deferred revenue 17,809 15,892
Other long-term liabilities 1,258 122
Stockholders' equity: 131,401 123,277
------------- -------------
Total liabilities and stockholders' equity $ 304,494 $ 291,420
============= =============