Allscripts Shares Down 6% As Q2 Results Miss Estimates, Slips To Loss

(RTTNews) - Shares of Allscripts Healthcare Solutions, Inc. (MDRX) plunged more than six percent in extended trading on Thursday after the healthcare information services company reported results for the second quarter that missed analysts' expectations. The company also reported a loss for the quarter compared to a profit last year, hurt by higher charges and lower margins.

"We achieved important milestones this quarter that strengthen Allscripts long-term market position. While we have important work ahead of us to return Allscripts to sustainable, predictable top-line growth and improved profitability, this quarter's achievements are certainly encouraging," President and CEO Paul Black said in a statement.

The Chicago, Illinois-based electronic health-records company reported a net loss of $22.9 million or $0.13 per share for the second quarter, compared to net income of $8.0 million or $0.04 per share in the prior-year quarter.

Excluding one-time items, adjusted net income for the quarter was $9.0 million or $0.05 per share, compared to $29.3 million or $0.16 per share in the year-ago quarter.

On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $0.10 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter declined to $344.8 million from $370.0 million in the same quarter last year. Adjusted revenue was $347.1 million, compared to $370.70 million last year, and missed twenty Wall Street analysts' consensus estimate of $357.22 million.

Bookings for the quarter were $214.1 million, compared to $194.1 million in the prior-year quarter. This was the highest quarterly level of new bookings since the fourth quarter of 2011.

The company's contract revenue backlog also grew 16 percent year-over-year to a record $3.2 billion at the end of the second quarter.

Adjusted gross margin for the quarter contracted 110 basis points to 44.0 percent from last year.

"Our intense focus on client obligations will continue in the second half of 2013. We will leverage our recent success, including the certification of all Meaningful Use 2014 editions of our core clinical solutions, to drive further operational momentum," Black added.

MDRX closed Thursday's regular trading session at $16.13, up $0.16 or 1.00% on a volume of 1.81 million shares. However, the stock pared the gains and lost $1.03 or 6.39% in after-hours trading.