Eclipsys Corp. (ECLP) filed Quarterly Report for the period ended 2009-09-30.
Eclipsys Corporation is a healthcare information technology companydelivering solutions that enable healthcare providers to achieve improvedclinical financial and administrative outcomes. Eclipsys offers an integrated suite of healthcare products in five critical areas -- clinical management access management patient financial management strategic decision support and integration. Eclipsys' products have been designed to deliver a measurable impact on outcomes enabling Eclipsys' customers to quantify clinical benefits and return on investment. Eclipsys Corp. has a market cap of $1.11 billion; its shares were traded at around $19.56 with a P/E ratio of 50.2 and P/S ratio of 2.2.
Highlight of Business Operations:
The HITECH Act provides the potential for aggregate payments over a period of approximately four or five years beginning in 2011 of up to approximately $10 million to qualifying hospitals (based upon a formula that takes into account various factors including total discharges and Medicare and charity patient volumes) and $44,000 to qualifying physicians. These are significant sums for many of those qualified to receive them, particularly in what is otherwise a challenging economic environment, and have provided a strong incentive for many hospitals and doctors to consider implementing certified HIT systems. As a result, we have noticed increased interest in our offerings, and we are hopeful that as the regulations to be implemented pursuant to The HITECH Act evolve and the practical parameters of these programs come into focus, we will share in the expected increase in market activity.
Pre-tax income for the third quarter was $4.1 million compared to $8.1 million in the third quarter of 2008. Results by quarter can vary due to many factors including the effects on demand of factors like The HITECH Act and other emerging changes in the market and regulatory environment for our clients; increasing price competition in certain market segments, as certain competitors attempt to retain market share; timing of license revenues; and capitalized software labor deferrals, which also can fluctuate based on project activity.
Consistent with the first half of 2009, we continued to have strong cash collections during the third quarter which held our days sales outstanding at 76 days compared to 75 days in the second quarter of 2009. Operating cash flows were $70.2 million for the first nine months in 2009 compared to operating cash flows of $41.5 million in the first nine months of 2008 due to improved collections as a result of management’s continued focus on cash collections and due to incentive compensation payments made in 2008 under the 2007 incentive plan. We did not pay bonuses in 2009 under the 2008 incentive plan. We utilized these additional cash flows and $23.9 million of proceeds from ARS sales and redemptions to repay $45.0 million of long-term debt during the third quarter of 2009. We also paid an additional $10.0 million of debt in October resulting in a balance on our Credit Facility of $50.0 million as of October 30, 2009.
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