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Allscripts Healthcare Solutions Inc Reports Operating Results (10-K)

February 29, 2012 | About:

10qk

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Allscripts Healthcare Solutions Inc (MDRX) filed Annual Report for the period ended 2011-12-31.

Allscripts Hlth has a market cap of $3.7 billion; its shares were traded at around $19.32 with a P/E ratio of 24.7 and P/S ratio of 2.6. Allscripts Hlth had an annual average earning growth of 0.4% over the past 5 years.

Highlight of Business Operations:

As of December 31, 2011 and 2010, we had a committed contract backlog of $2.9 billion and $2.7 billion, respectively. A portion of the contracts in the committed contract backlog are accounted for under the percentage of completion accounting method. The determination of the revenue related to percentage of completion contracts which is expected to be recognized over the next twelve months is based upon the projected implementation period for such contracts. We estimate that approximately 41% of the total backlog at December 31, 2011 will be recognized as revenue during 2012.

The Eclipsys income from operations for the years ended December 31, 2011 and 2010 includes a $20 million and $27 million, respectively, deferred revenue adjustment related to the Eclipsys Merger that negatively impacts revenue, amortization of intangibles acquired in the Eclipsys Merger totaling $46 million and $17 million, respectively, and reflects capitalized software developments costs of $29 million and $8 million, respectively.

Clinical solutions revenue increased during the year ended December 31, 2011 due to higher professional services revenue that was driven by an increase in professional services headcount which increased our ability to provide more billable services. We increased headcount primarily in response to the demand associated with meaningful use upgrade services. Also, maintenance revenue and transaction processing revenue both increased primarily related to growth in our customer base. Partially offsetting the increase in maintenance revenue is a $4 million decrease in hardware maintenance revenue. SaaS revenues are included in transaction processing and other and contributed $10 million of the increase in revenue compared to the prior period. Partially offsetting the current year increase in total revenue is a decrease in system sales compared to the prior period primarily due to a $10 million decrease in system hardware revenue as our system sales shifted to smaller physician practices which typically require less robust hardware solutions.

Total revenue is negatively impacted by the amortization of a deferred revenue adjustment related to the Eclipsys Merger totaling $20 million and $27 million for the year ended December 31, 2011 and 2010, respectively.

As of December 31, 2011 and 2010, we had a committed contract backlog of $2.9 billion and $2.7 billion, respectively. A portion of the contracts in the committed contract backlog are accounted for under the percentage of completion accounting method. The determination of the revenue related to percentage of completion contracts which is expected to be recognized over the next twelve months is based upon the projected implementation period for such contracts. We estimate that approximately 41% of the total backlog at December 31, 2011 will be recognized as revenue during 2012.

Read the The complete Report

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