Healthcare information services company Allscripts Healthcare Solutions, Inc. (MDRX) reported Thursday a loss for the first quarter compared to a profit last year, reflecting higher charges and lower revenues amid weak bookings. Adjusted earnings per share and quarterly revenues missed analysts' expectations.
"We are making progress in key areas including an unwavering client focus, delivering on our commitments and driving operational effectiveness. In addition, we took a series of important actions this quarter to advance our Open, Connected Community of Health strategy, enhancing our competitive positioning, including the acquisitions of dbMotion and Jardogs," President and CEO Paul Black said in a statement.
The company, which named board member, Black, as its president and CEO in mid-December after Glen Tullman stepped down from his positions as CEO and board member as well as Lee Shapiro also stepped down as President. At that time, the company also announced that the Board has formally concluded its evaluation of strategic alternatives.
The Chicago, Illinois-based electronic health-records company reported a net loss of $11.6 million or $0.07 per share for the first quarter, compared to net income of $5.8 million or $0.03 per share in the prior-year quarter.
Excluding one-time items, adjusted net income for the quarter was $16.2 million or $0.09 per share, compared to $23.5 million or $0.12 per share in the year-ago quarter.
On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.14 per share for the quarter. Analysts' estimates typically exclude one-time items.
Revenues for the quarter declined to $347.1 million from $364.7 million in the same quarter last year. Adjusted revenue was $348.0 million, compared to $365.50 million last year, and missed sixteen Wall Street analysts' consensus estimate of $367.76 million.
Bookings for the quarter were $177.7 million, compared to $194.6 million in the prior-year quarter.
Adjusted operating margin for the quarter contracted 610 basis points to 5.1 percent from last year, as adjusted gross margin declined 260 basis points.
"We are investing heavily in both our clients and our products and so while our financial results for the quarter are not surprising, they are not satisfactory and not indicative of our long term potential. This is a rebuilding year for Allscripts and I remain confident we are taking the right steps forward," Black added.
MDRX closed Thursday's regular trading session at $13.85, up $0.10 or 0.73% on a volume of 2.51 million shares. However, the stock lost $0.72 or 5.20% in after-hours trading.
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