Athenahealth, Inc. (ATHN), a provider internet-based business services for physician practices, Thursday reported a decline in profit for the third quarter, despite a rise in revenues, due mainly to higher income tax provision.
Net income for the third quarter declined to $2.11 million or $0.06 per share from $3.70 million or $0.11 per share in the previous year. Results for the quarter include acquisition related expense of $651 thousand, loss on interest rate derivative contract of $125 thousand and stock-based compensation expenses of $2.12 million.
On an adjusted basis, net income was $4.99 million, compared to $4.82 million a year ago. Per share earnings remained flat at $0.14 per share with last year. On average, 25 analysts polled by Thomson Reuters expected the company to report earnings of $0.16 per share. Analysts' estimates typically exclude special items.
Total revenue for the quarter increased 37% to $48.69 million from $35.43 million last year and topped analysts' estimate of $48.67 million.
Business services revenue rose to $45.61 million from $33.08 million in the previous year. Implementation and other revenue increased to $3.08 million from $2.35 million last year.
Total expenses for the quarter increased to $44.19 million from $32.02 million a year ago. Income tax provision rose to $2.30 million from $0.08 million in the previous year following the reversal of a valuation allowance against U.S. deferred tax assets in the fourth quarter of 2008.
The company noted that it has posted $1.2 billion in collections to client accounts in the third quarter of 2009, compared to $0.9 billion in the same quarter of 2008.
For the nine-month period, net income declined to $7.48 million or $0.22 per share from $8.31 million or $0.24 per share in the same period of the previous year. Total revenue for the period increased to $137.51 million from $98.16 million a year ago.
ATHN closed Thursday's regular trading at $36.25, up 0.50 or 1.40%, on a volume of 702K shares on the Nasdaq. In after hours, the stock went down 1.00 or 2.76%, trading at $35.25.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.