Allscripts Healthcare Solutions Inc. (MDRX) confirmed it is
evaluating its strategic alternatives as the struggling provider of
electronic health records reported third-quarter earnings fell 51%
amid weaker margins and asset write-downs.
Allscripts has been looking to be taken private after an earlier
board shakeup and legal squabbles. The company on Thursday didn't
provide further details and said it doesn't plan to comment further
unless its board approves a specific transaction.
Allscripts withdrew its 2012 guidance in light of its decision
to explore its options.
The company has struggled recently with uneven results, which it
has attributed to customers delaying product extensions, along with
other factors.
Allscripts has been aiming to broadly launch during the current
quarter an overhauled data-exchange tool, along with upgrades for
important inpatient and outpatient systems.
Chief Executive Glen Tullman said, "While market uncertainty
impacted our sales in the third quarter, we are pleased with our
progress regarding important development initiatives."
Allscripts reported a profit of $9.4 million , or five cents a
share, down from $19.1 million , or 10 cents a share, a year
earlier. The latest period included a $16 million tax benefit.
Excluding asset write-downs, deferred revenue adjustments and other
items, earnings were down at 23 cents from 24 cents. Revenue
decreased 0.8% to $360.7 million.
Analysts polled by Thomson Reuters most recently projected
earnings of 22 cents on revenue of $377 million.
Gross margin fell to 43.5% from 44.5%.
Bookings were down 39% at 161.9 million.
Shares closed Thursday at $12.26 and were halted in after-hours
trading. The stock is down 35% this year.
Write to Tess Stynes at tess.stynes@dowjones.com
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