Allscripts posts higher revenue, smaller loss in Q2

Executives from electronic health-record systems developer Allscripts Healthcare Solutions head into their annual users' group meeting next week with mixed financial news. The Chicago-based company reported a second-quarter loss, but a smaller one than for the same period last year—and company revenue is rising.

Allscripts late Thursday reported second quarter revenue of $351.3 million and a net loss of $17.8 million, or 9 cents per share.

Those figures compare with revenues of $344.8 million and a loss of $22.9 million, or 13 cents per share in the same period last year.

For the first six months of 2014, Allscripts reported revenues of $691.6 million and losses of $38.5 million, or 21 cents per share, compared to 2013 revenues for the same period of $691.9 million and losses of $34.5 million or 20 cents per share.

Operating expenses declined 9% and bookings grew 9%, year-over-year, for the quarter, said Allscripts CEO Paul Black on an earnings call. Bookings rose to $234 million in the second quarter, up $10 million compared with the first quarter this year, Black said.

The company added 180 net new clients in the second quarter, Black said, up from 130 in the first quarter. He also highlighted the July acquisition of Oasis Medical Solutions, a London-based developer of practice-management systems, which, when combined with Allscripts' EHRs, should help it better compete for business with national health trusts in the United Kingdom.

He also touted a contract win for its Sunrise EHR product with an unnamed “international government defense agency.”

“The specific client is confidential,” Black said, but he called the contract a “capstone achievement for bookings in Q2,” noting it includes “solutions for patient engagement and connectivity.” It will be “a large-scale deployment to dozens of clinics and outpatient centers,” he said.

In June, Allscripts announced it was joining the competition with partners Computer Sciences Corp. and Hewlett-Packard for an expected multi-billion contract to supply a new EHR to the Department of Defense's Military Health System.

Black also noted that all client upgrades to meaningful use and ICD-10-ready versions of its Sunrise product line (for hospitals) have been completed, and upgrades are 85% complete for its ambulatory TouchWorks and Professional EHR product lines.

The Allscripts Client Experience (ACE) users' group meeting begins Tuesday in Chicago.

Follow Joseph Conn on Twitter: @MHJConn



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