Stock analysts were supposed to hear this morning from officials of physician practice management software and pharmacy information technology vendor NDC Health of Atlanta.
Instead, the company cancelled today's conference call it had announced only last Friday and also tabled Thursday's released of fiscal 2004 third quarter financial results.
"This decision was prompted by the company's initiation of a review concerning practices and procedures relating to the timing of revenue recognition of sales to the value-added reseller channel in its physician business unit," the company said in a prepared statement. "The physician systems business historically has constituted approximately 8% of the company's total revenue and 6.5% of its total operating income. NDC Health will release its results as soon as its review is completed."
The company sells some of its practice management systems software directly to physician offices, but the bulk of its sales are through a network of about 1,000 value-added resellers, or VARs, according to Robert Borchert, vice president of investor relations. The VAR might install the software for the physician practice, as well as provide the equipment and systems maintenance for the small groups, acting like its outsourced information technology department.
The company books sales when the software is delivered to the VAR, Borchert said.
NDC Health, which began in 1967 as National Data Corp. providing credit-card authorization services to the oil industry, is one of the largest sellers of physician office practice management systems, particularly in the small-office setting. The company claims that more than 140,000 physicians use its products.
The company also provides data backbones and claims-processing services for the pharmacy industry as well as data-mining for the pharmaceutical industry.