Athenahealth, Watertown, Mass., an online electronic health-record services provider, said it would delay release of its fourth-quarter and 2009 financial results. The publicly traded company said in a news release ahead of its official late filing notice to the Securities and Exchange Commission—expected March 2—that Athenahealth needed time to finish its 2009 audit and an internal accounting policy review of its deferred implementation revenue.
The company's management initiated the review of revenue from implementation by new customers of its services, which has typically been amortized, once implementation is final, during an initial one-year contract. Under accounting policies, the revenue was deferred until implementation is complete.
Athenahealth's one-year contracts typically renew automatically, and officials are reviewing whether to extend the period of amortization, the company said.
For the nine months that ended in September 2009, the implementation and other revenue accounted for 5.5%, or $7.6 million, of Athenahealth's $137.5 million in total revenue, according to the release.
Athenahealth, which also provides online physician practice management services, did not give an expected date for release of the delayed financials.