Electronic health-record developer Allscripts Healthcare Solutions saw a big increase in first-quarter business bookings; however, those came while revenue and earnings were falling. And CEO Paul Black hinted in a call with analysts that there are financial challenges in a current deal with a Xerox subsidiary, one of Allscripts' biggest clients.
Bookings in the first quarter of 2014 hit $223 million, up 26% compared with the same period last year. Bookings reflect the value of executed contracts for the company's various services. The increase was attributed to new sales of EHR-related software, revenue-cycle management, population health management solutions and managed IT service offerings to new and existing clients.
Overall, however, revenue was down $3 million from last year, hitting $345 million in the first quarter. The decline was tied to a major client that moved some services in-house and a drop in hardware revenue, company Chief Financial Officer Richard Poulton said. Net income for the quarter hit $12 million, down from $16.2 million in the same quarter last year.