Eclipsys ends Q2 in the red, looks to stimulus for help
Health IT system developer Eclipsys has reported declining revenues and a sharp downturn in profitability for the Atlanta-based firm's 2009 fiscal second quarter, which ended June 30.
The company reported a net loss of $4.1 million for the period, a significant turnaround compared with a net income of $8.5 million for the second quarter of fiscal 2008.
Eclipsys booked quarterly revenues of $129.8 million, slightly down compared with revenues of $132.1 million for the 2008 second quarter.
For the period, Eclipsys said items that affected its losses were severance costs primarily associated with the resignation of the company's former CEO, exclusion of tax expense related to discrete tax items in the quarter, primarily deferred tax asset adjustments for Canadian research and development credits. Also, the company said the second quarter was affected by purchase accounting adjustments in connection with the acquisition of Premise, which was completed in Dec. 2008.
"The American Recovery and Reinvestment Act of 2009 is driving increased activity with both clients and prospects," said Philip M. Pead, Eclipsys' president and CEO. "We expect this activity to accelerate as hospitals and physician practices gain a clearer understanding of what constitutes meaningful use. In addition, we have several initiatives underway that will enable us to be more cost efficient, and we expect the positive effects on margins from these initiatives to become apparent in 2010."
The company reported a net loss of $4.1 million for the period, a significant turnaround compared with a net income of $8.5 million for the second quarter of fiscal 2008.
Eclipsys booked quarterly revenues of $129.8 million, slightly down compared with revenues of $132.1 million for the 2008 second quarter.
For the period, Eclipsys said items that affected its losses were severance costs primarily associated with the resignation of the company's former CEO, exclusion of tax expense related to discrete tax items in the quarter, primarily deferred tax asset adjustments for Canadian research and development credits. Also, the company said the second quarter was affected by purchase accounting adjustments in connection with the acquisition of Premise, which was completed in Dec. 2008.
"The American Recovery and Reinvestment Act of 2009 is driving increased activity with both clients and prospects," said Philip M. Pead, Eclipsys' president and CEO. "We expect this activity to accelerate as hospitals and physician practices gain a clearer understanding of what constitutes meaningful use. In addition, we have several initiatives underway that will enable us to be more cost efficient, and we expect the positive effects on margins from these initiatives to become apparent in 2010."