 Allscripts completed its merger with Eclipsys Corporation on August 24, 2010 and, in connection with the merger, the Allscripts Board of Directors approved changing the company's fiscal year-end from May 31 to December 31.
The Company's 2010 fourth quarter financial statements include consolidated results for both Allscripts and Eclipsys for the three months ended December 31, 2010. References to non-GAAP historical results include both Allscripts and Eclipsys results for the comparable quarter from the prior year and includes the results of Allscripts for the three months ended November 30, 2009 and Eclipsys for the three months ended December 31, 2009 ("fourth quarter 2009").
GAAP revenue for the three months ended December 31, 2010 was $316.2 million. Total non-GAAP revenue for the three months ended December 31, 2010 was $337.1 million, compared to total non-GAAP revenue of $306.4 million for the fourth quarter 2009, a 10 percent increase.
GAAP gross profit was $146.1 million for the fourth quarter of 2010. Total non-GAAP gross profit was $167.0 million for the fourth quarter of 2010, compared to $154.6 million for the fourth quarter 2009, an increase of 8 percent.
GAAP operating income for the fourth quarter of 2010 totaled $9.5 million and includes transaction-related expenses of $17.8 million, on a pre-tax basis. Total non-GAAP operating income was $69.3 million for the fourth quarter of 2010, or 20.6 percent of total non-GAAP revenue. This compares to $55.0 million or 18 percent of total non-GAAP revenue for the fourth quarter 2009.
GAAP net loss for the fourth quarter of 2010 was $6.2 million and includes the following charges all on a net-of-tax basis: the add-back of a deferred revenue adjustment of $12.7 million; $10.6 million for acquisition-related amortization expense; $2.3 million for stock-based compensation expense; and $10.9 million for transaction-related expenses; and $8.4 million of additional income tax expense primarily related to non-deductible merger-related expenses.
Total non-GAAP net income was $38.7 million for the fourth quarter of 2010, compared to $33.8 million for the fourth quarter 2009, an increase of 14 percent.
Diluted loss per share for the three months ended December 31, 2010 was $0.03 and includes the following charges all on a net-of-tax basis: the add-back of a deferred revenue adjustment of $0.07 per share; $0.05 per share for acquisition-related amortization expense; $0.01 per share for stock-based compensation; $0.06 per share for transaction-related expenses; and $0.04 per share of additional income tax expense primarily related to non-deductible merger-related expenses.
Non-GAAP diluted earnings per share was $0.20 for the three months ended December 31, 2010, compared to $0.17 per diluted share for the fourth quarter 2009.
In connection with the repurchase of approximately 24.4 million of its shares in August 2010, Allscripts entered into a credit agreement for a $470 million senior secured term loan facility and a $250 million senior secured revolving facility, collectively referred to as the "Senior Secured Credit Facilities." Allscripts borrowed a total of $570 million under the Senior Secured Credit Facilities in August 2010to finance the share repurchase. As of December 31, 2010, Allscripts repaid approximately $81 million of the initial amounts borrowed. As of December 31,2010, the company had $489 million of borrowings outstandingandcash and marketable securities of approximately $131 million.
"Allscripts delivered outstanding results this quarter, the first full period of combined operations since our merger with Eclipsys," said Glen Tullman, Chief Executive Officer of Allscripts. "Our sales momentum reflects our comprehensive set of solutions, our ability to execute and strong demand in the market. We achieved significant cross sales of our ambulatory and acute solutions into our client base. Most important, we are focused on realizing our vision of transforming today's disconnected silos of healthcare into a connected community of health." |
