Electronic health record giant Allscripts enjoyed a greater than expected quarter despite a 50 percent drop in profit from a year ago, with sales rising 3.7 percent to $370 million, according to its Q2 earnings conference call held August 8.
The company fared poorly in Q1 of this year after firing chairman Phil Pead in April. Shares of stock fell 36 percent, three board members and the CFO resigned, and one shareholder launched a proxy fight. CEO Glen Tullman (pictured), however, said during the call that there is "no other shoe to drop" and that the company didn't expect any dramatic increases.
Bookings in Q2 were consistent with those in Q1, at $194.1 million and $194.6 million, respectively, although still down from bookings in Q2 2011, which were $244.6 million. But Allscripts lifted its earnings forecast, expecting earnings of $0.77 to $0.83 a share, up from $0.74 to $0.80 per share.
Allscripts' stock rose after the news.
Tullman said that Allscripts has new and updated product offerings, particularly in population health management, analytics and care coordination. It has signed on several new clients and increased bookings in the ambulatory care market. The company is focusing on cost-effective open EHR systems that are easy to install.
"The market will be competitive and active, and people are looking [at other vendors]," he said. "But looking does not mean changing."
To learn more:
- read the announcement
- listen to the conference call