Allscripts Healthcare Solutions, Inc. (MDRX) saw its loss widen to $10.10 million, or $0.06 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $5.20 million, or $0.03 a share. On the other hand, adjusted net income for the quarter stood at $25.90 million, or $0.14 a share compared with $24.50 million or $0.13 a share, a year ago. Revenue during the quarter grew 10.69 percent to $392.40 million from $354.50 million in the previous year period. Gross margin for the quarter contracted 94 basis points over the previous year period to 42.33 percent. Total expenses were 95.72 percent of quarterly revenues, down from 97.49 percent for the same period last year. This has led to an improvement of 177 basis points in operating margin to 4.28 percent.
Operating income for the quarter was $16.80 million, compared with $8.90 million in the previous year period.
However, the adjusted operating income for the quarter stood at $58.50 million compared to $42.80 million in the prior year period. At the same time, adjusted operating margin improved 283 basis points in the quarter to 14.91 percent from 12.07 percent in the last year period.
"Allscripts continued to drive good sales momentum in the third quarter, adding new clients and growing existing relationships across the company’s large global installed base," Paul M. Black, chief executive officer of Allscripts, said, "We added new Sunrise EHR and revenue cycle management clients globally and bookings for revenue cycle management services reached record levels. In addition, multiple new health care organizations selected our industry-leading CareInMotion technology as a critical platform for their population health strategies. Industry demand in the third quarter drove strong software bookings, which grew 25 percent year-over-year."
For the fourth-quarter 2016, Allscripts Healthcare Solutions, Inc. projects adjusted revenue to be in the range of $420 million to $435 million. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.14 to $0.16.
Operating cash flow improves significantly
Allscripts Healthcare Solutions, Inc. has generated cash of $185.10 million from operating activities during the nine month period, up 44.27 percent or $56.80 million, when compared with the last year period. The company has spent $1,051 million cash to meet investing activities during the nine month period as against cash outgo of $265.20 million in the last year period.
Cash flow from financing activities was $826 million for the nine month period, up 368.79 percent or $649.80 million, when compared with the last year period.
Cash and cash equivalents stood at $77.30 million as on Sep. 30, 2016, down 15.42 percent or $14.10 million from $91.40 million on Sep. 30, 2015.
Working capital turns negative
Working capital of Allscripts Healthcare Solutions, Inc. has turned negative to $35.70 million on Sep. 30, 2016 from positive $60.68 million on Sep. 30, 2015. Current ratio was at 0.94 as on Sep. 30, 2016, down from 1.12 on Sep. 30, 2015.
Days sales outstanding were almost stable at 85 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 34 days for the quarter from 32 for the same period last year.
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