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May 5, 2010
Share ThisOn a reported basis, Eclipsys earned 9 cents per share in the quarter as against a loss of 2 cents per share in the year-ago quarter. The improved showing in the reported quarter despite lower revenues was attributable to lower expenses.
Total revenues for the reported quarter declined 2.7% to $128.4 million from $131.9 million (inclusive of $1.7 million from premise acquisition accounting) in the year-ago quarter. Segment revenues from systems and services declined to $125.6 million from $129.9 million in the year-ago quarter (inclusive of $1.7 million from premise acquisition accounting). Hardware revenues climbed 40% to $2.8 million from the year-ago quarter.
The revenues from systems and services for the quarter included recurring revenues of $94.3 million, up 6.7% year-over-year, professional services revenues of $22.8 million down 17.8% and periodic revenues of $8.5 million, down 38.8% year-over-year. The operating expenses in the quarter (post adjustments) declined to $43.7 million from $49.3 million (post adjustments) in the year-ago quarter.
The company reported a gross profit (after adjustments) of approximately $61.2 million in the reported quarter as against $63.6 million (post adjustments) in the year-ago quarter. Operating expenses in the quarter (post adjustments) came in at $43.7 million as against approximately $49.3 million (post adjustments) in the year-ago quarter.
Eclipsys exited the quarter with approximately $118.7 million in cash and $81.4 million in long-term investments. Eclipsys’ long-term debt at the end of 2009 was $29 million. The company repaid $14 million on its credit facility during the reported quarter and the remaining $15 million in April 2010.
2010 Outlook
Eclipsys reaffirmed its earlier earnings guidance for 2010. The company expects to earn (excluding special items) between 70 cents per share and 75 cents per share in 2010.
Furthermore, Eclipsys projects 2010 revenues in the range of $559 million to $569 million. New business bookings (defined as the value of all new contracts signed in a particular period, excluding renewals) are estimated to range from $469 million to $508 million.
Our Recommendation
Currently, we are Neutral on Eclipsys Corporation. This implies that the stock is expected to perform in line with the overall U.S. equity market over the next 6−12 months. Consequently, we advise investors to retain the stock over the time period.
Read the full analyst report on "ECLP"
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