Allscripts stock tumbles after board shakeup
The leadership of Allscripts Healthcare Solutions is in flux as the company reported disappointing financial results for the quarter that ended March 31. In a news release and call with investors that pre-empted the scheduled release of its first-quarter earnings May 7, CEO Glen Tullman also announced that the board voted to terminate the service of Philip Pead on April 25 and that three other members of the nine-member board—catherine Burzik, Eugene Fife and Edward Kangas—resigned. Two of them, Fife and Kangas, like Pead, were former board members of Eclipsys, a developer of inpatient electronic health record systems that Allscripts acquired in September 2010. Fife also had served as president, interim CEO and chairman of Eclipsys. Kangas is board chairman of Tenet Healthcare Corp. Chief Financial Officer William Davis will leave the company May 18, it also was announced. “Our overall results were primarily driven by lower than expected sales and an unfavorable sales mix,” Tullman said on the call. Operating income was $13 million, down 47% compared with $24.5 million in the first three months of 2011, although total revenue was up 9% year-over-year for the quarter to $364.7 million compared with $335.3. The company’s share price on the Nasdaq exchange was hammered, closing at $10.30 Friday, or 36% off its previous close of $16.02.