Allscripts stock tum­bles af­ter board shakeup

Modern Healthcare - - LATE NEWS -

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.

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