All earnings of Allscripts Q3 are missing from the Wall Street forecast between the COVID-19 core support

• Allscripts reported lower revenues on Wall Street of $ 402.1 million for the third quarter, down nearly 10% year-over-year. The results were released Thursday due to the persistent challenges posed by the pandemic and a poor business environment.

• In a call with investors on Thursday, management said the third quarter is generally weaker seasonally and this is exacerbated by the pandemic environment. The Chicago-based vendor is experiencing declining demand for software and fewer customers seeking IT advice and updates. Reserves of $ 187 million fell 21% year-on-year and remained virtually unchanged sequentially, but still better than some analysts expected.

• Allscripts maintains its formal revenue forecast after being withdrawn in the first quarter due to volatility from COVID-19. However, the fourth quarter is historically the highest annual revenue and revenue for Allscripts. The seller expects fourth-quarter sales “to increase slightly,” CFO Rick Poulton said during the conference call and an adjusted EBITDA margin of between 19.5% and 20%. Allscripts shares fell slightly in the secondary market due to the results.

Allscripts’ quarter was mixed, with a significant drop in revenue amid COVID-19 headwinds, which was offset by ongoing cost control initiatives that generated modest earnings per share. Allscripts posted a net profit of $ 0.5 million compared to a net loss of $ 5.7 million for the same period last year.

Most of the revenue loss was in Allscripts’ software supply, support, and maintenance businesses, which posted $ 250.6 million in revenue, down 12% year-on-year. Year after year.

However, Black expects sales to increase in the fourth quarter and beyond, with most of the large hospitals and for-profit healthcare systems breaking even or making small profits this year. This can be reinvested in IT solutions.

Allscripts announced in July that it was selling its financial decision support business in EPSi hospitals to cloud technology company Strata Decision Technology for $ 365 million. Allscripts is also selling its care coordination business, CarePort, for $ 1.35 billion.

“These platforms had above-average growth rates and margins, but we knew that wasn’t reflected in Allscripts’ overall valuation,” said Poulton. “As a result, we have decided to unlock shareholder value.”

Together, the two companies account for less than 10% of Allscripts’ consolidated sales. The seller expects after-tax revenue of about $ 1.25 billion, Poulton said and plans to use the funds to reduce debt and return money to shareholders.

After the sale, Allscripts will have around half of its market cap in cash, which “opens the door to significant deleveraging … and buyout potential,” SVB analyst Leerink Stephanie said in a statement on Friday. Davis.

Allscripts a payé 15,7 millions de dollars dans un règlement de 145 millions de dollars avec le ministère de la Justice au cours du quarter pour clarifier les allégations selon lesquelles une filial, Practice Fusion, aurait falsifié la certification du DSE et violé les lois sur the corruption.