Reuters: Global Markets: Allscripts' development costs hurt profit, sees board changes

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Allscripts' development costs hurt profit, sees board changes Apr 27th 2012, 00:30 Thu Apr 26, 2012 8:30pm EDT (Reuters) - Allscripts Healthcare Solutions Inc (MDRX.O) posted a weaker-than-expected quarterly profit and forecast weak 2012 earnings due to higher software development costs and weaker bookings. Shares of the Chicago-based company plunged 45 percent to $8.70 in extended trading. They closed at $16.02 on Thursday on the Nasdaq. For the quarter ended March 31, the healthcare information technology provider's bookings slipped 8 percent to $194.6 million from a year earlier. The company's research and development costs increased 64 percent to $36.1 million. Chief Financial Officer Bill Davis resigned from the company, effective May 18, Allscripts said. Dave Morgan, senior vice president of finance, will become the interim CFO while the company searches for Davis' successor. Net income for the quarter was $5.8 million, or 3 cents a share, compared with $12.6 million, or 7 cents a share a year ago, the company said. Excluding items, it earned 12 cents share. Revenue rose 9 percent to $365.5 million. Analysts polled by Thomson Reuters expected the company to post a profit of 24 cents a share on revenue of $387.7 million. Allscripts said three directors resigned and Board Chairman Phil Pead also left. The company said it expects to add several directors shortly. (Reporting by Vidya P L Nathan and Kartick Jagtap in Bangalore; Editing by Maju Samuel and Ryan Woo) Link this Share this Digg this Email Reprints

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