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Eclipsys Misses Numbers, CFO Resigns, NYU Chooses Epic

January 21, 2009 News 9 Comments

Eclipsys shares are down over 17% in after-hours trading following a disappointing Q4 preliminary earnings report. For the quarter ending December 31, 2008, the company expects flat revenue and GAAP EPS of $0.07 to $0.11 compared to $0.45 a year ago. Revenue for the full year is expected to be up around 8%, with full-year GAAP earnings of $1.82 to $1.86 compared to $0.76 for FY07.

President and CEO R. Andrew Eckert called the quarterly results "disappointing," blaming delayed customer closes, a shift to back-loaded subscription deals, reduced customer utilization of professional services, an increased bobcollettiallowance for doubtful accounts for specific customers, and lower margins on third-party software due to market pricing pressures. "Economic factors are affecting our business, and the business of our clients," said Eckert. "In response to this uncertain environment, we are taking actions to adjust our cost structure and business practices." 

Eckert announced that Robert Colletti, senior vice president, CFO, and treasurer, resigned his position on January 14. David Morgan, VP of finance and assistant treasurer who joined the company in August 2008, will assume those roles in an interim capacity.

Meanwhile, an article published Wednesday reports that NYU Langone Medical Center will purchase a fully integrated clinical and patient financial system from Epic Systems Corp. with a total project cost of $186.4 million. The hospital installed an inpatient system from Eclipsys in 2007, but says it will be enhanced rather than replaced.

Unverified rumors reported to HIStalk today suggest that Eclipsys may reduce professional services headcount and announce the discontinuation of bonuses and merit increases for employees later this week. 

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Currently there are "9 comments" on this Article:

  1. Mendelssohn’s “Wedding March” is playing in Madison and Queens “Another one bites the dust” in Boca Raton.

    Still, no mention of how many apples and oranges you can buy with $186.4 million? You guys are slipping.

  2. I went to Epic’s head quarter for training recently and I was simply in awe of the kind of facility they have in Wisconsin. It looks like Epic has really pick up steam lately and most impressive of it all is that they are still a private company.

  3. Too bad. The Eclipsys clinical system is a good product. Thier problem lies with weak project management, project delivery and terrible customer service.

  4. You can add to weak proj. management, proj. delivery, and terrible customer service – their increasing reputation for not delivering on what they promise during the sales cycle. Their sales force does not bring in the 3rd party software sales force and promises functionality that doesn’t exist.

  5. A quick correction about Eclipsys. They haven’t “officially” been in Boca Raton, FL since early last year. The company’s headquarters are now in Atlanta. However, the “management team” remains scattered all over North America (and India), and have not improved in the 3+ years Andy Eckert has been CEO. Any wonder why Epic – and others – are kicking their butts?

  6. Another question is whether any of ECLP’s recent acquisitions, in the teeth of a recession, will help with the LIJ situation which ran into some difficulties over the ambulatory providers

  7. They let 140 employees go but do the clients know they posted 140 new jobs on their India website that day. Isn’t this unamerican and the reason America is in the shape it is today economy wise. Shame on you Eclipsys.

  8. My job with Eclipsys was outsourced…excuse me, “offshored” to India as well. India is now the first point of contact for Eclipsys customers. Is it any wonder that people are complaining about their customer service? Also, they are acquiring new companies, such as MediNotes, left and right. Unfortunately, they do not have the manpower, nor are they ready to support the customers of these new acquisitions. So, those three offices in India, pushing hundreds of American workers out of their jobs…was it worth it?

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