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 allowance 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.