Sep. 29, 2009 (PR Newswire) -- CHICAGO, Sept. 29 /PRNewswire-FirstCall/ -- Allscripts-Misys Healthcare Solutions, Inc. (Allscripts or the Company) today announced its financial results for the three months ended August 31, 2009, its first quarter of fiscal 2010.

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Total revenue for the three months ended August 31, 2009 was $164.9 million, compared to $92.8 million for the same period last year. Non-GAAP revenue for the three months ended August 31, 2009 was $167.5 million, compared to non-GAAP revenue of $164.7 million for the same period last year. Non-GAAP revenue for the three months ended August 31, 2009 and 2008 are comprised of revenue from Allscripts and Misys Healthcare (Misys), respectively, for the full three-month period of each respective year, giving effect to the add-back of a deferred revenue adjustment of $2.6 million recorded for GAAP purposes in the three month period ended August 31, 2009. In addition, non-GAAP revenue for three months ended August 31, 2008 excludes $9.9 million in prepackaged medications revenue that were recorded for GAAP purposes. Allscripts disposed of its prepackaged medications business on March 16, 2009. Please see "Explanation of Non-GAAP Financial Measures" below for a discussion of non-GAAP measures.

Gross margin percentage was 54.0% for the first quarter of fiscal 2010, compared to 53.9% for the same period last year. Based on non-GAAP revenue for each respective quarter, gross margin percentage was 54.7% for the first quarter of fiscal 2010, compared to 53.9% during the first quarter of fiscal 2009.

Net income for the three months ended August 31, 2009 was $12.9 million compared to net income of $5.4 million for the same period last year. Earnings for the three months ended August 31, 2009 were $0.09 cents per diluted share.

Non-GAAP net income for the three months ended August 31, 2009 was $22.2 million, compared to non-GAAP net income of $14.8 million for the same period last year, representing an increase of 50.0%. Non-GAAP net income for the three months ended August 31, 2009 and 2008 are comprised of net income from Allscripts and Misys, respectively, for the full three-month period of each respective year, giving effect to the add-back of acquisition-related amortization of $3.5 million and $2.4 million, respectively, net of tax; total stock-based compensation expense of $2.0 million and $1.5 million, respectively, net of tax; and transaction-related expenses of $2.4 million and $4.2 million, net of tax. Non-GAAP net income for the three months ended August 31, 2009 also gives effect to a deferred revenue adjustment of $1.5 million, net of tax; and the three months ended August 31, 2008 eliminates prepackaged medications net income of $0.5 million. Non-GAAP earnings for the three months ended August 31, 2009 were $0.15 cents per diluted share.

As of August 31, 2009 the Company had cash and marketable securities of $86.9 million.

"Allscripts posted solid results this quarter across all of our key metrics," said Glen Tullman, Chief Executive Officer of Allscripts. "Our results are a reflection of a successful merger, a focused effort on the processes critical to our growth, and great execution by our team. We're seeing strong demand for our products, even in advance of the federal stimulus incentives that we expect will accelerate adoption as we work towards our vision of transforming healthcare into a connected system of health."

Conference Call

Allscripts will conduct a conference call today, September 29, 2009 at 4:30 PM Eastern Daylight Time to discuss the Company's earnings and other information. The conference call can be accessed via the Internet at www.allscripts.com, or by dialing (877) 230-5050 and requesting the Allscripts earnings call. International callers can access the audio portion of the webcast by dialing (973) 532-4923 and requesting the Allscripts Investor Presentation. A Microsoft Windows Media Player web replay will be available four hours after the conclusion of the call for a period of two weeks at www.allscripts.com or by calling (800) 642-1687 - or (706) 645-9291 for international callers - ID # 27582277.

(Minimum requirements to listen to the call online are: Microsoft Windows Media Player software, downloadable free from http://windowsmedia.com/download/download.asp, an Internet connection, and speakers or earphones).

Basis of Presentation

The Company's results for the three months ended August 31, 2009 include results of Allscripts for the complete fiscal quarter. The Company's GAAP results for the three months ended August 31, 2008 include only the results of Misys. A subsidiary of Allscripts merged with Misys, formerly a division of Misys plc, on October 10, 2008, at which time the legal name of Allscripts became Allscripts-Misys Healthcare Solutions, Inc.

Explanation of Non-GAAP Financial Measures

Allscripts reports its financial results in accordance with generally accepted accounting principles, or GAAP. To supplement this information, Allscripts presents in this press release non-GAAP revenue and net income, including non-GAAP net income on a per share basis, which are non-GAAP financial measures under Section 101 of Regulation G under the Securities Exchange Act of 1934, as amended. Non-GAAP revenue consists of GAAP revenue and legacy Allscripts revenue for periods prior to the consummation date of the Misys merger and adds back the deferred revenue adjustment booked for GAAP purposes and excludes revenue from prepackaged medications. Non-GAAP net income consists of GAAP net income and includes legacy Allscripts net income for periods prior to the consummation date of the Misys merger, excludes acquisition-related amortization, stock-based compensation expense under SFAS No. 123R, and transaction-related expenses, adds back the deferred revenue adjustment and excludes net income from prepackaged medications, in each case net of any related tax benefit.

--  Acquisition-Related Amortization. Acquisition-related amortization
expense is a non-cash expense arising from the acquisition of intangible
assets in connection with acquisitions or investments.  Allscripts
excludes acquisition-related amortization expense from non-GAAP net
income because it believes (i) the amount of such expenses in any
specific period may not directly correlate to the underlying performance
of Allscripts business operations and (ii) such expenses can vary
significantly between periods as a result of new acquisitions and full
amortization of previously acquired intangible assets.