After earnings drop, Allscripts considers 'strategic alternatives'
Electronic health record giant Allscripts' financial situation continued to slip, with earnings and net income declining in the third quarter of 2012.
Net income declined from $191.1 million Q3 2011 to $9.4 million Q3 2012, according to Allscripts' announcement. Bookings slid from $ 266.8 million Q3 2011 and 194.1 million Q2 2012 to $161.9 million Q3 2012.
Sales in the third quarter also were lower than expected, although they declined less than 1 percent.
"While market uncertainty impacted our sales in the third quarter, we are pleased with our progress regarding important development initiatives" Allscripts CEO Glen Tullman, said in the statement. "There is significant market interest in our open platform, our advanced mobility and care coordination initiatives, and the upcoming release of Sunrise Financial Manager, our new revenue cycle management solution. We are also investing significantly to enhance the experience of our existing clients and lay the foundation for long-term growth."
However, Tullman did note that Allscripts may be considering a sale.
"In light of the ongoing interest expressed in the company by third parties, the company is evaluating strategic alternatives," he said.
The company has had its shares of troubles in 2012, with a board shakeup, a shareholder lawsuit and the loss of a contract with New York City's public hospitals. Last month Allscripts sued Aprima for alleged violations of advertising laws stemming from Allscripts' decision to no longer support its MyWay EHR product. Allscripts and Aprima announced this week, however, that the lawsuit has been settled.
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