Second-quarter fiscal 2010 results announced by Allscripts-Misys Healthcare Solutions

Allscripts-Misys Healthcare Solutions, Inc. (Allscripts or the Company) today announced its financial results for the three and six months ended November 30, 2009.

Second Quarter Highlights:

• Total revenue of $169.3 million; non-GAAP revenue of $170.7 million
• Earnings per share of $0.10 cents; non-GAAP earnings per share of $0.16 cents
• Net income of $15.8 million in the quarter; non-GAAP net income of $24.0 million, up 45% versus the same period last year
• Bookings of $93.8 million, a 16% increase over the prior year
• Gross margin of 56.4% versus 54.0% in the first quarter of fiscal 2010
• Cash flow from operating activities of $19.8 million
• Launch of Professional EHR version 9.0 and Allscripts Remote for Blackberry
• Introduction of "READY" process to accelerate new system implementations

"Allscripts second quarter financial results were strong across the entire business," said Glen Tullman, Chief Executive Officer of Allscripts. "We believe that 2010 will be the 'Year of the EHR' in which we expect to see significant acceleration in the adoption and utilization of healthcare information technology to improve quality and reduce cost. This is a once in a lifetime market opportunity, driven by the American Recovery and Reinvestment Act and Allscripts is uniquely positioned to win."

Second Quarter Results

Total revenue for the three months ended November 30, 2009 was $169.3 million, compared to $128.6 million for the same period last year. Non-GAAP revenue for the three months ended November 30, 2009 was $170.7 million, compared to non-GAAP revenue of $163.4 million for the same period last year.

Gross margin percentage was 56.4% for the second quarter of fiscal 2010, compared to 51.9% for the same period last year. Based on non-GAAP revenue and non-GAAP gross profit for each respective quarter, gross margin percentage was 56.8% for the second quarter of fiscal 2010, compared to 55.3% during the second quarter of fiscal 2009.

Net income for the three months ended November 30, 2009 was $15.8 million compared to a net loss of $6.0 million for the same period last year. Earnings for the three months ended November 30, 2009 were $0.10 cents per diluted share.

Non-GAAP net income for the three months ended November 30, 2009 was $24.0 million, compared to non-GAAP net income of $16.6 million for the same period last year, representing an increase of 45%. Non-GAAP earnings for the three months ended November 30, 2009 were $0.16 cents per diluted share.

As of November 30, 2009 the Company had cash and marketable securities of $90.5 million.

Six Month Results

Total revenue for the six months ended November 30, 2009 was $334.3 million, compared to $221.4 million for the six months ended November 30, 2008. Non-GAAP revenue for the six months ended November 30, 2009 was $338.3 million, compared to non-GAAP revenue of $328.1 million for the same period last year.

Gross margin percentage was 55.2% for the six months ended November 30, 2009 compared to 52.8% for the comparable period a year ago. Based on non-GAAP revenue and non-GAAP gross profit for each respective six month period, gross margin percentage was 55.7% for the first six months of fiscal 2010, compared to 54.6% during the first six months of fiscal 2009.

Net income for the six months ended November 30, 2009 was $28.7 million compared to a net loss of $0.6 million for the same period last year. Earnings for the six months ended November 30, 2009 were $0.19 cents per diluted share.

Non-GAAP net income for the six months ended November 30, 2009 was $46.1 million compared to non-GAAP net income of $31.5 million for the same period last year, representing an increase of 46%. Non-GAAP earnings for the six months ended November 30, 2009 were $0.31 cents per diluted share.

Business Outlook

"Second quarter results exceeded our plan," said Bill Davis, Chief Financial Officer of Allscripts. "We are especially pleased with our strong bookings in the first half of our fiscal year. Bookings in the first six months of fiscal 2010 reflect a 30 percent growth rate over the same period in our fiscal 2009. In addition, we benefited from an increase in gross and operating margins, while at the same time investing for future stimulus-driven industry growth."

Allscripts is affirming its revenue guidance of $680-$700 million for fiscal year 2010. The Company is raising net income guidance for fiscal 2010 to a range of $64.5-$66.0 million, which equates to diluted earnings per share of $0.41-$0.43. On a non-GAAP basis, the company is raising fiscal 2010 net income guidance to a range of $93.5-$95.0 million which equates to non-GAAP diluted earnings per share of $0.61-$0.63. Allscripts non-GAAP net income guidance assumes two adjustments from GAAP net income, approximately $13.5 million of annual acquisition-related amortization and $9.0 million in stock-based compensation expense, both net of tax.

Mr. Tullman concluded, "Looking ahead to the second half of our fiscal 2010, we will accelerate investment spending to further enhance Allscripts position as the leading provider of software, connectivity and information solutions to physicians and other healthcare providers."