EX-99 4 a4496356_ex992.txt ECLIPSYS EXHIBIT 99.2 Exhibit 99.2 Eclipsys Releases Financial Results for the Quarter Ended September 30, 2003 BOCA RATON, Fla.--(BUSINESS WIRE)--Oct. 20, 2003--Eclipsys Corporation(R) (Nasdaq:ECLP), The Outcomes Company(R), today released results for the fiscal third quarter ended September 30, 2003. Third quarter 2003 revenues were $68.2 million compared to revenues of $47.5 million in Q3'02 and revenues of $63.4 million in Q2'03. Net loss for the quarter was $(11.1) million, compared to a net loss of $(17.2) million in the same period a year ago and a net loss of $(11.0) million in Q2'03. Basic net loss per share was $(0.24), compared to $(0.38) in Q3'02 and $(0.24) in Q2'03. Operating cash flows were $0.8 million, compared to $3.8 million in Q3'02 and $(1.7) million in Q2'03. Cash and marketable securities were $158.8 million as of September 30, 2003, down from $181.4 million as of September 30, 2002 and down sequentially from $170.8 million as of June 30, 2003. The company used $12.0 million of cash during the quarter, which is a $2.9 million increase over last quarter. This increase was primarily related to the company's research and development initiatives. The company capitalized $8.0 million of software development costs during the quarter. Days sales outstanding (DSOs) were 64 as of September 30, 2003, a decrease of 32 days from September 30, 2002, and a decrease of 4 days from the preceding quarter. Deferred revenue (including current and long-term) was $94.1 million as of September 30, 2003, compared to $68.1 million as of September 30, 2002. Deferred revenue increased sequentially $6.8 million from $87.3 million as of June 30, 2003. Eclipsys separately announced today that it has identified response time issues with some components of SunriseXA(TM), the newest version of its Sunrise family of products. Recognizing that response time is of the utmost importance to its customers, Eclipsys has developed a strategy designed to allow SunriseXA customers to continue their deployment of SunriseXA, and to enable Eclipsys to continue its development of planned advanced SunriseXA functionality. Eclipsys has not determined what impact this strategy will have on future operating results. Accordingly, Eclipsys is not able to provide guidance with respect to Q4 2003 and 2004 at this time. Robert J. Colletti, senior vice president and chief financial officer, said, "We are pleased with our revenue during the quarter, the highest in the history of our company. However, we are disappointed that our results were adversely affected by a $1.2 million impairment charge related to the write-down of certain elements of capitalized SunriseXA software development costs." Paul L. Ruflin, Eclipsys president and CEO, said, "Our market continues to show no abatement from regulatory and industry pressures to upgrade technology. We believe our SunriseXA strategy will position us to continue to pursue market opportunities. Customers will remain our foremost priority, and we will continue our focus on providing them with solutions that create value for their organizations." Investor teleconference October 21 Eclipsys senior executives will discuss the results during an investor community teleconference scheduled for 9 a.m. Eastern time Tuesday, October 21. Persons interested in participating in the teleconference should call (800) 621-5270 within 10 minutes before the conference is slated to begin. For listen-only mode, participants can go to www.eclipsys.com about 10 minutes prior to the conference call to register and to download the necessary audio software. An audio replay will be available for approximately 48 hours beginning 11 a.m. Eastern time October 21 by visiting www.eclipsys.com. About Eclipsys Eclipsys is a leading provider of advanced clinical, financial and management information software and service solutions to more than 1,500 healthcare facilities. Eclipsys empowers healthcare organizations to improve patient safety, revenue cycle management and operational efficiency through innovative information solutions. For more information, see www.eclipsys.com or e-mail info@eclipsys.com. Statements in this news release concerning future results, performance or expectations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All forward-looking statements included in this document are based upon information available to Eclipsys as of the date hereof and Eclipsys assumes no obligation to update any such forward-looking statements. Because such statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks include several risks in connection with our SunriseXA strategy, including the uncertainty of the time and costs required to implement the strategy, the potential that our strategy could change, the potential that we may encounter technical difficulties in implementing our strategy, and the potential that the changes to our products may affect customer demand. Other risks include potential financial constraints and other factors faced by the healthcare industry, changing customer requirements and other risks described in the filings of Eclipsys with the Securities and Exchange Commission, including its quarterly report on Form 10-Q for the quarter ended June 30, 2003. Eclipsys, Eclipsys Corporation and The Outcomes Company are registered trademarks and SunriseXA and the phrase "better healthcare through knowledge" are trademarks of Eclipsys Technologies Corporation. Other product and company names in this news release are trademarks or registered trademarks of their respective companies. Eclipsys Corporation Consolidated Balance Sheets - Unaudited As of September 30, 2003 and December 31, 2002 (000's Omitted) September December 30, 2003 31, 2002 ----------- ----------- Assets Current assets: Cash and cash equivalents $117,361 $183,500 Marketable securities 41,444 - Accounts receivable, net 48,772 46,822 Inventory 659 656 Other current assets 13,499 16,921 ----------- ----------- Total current assets 221,735 247,899 Property and equipment, net 32,356 26,800 Capitalized software development costs, net 24,882 16,375 Acquired technology, net 19 267 Goodwill 454 454 Other assets 15,150 9,402 ----------- ----------- Total assets $294,596 $301,197 =========== =========== Liabilities and Stockholders' Equity Current liabilities: Deferred revenue $86,055 $79,235 Accrued compensation costs 11,957 14,442 Other current liabilities 26,350 13,854 ----------- ----------- Total current liabilities 124,362 107,531 Deferred revenue 8,049 843 Other long-term liabilities 675 226 Stockholders' equity: Common stock 457 451 Additional paid-in-capital 409,327 405,380 Unearned stock compensation (852) (1,021) Accumulated deficit (246,926) (211,814) Accumulated other comprehensive loss (496) (399) ----------- ----------- Total stockholders' equity 161,510 192,597 ----------- ----------- Total liabilities and stockholders' equity $294,596 $301,197 =========== =========== Eclipsys Corporation Consolidated Statements of Operations - Unaudited (000's Omitted) Three Months Ended September 30, 2003 2002 ------------- ------------- Revenues: Systems and services $61,559 $44,521 Hardware 6,591 3,028 ------------- ------------- Total revenues 68,150 47,549 ------------- ------------- Costs and expenses: Cost of systems and services revenues 35,855 30,924 Cost of hardware revenues 5,551 2,479 Sales and marketing 17,766 14,487 Research and development 14,633 12,129 General and administrative 3,063 3,218 Depreciation and amortization 2,761 2,218 ------------- ------------- Total costs and expenses 79,629 65,455 ------------- ------------- Loss from operations (11,479) (17,906) Interest income, net 412 732 ------------- ------------- Loss before income taxes (11,067) (17,174) Provision for income taxes - - ------------- ------------- Net loss $(11,067) $(17,174) ============= ============= Earnings per share: Basic loss per share $(0.24) $(0.38) ============= ============= Diluted loss per share $(0.24) $(0.38) ============= ============= Weighted average shares outstanding: Basic 45,488 44,774 ============= ============= Diluted 45,488 44,774 ============= ============= Eclipsys Corporation Consolidated Statements of Operations - Unaudited (000's Omitted) Nine Months Ended September 30, 2003 2002 -------------- -------------- Revenues: Systems and services $173,637 $153,383 Hardware 14,735 11,237 -------------- -------------- Total revenues 188,372 164,620 -------------- -------------- Costs and expenses: Cost of systems and services revenues 102,559 87,047 Cost of hardware revenues 12,398 9,292 Sales and marketing 52,040 37,725 Research and development 41,152 33,584 General and administrative 9,847 8,476 Depreciation and amortization 7,630 6,250 -------------- -------------- Total costs and expenses 225,626 182,374 -------------- -------------- Loss from operations (37,254) (17,754) Interest income, net 2,143 3,007 -------------- -------------- Loss before income taxes (35,111) (14,747) Provision for income taxes - 165 -------------- -------------- Net loss $(35,111) $(14,912) ============== ============== Earnings per share: Basic loss per share $(0.78) $(0.33) ============== ============== Diluted loss per share $(0.78) $(0.33) ============== ============== Weighted average shares outstanding: Basic 45,283 44,631 ============== ============== Diluted 45,283 44,631 ============== ============== CONTACT: Eclipsys (media) Judy Barnett, 561-322-4351 judy.barnett@eclipsys.com or (investors) Robert J. Colletti, 561-322-4650 investor.relations@eclipsys.com