-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JJ4Uiy5niOfRa4Yt1s3FyCYPBNU1WRfx6TwPCEQS6jp5lV4y1ybdwxVj6uV3THxN rC5ZX/f2kXHpm20lSPKoJg== 0001157523-04-000389.txt : 20040121 0001157523-04-000389.hdr.sgml : 20040121 20040121163033 ACCESSION NUMBER: 0001157523-04-000389 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040121 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040121 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ECLIPSYS CORP CENTRAL INDEX KEY: 0001034088 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 650632092 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-24539 FILM NUMBER: 04535429 BUSINESS ADDRESS: STREET 1: 777 E ATLANTIC AVE STE 200 CITY: DELRAY BEACH STATE: FL ZIP: 33483 BUSINESS PHONE: 5612431440 MAIL ADDRESS: STREET 1: 777 EAST ATLANTIC AVE SUITE 200 CITY: DELRAY BEACH STATE: FL ZIP: 33483 8-K 1 a4554542.txt EXLIPSYS 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 January 21, 2004 Date of Report (Date of earliest event reported) Eclipsys Corporation (Exact name of registrant as specified in its charter) Delaware 000-24539 65-0632092 (State of Incorporation) (Commission File Number) (I.R.S. Employer Identification Number) 1750 Clint Moore Road Boca Raton, Florida 33487 (Address of principal executive offices) (561) 322-4321 (Registrant's telephone number, including area code) Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (c) Exhibit 99.1 - Press Release of Eclipsys Corporation dated January 21, 2004. Item 12. Results of Operations and Financial Condition. On January 21, 2004, Eclipsys Corporation issued a press release announcing its fourth fiscal quarter and year ended December 31, 2003, financial results. The full text of Eclipsys Corporation's December 31, 2003 press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. The information contained in this report and the Exhibit attached hereto shall not be deemed "filed" for any purpose, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as expressly set forth by specific reference in such a filing. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ECLIPSYS CORPORATION Dated: January 21, 2004 /s/ Robert J. Colletti __________________________ Robert J. Colletti Senior Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit No. Description 99.1 Press release issued by Eclipsys Corporation dated January 21, 2004. EX-99 3 a4554542_ex991.txt ECLIPSYS EXHIBIT 99.1 Exhibit 99.1 Eclipsys Releases Financial Results for the Quarter and Year Ended December 31, 2003 BOCA RATON, Fla.--(BUSINESS WIRE)--Jan. 21, 2004--Eclipsys Corporation(R) (Nasdaq:ECLP), The Outcomes Company(R), today released results for the quarter and year ended December 31, 2003. The following table summarizes significant financial data (in millions, except per share data): ------------------------------------------------- As compared to ------------------------------------------------- ------- ------------------------ ------------------------ Three Three months ended Three months ended months December 31 September 30 ended Dec. 31 --------------------------------- ------------------------ 2003 2002 Change $ Change % 2003 Change $ Change % ------- ------------------------ ------------------------ Revenues $ 66.3 $ 53.4 $ 12.9 24.2% $ 68.2 $ (1.9) -2.8% ------- ------------------------ ------------------------ Net loss $(20.9) $(14.9) $ (6.0) 40.3% $(11.1) $ (9.8) 88.3% ------- ------------------------ ------------------------ Basic and diluted loss per share $(0.46) $(0.33) $(0.13) 39.4% $(0.24) $(0.22) 91.7% ------- ------------------------ ------------------------ Operating cash flows $ (3.8) $ 7.0 $(10.8) -154.3% $ 0.9 $ (4.7) -522.2% ------- ------------------------ ------------------------ Purchase of fixed assets $ 2.8 $ 3.2 $ (0.4) -12.5% $ 6.5 $ (3.7) -56.9% ------- ------------------------ ------------------------ Capitalized software development costs $ 2.7 $ 2.4 $ 0.3 12.5% $ 8.0 $ (5.3) -66.3% ------- ------------------------ ------------------------ ------- ------------------------ ------------------------ As of As of December 31 As of September 30 Dec. 31 --------------------------------- ------------------------ 2003 2002 Change $ Change % 2003 Change $ Change % ------- ------------------------ ------------------------ Cash, cash equivalents and marketable securities $151.7 $183.5 $(31.8) -17.3% $158.8 $(7.1) -4.5% ------- ------------------------ ------------------------ Days sales outstanding 75.0 79.0 (4.0) -5.1% 64.0 11.0 17.2% ------- ------------------------ ------------------------ Deferred revenue $101.2 $ 80.1 $ 21.1 26.3% $ 94.1 $ 7.1 7.5% ------- ------------------------ ------------------------ ------------------------ As compared to ------------------------ --------------------------------------- Year Year ended ended December 31 December 31 --------------------------------------- 2003 2002 Change $ Change % ------- ------------------------ Revenues $ 254.7 $218.1 $ 36.6 16.8% ------- ------------------------ Net loss $(56.0) $(29.8) $(26.2) 87.9% ------- ------------------------ Basic and diluted loss per share $ (1.23) $(0.67) $(0.56) 83.6% ------- ------------------------ Operating cash flows $ (3.4) $ 32.2 $(35.6) -110.6% ------- ------------------------ Purchase of fixed assets $ 16.0 $ 12.9 $ 3.1 24.0% ------- ------------------------ Capitalized software development costs $ 18.2 $ 8.8 $ 9.4 106.8% ------- ------------------------ ------- ------------------------ As of As of December 31 Dec. 31 -------- ------------------------ 2003 2002 Change $ Change % ------- ------------------------ Cash & cash equivalents $151.7 $183.5 $(31.8) -17.3% ------- ------------------------ Days sales outstanding 75.0 79.0 (4.0) -5.1% ------- ------------------------ Deferred revenue $101.2 $ 80.1 $ 21.1 26.3% ------- ------------------------ Fourth quarter results Fourth quarter 2003 revenues were $66.3 million compared to revenues of $53.4 million in Q4'02 and revenues of $68.2 million in Q3'03. Net loss for the quarter was $(20.9) million, compared to a net loss of $(14.9) million in the same period a year ago and a net loss of $(11.1) million in Q3'03. Basic and diluted net loss per share was $(0.46), compared to $(0.33) in Q4'02 and $(0.24) in Q3'03. Operating cash flows were $(3.8) million, compared to $7.0 million in Q4'02 and $932,000 in Q3'03. Cash, cash equivalents and marketable securities were $151.7 million as of December 31, 2003, down from $183.5 million as of December 31, 2002 and down sequentially from $158.8 million as of September 30, 2003. Days sales outstanding (DSOs) were 75 as of December 31, 2003, a decrease of 4 days from December 31, 2002, and an increase of 11 days from the preceding quarter. Deferred revenue (including current and long-term) was $101.2 million as of December 31, 2003, compared to $80.1 million as of December 31, 2002. Deferred revenue increased sequentially $7.1 million from $94.1 million as of September 30, 2003. Year ended December 31, 2003 Revenues for the year ended December 31, 2003 were $254.7 million, compared to $218.1 million in the prior year. Net loss for the period was $(56.0) million, as compared to $(29.8) million in the previous year. Basic and diluted net loss per share was $(1.23) compared to $(0.67) in the prior year. Operating cash flows decreased to $(3.4) million, compared to $32.2 million in 2002. Robert J. Colletti, senior vice president and chief financial officer, said: "Given the difficult challenges we faced this quarter, we are pleased with our fourth quarter revenues, which were the third highest in the history of the company, last quarter being the highest. In assessing our fourth quarter results there are two significant items to note. First, included in fourth quarter results was a charge of $4.4 million related to anticipated costs associated with our previously announced SunriseXA response time issue. Second, lower capitalization of software development costs negatively impacted earnings, despite lower gross research and development spending. The amounts capitalized during the quarter were $2.7 million compared to $8.0 million in the prior quarter. Overall, we're pleased with the progress we made during the quarter." Paul L. Ruflin, Eclipsys president and CEO, said: "We continued our progress in the marketplace in the fourth quarter of 2003 largely because of the support and loyalty we have received from our customers over the past 90 days. Our customers remain our top priority as we focus on providing them with solutions that create value for their organizations. We will continue to concentrate on growing our business and have made a number of changes within the company that position us for growth. We believe that 2004 will be a transition year for Eclipsys as we capitalize on the market's strong interest in healthcare information technology solutions and we begin to benefit from our subscription-based business model." Investor teleconference January 22 Eclipsys senior executives will discuss the results during an investor community teleconference scheduled for 9 a.m. Eastern time Thursday, January 22. Persons interested in participating in the teleconference should call (888) 243-1745 within 10 minutes before the conference is slated to begin. For listen-only mode, participants can go to http://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 January 22 by visiting http://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 http://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 September 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 Statements of Operations - Unaudited (000's Omitted) - --------------------------------------------------------------------- Three Months Ended December 31, ------------------- 2003 2002 Change $ Change % ------------------------------------- Revenues: Systems and services $60,334 $49,836 $10,498 21.1% Hardware 5,973 3,612 2,361 65.4% --------- --------- -------- Total revenues 66,307 53,448 12,859 24.1% --------- --------- -------- Costs and expenses: Cost of systems and services revenues 41,202 31,996 9,206 28.8% Cost of hardware revenues 4,855 2,978 1,877 63.0% Sales and marketing 17,693 15,451 2,242 14.5% Research and development 17,154 12,645 4,509 35.7% General and administrative 3,681 3,958 (277) -7.0% Depreciation and amortization 2,862 2,281 581 25.5% --------- --------- -------- Total costs and expenses 87,447 69,309 18,138 26.2% --------- --------- -------- Loss from operations (21,140) (15,861) (5,279) 33.3% Interest income, net 287 1,009 (722) -71.6% --------- --------- -------- Loss before income taxes (20,853) (14,852) (6,001) 40.4% Provision for income taxes - - - --------- --------- -------- Net Loss $(20,853) $(14,852) $(6,001) 40.4% ========= ========= ======== Earnings per share: Basic loss per share $(0.46) $(0.33) $(0.13) 39.4% ========= ========= ======== Diluted loss per share $(0.46) $(0.33) $(0.13) 39.4% ========= ========= ======== Weighted average shares outstanding: Basic 45,728 44,936 ========= ========= Diluted 45,728 44,936 ========= ========= Eclipsys Corporation Consolidated Statements of Operations - Unaudited (000's Omitted) - ---------------------------------------------------------------------- Three Months Ended September 30, ------------------- 2003 Change $ Change % --------------------------- Revenues: Systems and services $61,559 $(1,225) -2.0% Hardware 6,591 (618) -9.4% --------- --------- Total revenues 68,150 (1,843) -2.7% --------- --------- Costs and expenses: Cost of systems and services revenues 35,855 5,347 14.9% Cost of hardware revenues 5,551 (696) -12.5% Sales and marketing 17,766 (73) -0.4% Research and development 14,633 2,521 17.2% General and administrative 3,063 618 20.2% Depreciation and amortization 2,761 101 3.7% --------- --------- Total costs and expenses 79,629 7,818 9.8% --------- --------- Loss from operations (11,479) (9,661) 84.2% Interest income, net 412 (125) -30.3% --------- --------- Loss before income taxes (11,067) (9,786) 88.4% Provision for income taxes - --------- --------- Net Loss $(11,067) $(9,786) 88.4% ========= ========= Earnings per share: Basic loss per share $(0.24) $(0.22) 91.7% ========= ========= Diluted loss per share $(0.24) $(0.22) 91.7% ========= ========= Weighted average shares outstanding: Basic 45,488 ========== Diluted 45,488 ========== Eclipsys Corporation Consolidated Statements of Operations - Unaudited (000's Omitted) -------------------------------------------------------------------- Year Ended December 31, ------------------- 2003 2002 Change $ Change % -------------------------------------- Revenues: Systems and services $233,971 $203,218 $30,753 15.1% Hardware 20,708 14,850 5,858 39.4% --------- --------- --------- Total revenues 254,679 218,068 36,611 16.8% --------- --------- --------- Costs and expenses: Cost of systems and services revenues 143,761 119,044 24,717 20.8% Cost of hardware revenues 17,252 12,270 4,982 40.6% Sales and marketing 69,734 53,175 16,559 31.1% Research and development 58,306 46,228 12,078 26.1% General and administrative 13,528 12,434 1,094 8.8% Depreciation and amortization 10,492 8,531 1,961 23.0% --------- --------- --------- Total costs and expenses 313,073 251,682 61,391 24.4% --------- --------- --------- Loss from operations (58,394) (33,614) (24,780) 73.7% Interest income, net 2,430 4,016 (1,586) -39.5% --------- --------- --------- Loss before income taxes (55,964) (29,598) (26,366) 89.1% Provision for income taxes - 165 (165) 100.0% --------- --------- --------- Net Loss $(55,964) $(29,763) $(26,201) 88.0% ========= ========= ========= Earnings per share: Basic loss per share $(1.23) $(0.67) $(0.56) 83.6% ========= ========= ========= Diluted loss per share $(1.23) $(0.67) $(0.56) 83.6% ========= ========= ========= Weighted average shares outstanding: Basic 45,405 44,711 ========= ========= Diluted 45,405 44,711 ========= ========= Eclipsys Corporation Consolidated Balance Sheets - Unaudited As of December 31, 2003 and December 31, 2002 (000's Omitted) December 31, December 31, 2003 2002 ----------- ------------ Assets Current assets: Cash and cash equivalents $151,683 $183,500 Accounts receivable, net 54,903 46,822 Inventory 530 656 Other current assets 14,993 16,921 ----------- ------------ Total current assets 222,109 247,899 Property and equipment, net 32,304 26,800 Capitalized software development costs, net 25,260 16,375 Acquired technology, net - 267 Goodwill 454 454 Other assets 15,656 9,402 ----------- ------------ Total assets $295,783 $301,197 =========== ============ Liabilities and Stockholders' Equity Current liabilities: Deferred revenue $91,782 $79,235 Accrued compensation costs 17,189 14,442 Other current liabilities 33,585 13,854 ----------- ------------ Total current liabilities 142,556 107,531 Deferred revenue 9,390 843 Other long-term liabilities 684 226 Stockholders' equity: Common stock 460 451 Additional paid-in-capital 411,634 405,380 Unearned stock compensation (795) (1,021) Accumulated deficit (267,779) (211,814) Accumulated other comprehensive loss (367) (399) ----------- ------------ Total stockholders' equity 143,153 192,597 ----------- ------------ Total liabilities and stockholders' equity $295,783 $301,197 =========== ============ CONTACT: Eclipsys Corporation, Boca Raton Media: Judy Barnett, 561-322-4351 judy.barnett@eclipsys.com or Investors: Robert J. Colletti, 561-322-4650 investor.relations@eclipsys.com -----END PRIVACY-ENHANCED MESSAGE-----