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

Date of report (Date of earliest event reported): March 2, 2011

ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	000-32085	36-4392754
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

222 Merchandise Mart Plaza, Suite 2024, Chicago, Illinois 60654

(Address of Principal Executive Offices) (Zip Code)

Registrant’s Telephone Number, Including Area Code: (312) 506-1200

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure.

Attached as Exhibit 99.1 hereto is an Investor Presentation dated March 2, 2011, which is incorporated herein by reference.

The information contained in, or incorporated into, this Item 7.01, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any registration statement or other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference to such filing. This Report will not be deemed an admission as to the materiality of any information in this Report that is being disclosed pursuant to Regulation FD.

Please refer to page 2 of Exhibit 99.1 for a discussion of certain forward-looking statements included therein and the risks and uncertainties related thereto.

Item 9.01 Financial Statements, Pro Forma Financial Information and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Investor Presentation dated March 2, 2011

SIGNATURE

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.

	ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.
Date: March 2, 2011	By:	/s/ William J. Davis
		William J. Davis
		Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Investor Presentation dated March 2, 2011

EX-99.1

1

Investor Presentation

March 2011

Exhibit 99.1

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2010 Allscripts Healthcare Solutions, Inc.

A Connected Community of Health

2

Forward Looking Statements

This

presentation

contains

forward-looking

statements

within

the

meaning

of

the

federal

securities

laws.

Statements

regarding

future

events

or

developments,

our

future

performance,

as

well

as

management's

expectations,

beliefs,

intentions,

plans,

estimates

or

projections

relating

to

the

future

are

forward-looking

statements

within

the

meaning

of

these

laws.

These

forward-looking

statements

are

subject

to

a

number

of

risks

and

uncertainties,

some

of

which

are

outlined

below.

As

a

result,

no

assurances

can

be

given

that

any

of

the

events

anticipated

by

the

forward-looking

statements

will

transpire

or

occur,

or

if

any

of

them

do

so,

what

impact

they

will

have

on

our

results

of

operations

or

financial

condition.

Such

risks,

uncertainties

and

other

factors

include,

among

other

things:

the

risk

that

we

will

not

achieve

the

strategic

benefits

of

the

merger

(the

“Eclipsys

Merger”)

with

Eclipsys

Corporation

(“Eclipsys”);

the

possibility

that

the

expected

synergies

and

cost

savings

of

the

Eclipsys

Merger

will

not

be

realized,

or

will

not

be

realized

within

the

expected

time

period;

the

risk

that

our

business

will

not

be

integrated

successfully

with

the

business

of

Eclipsys;

disruption

from

the

Eclipsys

Merger

and

related

transactions

making

it

more

difficult

to

maintain

business

relationships

with

customers,

partners

and

others;

unexpected

requirements

to

achieve

interoperability

certification

pursuant

to

the

Health

Information

Technology

for

Economic

and

Clinical

Health

Act,

with

resulting

increases

in

development

and

other

costs

for

us;

the

volume

and

timing

of

systems

sales

and

installations,

the

length

of

sales

cycles

and

the

installation

process

and

the

possibility

that

our

products

will

not

achieve

or

sustain

market

acceptance;

the

timing,

cost

and

success

or

failure

of

new

product

and

service

introductions,

development

and

product

upgrade

releases;

competitive

pressures

including

product

offerings,

pricing

and

promotional

activities;

errors

or

similar

problems

in

our

software

products;

the

outcome

of

any

legal

proceeding

that

has

been

or

may

be

instituted

against

us

and

others;

compliance

obligations

under

existing

laws,

regulations

and

industry

initiatives

and

future

changes

in

laws

or

regulations

in

the

healthcare

industry,

including

possible

regulation

of

our

software

by

the

U.S.

Food

and

Drug

Administration;

the

possibility

of

product-related

liabilities;

our

ability

to

attract

and

retain

qualified

personnel;

the

implementation

and

speed

of

acceptance

of

the

electronic

record

provisions

of

the

American

Recovery

and

Reinvestment

Act

of

2009,

as

well

as

elements

of

the

Patient

Protection

and

Affordable

Care

Act

(aka

health

reform)

which

pertains

to

health

IT

adoption;

maintaining

our

intellectual

property

rights

and

litigation

involving

intellectual

property

rights;

legislative,

regulatory

and

economic

developments;

risks

related

to

third-party

suppliers

and

our

ability

to

obtain,

use

or

successfully

integrate

third-party

licensed

technology

and

breach

of

our

security

by

third

parties.

See

our

Annual

Report

on

Form 10-

K

for

the

transition

period

ended

December

31,

2010

and

other

public

filings

with

the

SEC

for

a

further

discussion

of

these

and

other

risks

and

uncertainties

applicable

to

our

business.

The

statements

herein

speak

only

as

of

their

date

and

we

undertake

no

duty

to

update

any

forward-looking

statement

whether

as

a

result

of

new

information,

future

events

or

changes

in

expectations.

. 

3

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A Connected Community of Health

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Allscripts Corporate Snapshot

Our Clients

>

•

180,000 Providers

•

50,000 Physician Practices

•

1,500 Hospitals

•

10,000 Post Acute Facilities

•

27,000 Clinicians In Patients’

Homes Every Day

Our Company

•

One Complete Set of Solutions

•

5,500 Employees

•

$1.3BB 2010 Non-GAAP Revenue

•

$148MM 2010 Non-GAAP Net

Income

>

Note:

Please

see

reconciliation

and

footnotes

in

appendix

to

this

presentation

regarding

non-GAAP

financial

measures.

Information

also

available

at

http://investor.allscripts.com

Allscripts Differentiates Itself Competitively With Leading Market Share Across Acute, Ambulatory

and Post-Acute Providers, a Key Consideration for Accountable Care Organizations

5

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Investment Highlights

Leading healthcare IT company with the broadest set of capabilities across every

venue of care including physicians, hospitals, post-acute and homecare

The most utilized clinical solutions enabling health care providers to fully capitalize

on the $30BB federal stimulus program

Leadership in technology and innovation uniquely positions Allscripts to

aggressively compete for the $43BB healthcare IT solutions market

A highly attractive financial profile

with high recurring revenue, significant

operating leverage and cost synergy opportunities and strong free cash flow

Proven

and

experienced

“industrial

strength”

management

team

>

>

>

>

>

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The Time is NOW

•

Quality Issues

•

Medical Errors / Safety

Concerns

•

Rising Cost

•

Significant Waste

A National

Problem

•

$43BB(1)

Opportunity

•

$30BB in Stimulus

Funding

•

~15% Penetration in

Physician Practices

•

Rise of the Employed

Physicians

•

Hospitals Driving

Adoption

A Market that

is Ready

We are at the

beginning

of

what

we

expect will be the

single fastest

transformation of any

industry in US history

A Significant

Opportunity

>

>

Source: McKinsey & Company

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Addressing the Entire Market Opportunity

Acute/Ambulatory EHR Opportunity 2010-2014 = ~$43BB

Source: McKinsey & Company

Ambulatory Stand-Alone

Opportunity

Acute Stand-Alone

Opportunity

Stand-Alone Market

Integrated Market

Integrated/Complete

Solution Across

Hospitals and

Physician Practices

$16BB

$10BB

$17BB

>

>

A Complete Portfolio Addresses the Entire Care Continuum

$45

$40

$35

$30

$25

$20

$15

$10

$5

$0

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9

Ambulatory Market Potential

Practice Size

Total # of Practices

EHR Penetration

(FY09/10)

1-3 Physicians

163,000

~13%

4-9 Physicians

27,000

~22%

10-25 Physicians

8,000

~33%

26+ Physicians

2,000

~50%

Total

200,000

~15%

Source: SK&A = SK&A Information Services which sells databases for sales and marketing success in healthcare industry

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December

2013

Incentive Program

Has Begun!

January

2011

ARRA

Announced

Q1

2009

Final Rules

Issued

July

2010

Increased Certainty for Widespread

EHR Adoption

Physician

Penetration

(1)

~20%

(1)

~20%

estimate

based

on

number

of

ambulatory

physicians;

penetration

as

a

percentage

of

number

of

physician

practices

is

~11%

(2)

Hospitals >200 beds

70% of Funding Used

Source: National Center for Health Statistics

~ 400 Hospitals

Will Replace Clinical

Systems

(2)

TODAY

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Allscripts: Competitive Differentiation

•

The Largest Network with a

Client Base of 180,000

Physicians, 1,500 Hospitals

and 10,000 Post Acute Care

Providers

•

The Unique Ability to Truly

Connect a Community

•

One Patient Record Across

an Organization and the

Community –

One Source of

Truth

One

Network.

The largest connected

network in the nation…

and in your community.

One

Platform.

Open, flexible, and

innovative to help you

connect inside and

outside your

organization.

One

Patient.

A complete portfolio

that delivers a single

patient record across

your community.

•

Comprehensive, Integrated

Solutions for all Settings

•

Rapid Implementation Approach

to Attain “Meaningful Use”

•

A Track Record of Innovation

with a ‘Future State’

Clinical/Financial Informatics

Capability

•

Common Microsoft platform and

a shared ‘open architecture’

approach, simplifying the

connection to third-party

applications across every care

setting

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Hospitals

Physician Practices

Post Acute Facilities &

Agencies

•

The ‘Hub’:

Over 1,500 Hospitals including 40%

of

“America’s

Best

Hospitals”

as

Clients

•

The ‘Spokes’:

Over 180,000 MDs and 10,000

Post Acute Care Organizations are Connected

to other Practices, Patients, Pharmacies, Payors,

Clinical Labs and Hospitals

One

Network:

The

Largest

Community

in

the

Nation

One Platform: A Complete, Integrated Solutions Portfolio

Clinical

Financial

Administrative

Analytics

Services

Community Exchange

Community Record

Helios

Remote Hosting

Patient Financials

EPSi

Enterprise Registration

Outsourcing

Enterprise Scheduling

Access Management

Consulting

Decision Support

Record Manager

Network/Desktop

Patient Flow

Financial Manager

Clinical Analytics

Pharmacy

Emergency Care

Laboratory

Knowledge-Based

Charting

Knowledge-Based

Medication

Administration

Acute Content

Clinical Manager

Radiology

Enterprise Identifier

Education

13

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One Patient: Critical Patient Data Flows Freely

Acute Solutions

(Sunrise)

Ambulatory

Solutions

Post Acute

Solutions

Patient Records

Labs

Prescriptions

X-Rays

Referrals

Results

Orders

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2010 Allscripts Healthcare Solutions, Inc.

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The New Architecture of Healthcare

Old World

(Monolithic Mainframe)

Hospitals

Owned Physician Practices

Rehab Clinics

New World

(Modern Platform)

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2010 Allscripts Healthcare Solutions, Inc.

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16

Proven Management Team

Executive

Position

Experience

Glen Tullman

CEO

30+ Yrs

Bill Davis

CFO

19+ Yrs

Lee Shapiro

President

30+ Yrs

Eileen McPartland

COO

25+ Yrs

Steve Lalonde

SVP Sales

20+ Yrs

Laurie McGraw

Chief Client Officer

20+ Yrs

John Gomez

President, Product Strategy &

Development

25+ Yrs

Diane Adams

EVP, Culture and Talent

20+ Yrs

Management team with a track record of operational execution, strong financial performance, integrating

acquisitions and driving shareholder value

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2010 Allscripts Healthcare Solutions, Inc.

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17

Board of Directors

Executive

Position

Philip M. Pead

Chairman

Dennis Chookaszian

Director

Eugene V. Fife

Director

Marcel L. Gamache

Director

Philip Green

Director

Edward Kangas

Director

Michael Kluger

Director

Glen Tullman

Director, CEO

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2010 Allscripts Healthcare Solutions, Inc.

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18

Financial Overview

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2010 Allscripts Healthcare Solutions, Inc.

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19

Fourth Quarter 2010 Financial Highlights

Achieving Results

Healthy Financial

Position

High Quality Growth

•

First Full Quarter of Consolidated Operations

•

Significant Cross Sales Across Ambulatory and Acute Solutions

•

University Hospitals; University of Kentucky; Maimonides, others

•

Sales Momentum Reflects Comprehensive Solutions, Ability to

Execute and Expanding Market Demand

•

Total Bookings of $288.2 million, ~34% over Q3 2010

•

Record Ambulatory Bookings Performance of $140.4 million

•

Acute Care Bookings of $147.8 million, or 31% growth in 2010

•

Non-GAAP Revenue Growth 10% y/y

•

Non-GAAP Operating Margin of 20.6% (vs. 19.1% Q3 2010)

•

Progress on Merger Related Cost Synergies

•

Free Cash Flow(1)

of ~$41MM

•

Repaid $81 million of Debt as of 12/31/10

(1) Free Cash Flow  equals cash flow from operations, after capital expenditures and capitalized software expenditures

Note: Please see reconciliation and footnotes in appendix to this presentation regarding non-GAAP financial measures.  Information also available at http://investor.allscripts.com

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2010 Allscripts Healthcare Solutions, Inc.

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20

Historical Consolidated Performance

Combined Non-GAAP Operating Income ($millions)

Combined Non-GAAP Operating Income ($millions)

Non-GAAP Revenue

CY 2009: $1,188MM

Non-GAAP Revenue

CY 2009: $1,188MM

Non-GAAP Revenue

CY 2010: $1,300MM

Non-GAAP Revenue

CY 2010: $1,300MM

$128

$0

$50

$100

$150

$200

$250

CY2009

CY2010

3 Months

12/31/09

$212

$251

$55

$69

3 Months

12/31/10

Ambulatory

56%

Acute

44%

Ambulatory

58%

Acute

42%

Note:  Ambulatory revenue refers to legacy Allscripts, as reported; Acute revenue refers to legacy Eclipsys, as reported

Please see reconciliation and footnotes in appendix to this presentation regarding non-GAAP financial measures.  Information also available at

http://investor.allscripts.com

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2010 Allscripts Healthcare Solutions, Inc.

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21

Significant Key Cost Synergies

Projected Cost Synergies Over Three Years

•

Duplicate management

structure

•

Duplicate public company

costs

•

Duplicate back-end office

and system integration

•

Marketing

Key Cost

Synergy Drivers

CY2011

~$25MM

~$35MM

~$40MM

CY2012

CY2013 &

Beyond

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22

Revenue Cross-Sell Opportunity of $1.25BB

Incremental Revenue Opportunity

$16BB Integrated Market Provides Additional Opportunity

Sunrise Clinical Manager,

Patient Flow, EPSi

Care Management, Emergency

Department, Homecare,

Ambulatory EHR

Sell

Ambulatory 

Solutions to

Acute Care

Base

Total

~$430MM

~$820MM

~$1,250MM

=

+

Sell Acute

Solutions to

Ambulatory

Care Base

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2010 Allscripts Healthcare Solutions, Inc.

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Non-GAAP

Revenue

Non-GAAP

Operating

Margin

Non-GAAP

Net Income

Non-GAAP Financial Outlook(1)

($ in millions; except per share amounts)

CY 2010 Actual

Non-GAAP

Diluted EPS

$1,300

19%

$148

$0.76

CY 2011

$1,425 -

$1,450

21%

$167 -

$176

$0.86 -

$0.90

2010 to 2011

Change

10 -

12%

13 -

19%

13 -

18%

--

(1) Guidance provided by the company in a press release on February  15, 2011. This presentation does not subsequently update or reaffirm Allscripts financial guidance.

Note:

Please

see

reconciliation

and

footnotes

in

appendix

to

this

presentation

regarding

non-GAAP

financial

measures.

Information

also

available

at

http://investor.allscripts.com

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2010 Allscripts Healthcare Solutions, Inc.

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24

Strong Free Cash Flow Generation

1

EBITDA is calculated as net income plus income tax expense, interest expense, stock-based compensation expense, depreciation & amortization, deferred revenue adjustments,

certain one-time and transaction-related expenses, and non-recurring losses on the sale of investments minus non-recurring gains on the sale of assets.

Note:

Please

see

reconciliation

and

footnotes

in

appendix

to

this

presentation

regarding

non-GAAP

financial

measures.

Information

also

available

at

http://investor.allscripts.com

Capitalization

Actual

12/31/2010

Cash and Marketable Securities

$131

Revolver ($250mm)

25

Term Loan

464

Total Debt

$489

Equity

1,384

Total Capitalization

$1,873

Credit Statistics

LTM EBITDA

(1)

$304

Total Debt / LTM EBITDA

(1)

1.6x

Debt / Capitalization

26.1%

•

Reduced debt by

$81MM since merger

closed

•

Required principal

payments in 2011

total $29.4MM

•

Borrowing costs

currently <4% with

approximately 60%

at a fixed rate

25

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26

•

GAAP

–

non-GAAP

revenue

and

net

income

reconciliation

for

the

twelve

months

ended

December

31,

2010.

Appendix: Non-GAAP Reconciliation

Non-GAAP

Total revenue, as reported

$1,191.5

     Deferred revenue adjustment

29.2

     Eclipsys results pre-merger period (7/1/10-8/23/10)

79.5

Total non-GAAP revenue

$1,300.3

Net income, as reported

$36.4

     Deferred revenue adjustment

17.7

     Acquisition-related amortization

27.7

     Stock-based compensation expense

16.9

     Transaction-related expense

38.2

     ARS Sales

0.9

     Tax rate alignment

6.8

     Eclipsys results pre-merger period (7/1/10-8/23/10)

2.9

Non-GAAP net income

$147.5

Allscripts Healthcare Solutions, Inc.

Non-GAAP Financial Information - 2010 Proforma Financial Information

(In millions)

(unaudited)

2010 Results

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27

•

GAAP –

non-GAAP revenue growth for the three months ended December 31, 2010.

Appendix: Non-GAAP Reconciliation

11/30/09

12/31/09

Q4 2009

Growth

12/31/10

Allscripts

Eclipsys

Total

y/y

Total revenue, as reported

$316.2

$169.3

$133.7

$303.0

4.4%

     Deferred revenue adjustment

20.9

1.4

2.0

3.4

Total non-GAAP revenue

$337.1

$170.7

$135.7

$306.4

10.0%

Allscripts Healthcare Solutions, Inc.

Condensed Non-GAAP Financial Information

(In millions)

(Unaudited)

Three Months

Ended

Three Months Ended

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•

GAAP –

non-GAAP operating margin reconciliation for the three months ended December 31, 2010 and

September 30, 2010.

Appendix: Non-GAAP Reconciliation

Three Months Ended

12/31/10

9/30/10

9/30/10

Q3 2010

Q4 2010

Allscripts

Eclipsys

Non-GAAP

Total revenue, as reported

$316.2

$191.2

$51.2

$242.4

Deferred revenue adjustment

20.9

0.5

6.7

7.2

Eclipsys results pre-merger period (7/1/10-8/23/10)

-

0.0

79.5

79.5

Total non-GAAP revenue

$337.1

$191.7

$137.4

$329.1

Operating income, as reported

$9.5

$5.5

($7.2)

($1.7)

Deferred revenue adjustment

20.9

0.5

6.7

7.2

Acquisition-related amortization

17.4

5.6

4.9

10.5

Stock-based compensation expense

3.7

6.6

0.0

6.6

Transaction-related expense

17.8

26.6

9.1

35.7

Restructuring

0.0

0.0

0.0

-

Eclipsys results pre-merger period (7/1/10-8/23/10)

-

0.0

4.7

4.7

Total non-GAAP operating income

$69.3

$44.8

$18.2

$63.0

Total non-GAAP operating income as a

percentage of non-GAAP Revenue

20.6%

-

-

19.1%

Allscripts Healthcare Solutions, Inc.

Condensed Non-GAAP Financial Information

(In millions)

(unaudited)

Three Months Ended

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•

GAAP

–

non-GAAP

revenue

reconciliation

for

the

twelve

months

ended

November

30,

2009

(Allscripts)

and

twelve months ended December 31, 2009 (Eclipsys).

Appendix: Non-GAAP Reconciliation

Allscripts

Eclipsys

Non-GAAP

Combined

Twelve Months Ended

November 30, 2009

December 31, 2009

Total revenue, as reported

661.1

519.1

1,180.2

Deferred revenue adjustment

9.7

8.0

17.7

Elimination of prepackaged medications

(9.7)

(9.7)

Total non-GAAP revenue

661.1

527.1

1,188.2

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30

•

GAAP –

non-GAAP operating income reconciliation for the three and twelve months ended December 31,

2009 (Eclipsys) and November 30, 2009 (Allscripts).

Appendix: Non-GAAP Reconciliation

2/28/09

3/31/09

Q1 2009

5/31/09

6/30/09

Q2 2009

8/31/09

9/30/09

Q3 2009

11/30/09

12/31/09

Q4 2009

11/30/09

12/31/09

CY 2009

Allscripts

Eclipsys

Non-GAAP

Allscripts

Eclipsys

Non-GAAP

Allscripts

Eclipsys

Non-GAAP

Allscripts

Eclipsys

Non-GAAP

Allscripts

Eclipsys

Non-GAAP

Operating income, as reported

$22.8

($0.1)

$22.7

$23.6

($2.2)

$21.4

$21.6

$4.5

$26.1

$26.7

$7.2

$33.9

$94.7

$9.4

$104.1

Deferred revenue adjustment (1)

3.1

1.5

4.6

2.6

3.1

5.7

2.6

0.5

3.1

1.4

1.8

3.2

9.7

6.9

16.6

Acquisition-related amortization (5)

6.1

3.1

9.2

5.7

3.1

8.8

5.7

3.1

8.8

5.7

3.1

8.8

23.2

12.4

35.6

Stock-based compensation expense (6)

2.1

4.4

6.5

2.6

6.8

9.4

3.3

3.6

6.9

4.4

3.4

7.8

12.4

18.2

30.6

Transaction-related expense (9)

3.5

0.0

3.5

7.2

0.0

7.2

3.9

0.0

3.9

1.3

0.0

1.3

15.9

0.0

15.9

Restructuring (10)

0.0

5.4

5.4

0.0

3.2

3.2

0.0

1.1

1.1

0.0

0.0

0.0

0.0

9.7

9.7

Elimination of prepackaged medications (12)

(1.0)

0.0

(1.0)

(0.1)

0.0

(0.1)

0.0

0.0

0.0

0.0

0.0

0.0

(1.1)

0.0

(1.1)

Total non-GAAP operating income (7)

$36.6

$14.3

$50.9

$41.6

$14.0

$55.6

$37.1

$12.8

$49.9

$39.5

$15.5

$55.0

$154.8

$56.6

$211.5

2009 Actual Results By Quarter

Three Months Ended

Three Months Ended

Three Months Ended

Three Months Ended

Twelve Months Ended

Allscripts Healthcare Solutions, Inc.

Non-GAAP Financial Information -

2009 Proforma Financial Information

(In millions)

(Unaudited)

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•

GAAP –

non-GAAP operating income reconciliation for the three and twelve months ended December 31,

2010.

Appendix: Non-GAAP Reconciliation

2/28/10

3/31/10

Q1 2010

5/31/10

6/30/10

Q2 2010

9/30/10

9/30/10

Q3 2010

12/31/10

Allscripts

Eclipsys

Non-GAAP

Allscripts

Eclipsys

Non-GAAP

Allscripts

Eclipsys

Non-GAAP

Q4 2010

Non-GAAP

Operating income, as reported

$31.9

$10.7

$42.6

$24.5

$5.4

$29.9

$5.5

($7.2)

($1.7)

$9.5

$80.3

Deferred revenue adjustment

0.5

0.0

0.5

0.6

0.0

0.6

0.5

6.7

7.2

20.9

29.2

Acquisition-related amortization

5.6

3.1

8.7

5.7

3.1

8.8

5.6

4.9

10.5

17.4

45.4

Stock-based compensation expense

4.3

3.7

8.0

2.8

3.7

6.5

6.6

0.0

6.6

3.7

24.8

Transaction-related expense

0.0

0.0

0.0

9.1

3.5

12.6

26.6

9.1

35.7

17.8

66.1

Restructuring

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

-

-

0.0

Eclipsys results pre-merger period (7/1/10-8/23/10)

0.0

0.0

0.0

0.0

0.0

0.0

0.0

4.7

4.7

-

4.7

Total non-GAAP operating income

$42.3

$17.5

$59.8

$42.7

$15.7

$58.4

$44.8

$18.2

$63.0

$69.3

$250.5

Three Months Ended

Three Months Ended

Three Months Ended

Three Months

Ended

2010 Full Year

Results

2010 Actual Results By Quarter

Allscripts Healthcare Solutions, Inc.

Non-GAAP Financial Information -

2010 Proforma Financial Information

(In millions)

(unaudited)

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32

•

GAAP –

non-GAAP EBITDA reconciliation for the 12 months ended December 31, 2010.

Appendix: Non-GAAP Reconciliation

Pro Forma Combined

12 months ended

12/31/2010

Net income

$25.9

Income tax expense

28.8

Stock-based compensation expense

35.7

Depreciation & amortization

99.9

Interest expense

11.1

Transaction related/restructuring expenses

67.1

Deferred revenue adjustment

29.1

Gain on Sale of Assets

-

Loss on sale of investments/ARS

6.6

EBITDA

$304.3

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Financial guidance was last provided by the company in a press release on February 15, 2011. This presentation does not subsequently update or reaffirm

Allscripts financial guidance.

Allscripts non-GAAP guidance for calendar 2011 assumes the following adjustments to approximately $1,418.0 million in GAAP revenue: approximately $21.0

million, pre-tax in deferred revenue adjustments.  Non-GAAP guidance for calendar 2011 assumes the following adjustments to GAAP operating and net

income: approximately $70.0 million of acquisition-related amortization; approximately $40.0 million in stock-based compensation expense; approximately

$21.0 million in deferred revenue adjustments; all on a pre-tax basis.  Allscripts 2011 non-GAAP net income and diluted earnings per share guidance assumes a

38.0%-39.5% tax rate.

Footnotes Regarding Financial Guidance

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Allscripts reports its financial results in accordance with generally accepted accounting principles, or GAAP. To supplement this

information, Allscripts presents in this press release total non-GAAP revenue, gross profit, operating income 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.

Total non-GAAP revenue consists of GAAP revenue as reported and Eclipsys revenue

for periods prior to the August 24, 2010 consummation of the 2010 Merger and adds back the acquisition related deferred revenue

adjustment booked for GAAP purposes.

Total non-GAAP gross profit consists of GAAP gross profit as reported and Eclipsys gross

profit for periods prior to the consummation of the 2010 Merger and adds back the acquisition related deferred revenue adjustment

booked for GAAP purposes.

Total non-GAAP operating income consists of GAAP operating income as reported and Eclipsys

operating income for periods prior to the consummation of the 2010 Merger and adds back the acquisition related deferred revenue

adjustment booked for GAAP purposes and excludes acquisition-related amortization, stock-based compensation expense and

transaction-related expenses. Non-GAAP net income consists of GAAP net income as reported and includes Eclipsys net income for

periods prior to the consummation of the 2010 Merger, excludes acquisition-related amortization, stock-based compensation expense

and transaction-related expenses, adds back the acquisition related deferred revenue adjustment, in each case net of any related tax

effects.

Management also believes that non-GAAP revenue, gross profit, operating income and net income and non-GAAP net income on a

per share basis provide useful supplemental information to management and investors regarding the underlying performance of the

company's business operations and facilitates comparisons of the

separate 2010 pre-merger results of legacy Allscripts and legacy

Eclipsys to that of the company's 2010 post-merger results.

Acquisition accounting adjustments made in accordance with GAAP can

make it difficult to make meaningful comparisons of the underlying operations of the business without considering the non-GAAP

adjustments that we have provided and discussed herein. Management also uses this information internally for forecasting and

budgeting as it believes that the measure is indicative of the company's core operating results. In addition, the company uses Non-

GAAP net income to measure achievement under the company's cash incentive compensation plans.

Note, however, that non-GAAP

revenue, gross profit and net income and non-GAAP net income on a per share basis are performance measures only, and they do not

provide any measure of the company's cash flow or liquidity. Non-GAAP financial measures are not in accordance with, or an

alternative for, measures of financial performance prepared in accordance with GAAP and may be different from non-GAAP

measures used by other companies. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with

Allscripts results of operations as determined in accordance with GAAP. Investors and potential investors are encouraged to review the

reconciliation of non-GAAP financial measures with GAAP financial measures contained within the attached condensed consolidated

financial statements.

Explanation of Non-GAAP Financial Measures