Athenahealth profit soars as more physicians use its software

Thu Feb 6, 2014 5:57pm EST

(Reuters) - Healthcare software company Athenahealth Inc (ATHN.O) reported a better-than-expected adjusted quarterly profit as its network of physicians expanded by 28 percent, sending its shares up about 14 percent in extended trading.

The company also said Epocrates, the mobile application business it bought in March, contributed $18.9 million to its revenue.

The earnings-per-share growth was "positively impacted by very strong gross margin performance as well as better-than-expected Epocrates contribution," ISI Group analyst Michael Cherny said in a note.

Athenahealth, one of the largest makers of software to manage healthcare records and billing, said revenue jumped 48 percent to $171.6 million.

Net income rose to $13.1 million, or 34 cents per share, in the fourth quarter from $5.9 million, or 16 cents per share, a year earlier.

Excluding items, Athenahealth earned 57 cents per share.

Analysts on average had expected earnings of 44 cents on revenue of $168.4 million, according to Thomson Reuters I/B/E/S.

Shares of Athenahealth closed at $139.08 on the Nasdaq.

(Reporting by Shailesh Kuber; Editing by Don Sebastian)

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