Nov 8 Allscripts Healthcare Solutions Inc
said it is evaluating its future, confirming a report
that the healthcare technology firm may sell itself, sending its
shares up 7 percent.
The company, which reported a lower third-quarter profit on
Thursday, had spoken to several private equity firms including
Blackstone Group LP about a leveraged buyout, Bloomberg
reported in September.
"We are confirming today that in light of the ongoing
interest expressed in the company by third parties, the company
is evaluating strategic alternatives," Allscripts Chief
Executive Glen Tullman said in a statement.
Citigroup Inc is advising in the process, the company
Allscripts faced shareholder activism earlier this year,
when one of its largest investors, HealthCor Management,
demanded the resignation of Allscripts chief executive. The
company agreed to nominate three of the investor's candidates to
its board in early June.
The company said it is withdrawing its forecast for 2012 as
it evaluates strategic alternatives. It had forecast adjusted
earnings of between 77 cents and 83 cents per share in August.
Shares of the Chicago-based company were up 6.7 percent in
extended trade. They closed at $12.26 on the Nasdaq.
Allscripts' software bookings fell 39 percent to $161.9
million from a year earlier as clients delayed purchases.
"First, clients delayed decisions in the quarter due to
speculation about Allscripts' future corporate autonomy. And,
second, clients who continued to delay purchase decisions as
they wait for new product releases," CEO Tullman said on a
conference call with analysts.
Sterne, Agee & Leach analyst Greg Bolan said the company's
existing products are undergoing a sizeable upgrade.
Allscripts's net income fell to $9.4 million, or 5 cents per
share, in the third quarter, from $19.1 million, or 10 cents per
share, a year earlier.
Excluding items, earnings were 23 cents per share.
Total revenue fell nearly 1 percent to $360.7 million.
Analysts had expected a profit of 22 cents per share on
revenue of $377.01 million, according to Thomson Reuters