Eclipsys Announces Third-Quarter 2009 Results

http://www.businesswire.com/news/home/20091105006436/en

ATLANTA--(Business Wire)--
Eclipsys Corporation (NASDAQ: ECLP), The Outcomes Company, today announced
results for the quarter ended September 30, 2009.

Revenues for the quarter ended September 30, 2009 were $125.5 million, compared
to revenues of $132.4 million for the quarter ended September 30, 2008.

GAAP net income for the third quarter of 2009 was $3.9 million, or $0.07 per
diluted common share, compared to GAAP net income of $87.4 million, or $1.58 per
share on a diluted basis for the third quarter of 2008. GAAP net income in the
third quarter of 2008 included a one-time income tax benefit of $80.0 million
associated with the reversal of the company`s deferred tax valuation allowance.

Non-GAAP Results

Non-GAAP net income for the third quarter of 2009 was $8.2 million, or $0.14 per
diluted common share, compared to third quarter 2008 non-GAAP net income of
$16.3 million, or $0.30 per diluted share. A detailed reconciliation of GAAP to
non-GAAP results is included in the attached tables.

"Our third-quarter performance was in-line with our expectations," said Philip
M. Pead, Eclipsys president and chief executive officer. "I was very pleased
with our bookings in the third quarter, particularly the amount of new
enterprise business we signed."

The non-GAAP earnings per share guidance range remains $0.55 to $0.60 for 2009,
and the company will provide 2010 financial guidance in its fourth quarter
earnings release.

Balance Sheet Update

In the quarter, Eclipsys repaid $45 million of debt on its credit facility.
These payments were funded through available cash, operating cash flows and
$23.6 million in proceeds from the sale of auction rate securities. Eclipsys
ended the quarter with $122.1 million of cash and $86.0 million in long-term
investments.

Through the third quarter of 2009, Eclipsys has generated $29.9 million in free
cash flows, compared to $8.7 million through the third quarter of 2008. The
company defines free cash flow as operating cash flows less capitalized software
development costs and capital expenditures.

Conference Call

Eclipsys executives will discuss the third-quarter results on a teleconference
at 4:30 p.m. Eastern time on November 5. Persons interested in participating in
the teleconference should call (800) 288-8968 approximately 15 minutes before
the conference call is slated to begin. For listen-only mode, participants can
go to www.eclipsys.com prior to the conference call to register and download the
necessary audio software.

Replay

About two hours after its completion, an audio replay of the call will be
available on www.eclipsys.com for approximately 48 hours.

About Eclipsys

Eclipsys is a leading provider of advanced integrated clinical, revenue cycle
and performance management software, clinical content and professional services
that help healthcare organizations improve clinical, financial and operational
outcomes. For more information, see www.eclipsys.com or email info@eclipsys.com.

Non-GAAP Measures

The company has provided net income and earnings per share financial measures on
a non-GAAP basis for the three months ended September 30, 2009 and September 30,
2008, which exclude non-cash stock-based compensation expenses, amortization
expense associated with acquisitions, and certain additional items that the
company does not consider to be indicative of its underlying business
performance, as listed on the attached GAAP to non-GAAP reconciliation tables.
Because of the significance of the GAAP components excluded, these non-GAAP
financial measures should not be considered a substitute for, or superior to,
any measure derived in accordance with GAAP. These non-GAAP financial measures
may also be inconsistent with the manner in which similar measures are derived
or used by other companies. Management believes that the non-GAAP financial
measures provided, when considered in conjunction with comparable GAAP financial
measures, facilitate the understanding and evaluation of the company`s operating
performance and future prospects, as well as comparisons of the company`s
results with its prior period results that did not include these gains and/or
charges, and with results of other companies on a more consistent basis.
Internally, management uses non-GAAP net income and earnings for forecasting and
to help make management decisions, as an indicator of business performance, and
to evaluate management`s effectiveness and help determine bonuses for management
and others.

The economic substance of omitting non-cash stock-based compensation expense in
presenting non-GAAP earnings derives from providing investors with consistent
measures of performance both before and after including non-cash stock-based
compensation charges. The economic substance of omitting the other items
incurred that the company does not consider to be indicative of its underlying
business performance derives from the fact that such episodic gains and/or
charges make it more difficult to compare operating results of different
periods, not all of which include such gains and/or charges. However, the
omission of non-cash stock-based compensation expense may mask an economic cost
incurred by the company in connection with stock-based compensation, and the
omission of the charges related to the company`s other non-GAAP adjustments may
mask actual and expected future costs associated with such matters. Management
compensates for these limitations by using both the GAAP and non-GAAP measures.

The company has provided reconciling tables attached to this release.

Caution Regarding Forward-Looking Statements

Certain statements in this news release or the investor call referenced herein,
including those concerning the company`s operational initiatives, future
performance expectations, and effects of economic conditions are forward-looking
statements and actual results may differ materially from those projected or
implied by the forward-looking statements due to a variety of risks and
uncertainties. Future performance expectations are predicated upon achievement
of various sales and performance targets that may be difficult to meet. Economic
conditions are unstable and may cause hospitals and other healthcare providers
to curtail HIT system spending. Eclipsys` cost reduction and other initiatives
in response to the challenging economic environment, including initiatives
designed to improve operational efficiencies, may not be effective, and it is
difficult to predict what the company may be able to achieve. Eclipsys sales may
fall below expectations due to market conditions, competition, and other
factors, including client demands for pricing and financing concessions. Costs
may be greater than anticipated due to the potential need to increase spending
to ensure performance in accordance with commitments to clients, regulatory
requirements, and other factors. Software development may take longer and cost
more than expected, and incorporation of anticipated features and functionality
(including as required to comply with ARRA and related regulations, as well as
other certification standards) may be delayed, due to various factors including
programming and integration challenges and resource constraints. The market is
highly competitive. Implementation and customization of Eclipsys software is
complex and time-consuming. Results depend upon a variety of factors and can
vary by client. Each client`s circumstances are unique and may include
unforeseen issues that make it more difficult than anticipated to implement or
derive benefit from software, implementation or consulting services. The success
and timeliness of the company`s services will depend at least in part upon
client involvement, which can be difficult to control. Eclipsys is required to
meet specified performance standards and regulatory requirements, and clients
can terminate contracts, assess penalties or reduce contract scope under certain
circumstances. More information about company risks is available in recent Form
10-K and other filings made by Eclipsys from time to time with the Securities
and Exchange Commission. Special attention is directed to the portions of those
documents entitled "Risk Factors" and "Management`s Discussion and Analysis of
Financial Condition and Results of Operations."

Eclipsys Corporation
GAAP Income Statements (Unaudited)
(in thousands, except per share amounts)

Three Months Ended Three Months Ended $ Change % Change Year-to-date Year-to-date $ Change % Change
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008

Revenues:
Systems and services $ 123,471 $ 127,575 $ (4,104 ) -3.2 % $ 379,283 $ 373,021 $ 6,262 1.7 %
Hardware 2,015 4,849 (2,834 ) -58.4 % 6,217 15,925 (9,708 ) -61.0 %
Total revenues 125,486 132,424 (6,938 ) -5.2 % 385,500 388,946 (3,446 ) -0.9 %

Cost and expenses:
Costs of systems and services 66,455 73,166 (6,711 ) -9.2 % 201,644 210,042 (8,398 ) -4.0 %
Costs of hardware 1,672 5,457 (3,785 ) -69.4 % 5,278 13,408 (8,130 ) -60.6 %
Sales and marketing 20,876 19,498 1,378 7.1 % 71,020 63,150 7,870 12.5 %
Research and development 13,204 14,195 (991 ) -7.0 % 40,568 47,102 (6,534 ) -13.9 %
General and administrative 10,772 8,202 2,570 31.3 % 35,223 26,877 8,346 31.1 %
Depreciation and amortization 7,980 5,145 2,835 55.1 % 24,132 15,651 8,481 54.2 %
Restructuring - - - 5,434 - 5,434 * N/M
In-process research and development charge - - - 850 (850 ) -100.0 %
Total costs and expenses 120,959 125,663 (4,704 ) -3.7 % 383,299 377,080 6,219 1.6 %

Income (loss) from operations 4,527 6,761 (2,234 ) -33.0 % 2,201 11,866 (9,665 ) -81.5 %
Gain (loss) on sale of assets 809 685 124 18.1 % 2,046 4,200 (2,154 ) -51.3 %
Gain (loss) on ARS (871 ) - (871 ) * N/M (338 ) - (338 ) * N/M
Interest expense (716 ) (499 ) (217 ) 43.5 % (2,821 ) (1,219 ) (1,602 ) 131.4 %
Interest income 316 1,133 (817 ) -72.1 % 1,844 4,800 (2,956 ) -61.6 %
Income (loss) before income taxes 4,065 8,080 (4,015 ) -49.7 % 2,932 19,647 (16,715 ) -85.1 %
Provision for income taxes 185 (79,316 ) 79,501 * N/M 4,019 (76,549 ) 80,568 * N/M
Net income (loss) $ 3,880 $ 87,396 $ (83,516 ) -95.6 % $ (1,087 ) $ 96,196 $ (97,283 ) -101.1 %

Basic EPS:
Net income (loss) $ 3,880 $ 87,396 $ (83,516 ) -95.6 % $ (1,087 ) $ 96,196 $ (97,283 ) -101.1 %
Less: Income allocated to participating securities 34 971 (937 ) -96.5 % - 1,133 (1,133 ) -100.0 %
Net income (loss) available to common shareholders $ 3,846 $ 86,425 $ (82,579 ) -95.5 % $ (1,087 ) $ 95,063 $ (96,150 ) -101.1 %
Basic weighted average common shares outstanding 56,036 53,861 2,175 4.0 % 55,739 53,684 2,055 3.8 %
Basic net income (loss) per common share $ 0.07 $ 1.60 $ (1.53 ) -95.6 % $ (0.02 ) $ 1.77 $ (1.79 ) -101.1 %

Diluted EPS:
Net income (loss) 3,880 87,396 (83,516 ) -95.6 % (1,087 ) 96,196 (97,283 ) -101.1 %
Less: Income allocated to participating securities 34 956 (922 ) -96.5 % - 1,115 (1,115 ) -100.0 %
Net income (loss) available to common shareholders $ 3,846 $ 86,440 $ (82,594 ) -95.6 % $ (1,087 ) $ 95,081 $ (96,168 ) -101.1 %
Basic weighted average common shares outstanding 56,036 53,861 2,175 4.0 % 55,739 53,684 2,055 3.8 %
Dilutive effect of potential common shares 946 855 91 10.6 % - 875 (875 ) -100.0 %
Diluted weighted average shares common outstanding 56,982 54,716 2,266 4.1 % 55,739 54,559 1,180 2.2 %
Diluted earnings (loss) per common share $ 0.07 $ 1.58 $ (1.51 ) -95.7 % $ (0.02 ) $ 1.74 $ (1.76 ) -101.1 %

* N/M - not meaningful

ECLIPSYS CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except share and per share amounts)

September 30, December 31,
2009 2008

(Unaudited)
Assets
Current assets:
Cash $ 122,106 $ 108,304
Marketable securities - 154
Accounts receivable, net of allowance for doubtful accounts of $3,244 106,010 121,811
and $4,912, respectively
Prepaid expenses 25,490 23,975
Deferred tax asset 259 2,643
Other current assets 4,629 5,712
Total current assets 258,494 262,599

Long-term investments 85,964 107,215
Property and equipment, net 57,919 53,996
Capitalized software development costs, net 48,923 37,718
Acquired technology, net 32,060 39,710
Intangible assets, net 8,122 10,258
Goodwill 98,394 96,973
Deferred tax asset 88,272 89,063
Other assets 14,059 11,343
Total assets $ 692,207 $ 708,875

Liabilities and Stockholders` Equity
Current liabilities:
Deferred revenue $ 120,049 $ 123,733
Accounts payable 11,191 20,924
Accrued compensation costs 33,302 16,457
Deferred tax liability 3,318 -
Other current liabilities 18,846 22,481
Total current liabilities 186,706 183,595

Deferred revenue 6,012 5,743
Long term debt and capital lease obligations 60,842 105,000
Other long-term liabilities 15,783 16,540
Total liabilities 269,343 310,878

Stockholders` equity:
Common stock, $0.01 par value, 200,000,000 shares authorized; 567 561
issued and outstanding, 56,706,804 and 56,126,674, respectively
Additional paid-in capital 591,345 569,717
Accumulated deficit (165,799 ) (164,712 )
Accumulated other comprehensive income (3,249 ) (7,569 )
Total stockholders` equity 422,864 397,997
Total liabilities and stockholders` equity $ 692,207 $ 708,875

ECLIPSYS CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(in thousands)

For the Nine Months Ended For the Three Months Ended
September 30, September 30,
2009 2008 2009 2008

Operating activities:
Net income $ (1,087 ) $ 96,196 $ 3,880 $ 87,396
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 37,014 29,818 12,181 9,267
Provision for bad debt 2,446 2,655 450 1,255
In-process research and development charge - 850 - -
Deferred income taxes 3,777 (78,184 ) 103 (78,551 )
Gain on sale of marketable securities (30 )
Stock compensation expense 14,768 13,093 3,599 5,627
Gain on sale of assets (2,046 ) (4,168 ) (809 ) (683 )
Foreign Currency (gain) /loss 924 (317 ) 413 (125 )
Interest Income Received, net - 588 - 64
Changes in operating assets and liabilities, excluding the
effect of acquisitions and dispositions:
Accounts receivable 7,066 (21,611 ) 5,118 (2,803 )
Prepaid expenses and other current assets 1,420 755 (160 ) 4,823
Inventory - - - 18
Other assets 59 (289 ) 556 (1,336 )
Deferred revenue (1,217 ) (3,378 ) 2,414 5,127
Accrued compensation 16,964 (5,029 ) 8,331 1,678
Accounts payable and other current liabilities (12,375 ) 5,936 (5,487 ) 2,038
Long-term liabilities 1,739 3,971 174 1,033
Other reconciling items 745 692 1,681 162
Total adjustments 71,284 (54,648 ) 28,564 (52,406 )
Net cash provided by operating activities 70,197 41,548 32,444 34,990
Investing activities:
Purchases of property and equipment (17,556 ) (20,432 ) (5,002 ) (7,117 )
Purchase of marketable securities (102,000 )
Proceeds from sales of marketable securities 24,061 151,100 23,911
Proceeds from sale of assets 698
Proceeds from sale of debt and equity securities 2,541
Capitalized software development costs (22,728 ) (12,417 ) (8,076 ) (5,476 )
Restricted Cash 1,963 1,963
Earnout out on disposition 2,079 3,578 838 996
Cash paid for acquisitions, net of cash acquired (2,984 ) (54,593 ) (165 ) (223 )
Net cash used in investing activities (17,128 ) (29,562 ) 11,506 (9,857 )
Financing activities:
Proceeds from stock options exercised 5,587 5,283 2,281 2,844
Proceeds from employee stock purchase plan 666 615 212 240
Cash paid for debt issuance costs (1,430 ) (1,009 )
Repayment of secured financing (45,000 ) (95,000 ) (45,000 ) (50,000 )
Proceeds from secured financing 146,000 51,000
Other (80 ) (21 )
Net cash provided by financing activities (38,827 ) 55,468 (42,528 ) 3,075

Effect of exchange rates on cash and cash equivalents (440 ) (588 ) (241 ) (352 )
Net increase (decrease) in cash and cash equivalents 13,802 66,866 1,181 27,856
Cash and cash equivalents - beginning of period 108,304 22,510 120,925 61,520
Cash and cash equivalents - end of period $ 122,106 $ 89,376 $ 122,106 $ 89,376

Eclipsys Corporation
Reconciliation of GAAP (Unaudited) to Non-GAAP Items
(in thousands, except per share amounts)

Three Months Ended Three Months Ended Year-to-date Year-to-date
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008

Revenues:
GAAP Revenues $ 125,486 $ 132,424 $ 385,500 $ 388,946
Premise acquisition accounting (1) 594 5,945
Non-GAAP revenues $ 126,080 $ 132,424 $ 391,445 $ 388,946

GAAP Recurring revenues $ 89,425 $ 84,757 $ 267,435 $ 248,963
Premise acquisition accounting (1) 154 882
Non-GAAP Recurring revenues $ 89,579 $ 84,757 $ 268,317 $ 248,963

GAAP Professional services revenues $ 25,468 $ 34,028 $ 84,616 $ 96,042
Premise acquisition accounting (1) 160 1,082
Non-GAAP Professional services revenues $ 25,628 $ 34,028 $ 85,698 $ 96,042

GAAP Periodic revenues $ 8,577 $ 8,809 $ 27,230 $ 28,116
Premise acquisition accounting (1) 261 3,847
Non-GAAP Periodic revenues $ 8,838 $ 8,809 $ 31,077 $ 28,116

GAAP Hardware revenues $ 2,015 $ 4,849 $ 6,217 $ 15,925
Premise acquisition accounting (1) 19 134
Non-GAAP Hardware revenues $ 2,034 $ 4,849 $ 6,351 $ 15,925

Gross Margin
Revenues $ 125,486 $ 132,424 $ 385,500 $ 388,946
Costs of systems and services (66,455 ) (73,166 ) (201,644 ) (210,042 )
Cost of hardware (1,672 ) (5,457 ) (5,278 ) (13,408 )
GAAP Gross margin (A) 57,359 53,801 178,578 165,496
Adjustments
Premise acquisition accounting (1) 486 5,038
Stock-based compensation expense (2) 501 2,433 1,500 5,818
Headquarter relocation (3) 419
Restructuring (4) 585 585
Professional Services Reorganization (5) 1,080 1,080
Non-recurring items (6) 782 782
Non-GAAP gross margin $ 58,931 $ 58,096 $ 185,701 $ 173,595

Operating Expenses
GAAP operating expenses (B) $ 52,832 $ 47,040 $ 176,377 $ 153,630
Adjustments
Stock-based compensation expense (2) (3,098 ) (3,191 ) (13,266 ) (7,273 )
Headquarter relocation (3) (2,521 )
Restructuring (4) (556 ) (9,182 )
Professional Services Reorganization (5) (298 ) (298 )
Derivative litigation (7) (1,353 )
Amortization (8) (3,124 ) (1,121 ) (9,372 ) (2,666 )
EPSI research and development charge (9) (850 )
Valuation allowance reversal (10) (177 ) (177 )
Non-GAAP operating expenses $ 46,054 $ 42,253 $ 144,557 $ 138,492

Eclipsys Corporation
Reconciliation of GAAP (Unaudited) to Non-GAAP Items
(in thousands, except per share amounts)

Three Months Ended Three Months Ended Year-to-date Year-to-date
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008

Gross Research and Development Expenses
GAAP research and development $ 13,204 $ 14,195 $ 40,568 $ 47,102
Adjustments
Stock-based compensation expense (2) (565 ) (401 ) (1,564 ) (991 )
Headquarter relocation (3) (159 )
Restructuring (4) (40 ) (40 )
Non-GAAP research and development 12,599 13,794 38,964 45,952
Capitalized software and development costs 8,076 5,281 22,728 12,417
Non-GAAP gross research and development expenses $ 20,675 $ 19,075 $ 61,692 $ 58,369

Operating Income
GAAP operating income $ 4,527 $ 6,761 $ 2,201 $ 11,866
Adjustments
Premise acquisition accounting (1) 486 5,038
Stock-based compensation expense (2) 3,599 5,624 14,766 13,091
Headquarter relocation (3) 2,940
Restructuring (4) 1,141 9,767
Professional Services Reorganization (5) 1,378 1,378
Non-recurring items (6) 782 782
Derivative litigation (7) 1,353
Amortization (8) 3,124 1,121 9,372 2,666
EPSI research and development charge (9) 850
Valuation allowance reversal (10) 177 177
Non-GAAP operating income $ 12,877 $ 15,843 $ 41,144 $ 35,103

Pre-tax income
GAAP pre-tax income $ 4,065 $ 8,080 $ 2,932 $ 19,647
Adjustments
Premise acquisition accounting (1) 486 5,038
Stock-based compensation expense (2) 3,599 5,624 14,766 13,091
Headquarter relocation (3) 2,940
Restructuring (4) 1,141 9,767
Professional Services Reorganization (5) 1,378 1,378
Non-recurring items (6) 782 782
Derivative litigation (7) 1,353
Amortization (8) 3,124 1,121 9,372 2,666
EPSI research and development charge (9) 850
Valuation allowance reversal (10) 177 177
Gain on sale of assets (11) (3,482 )
ARS Sale (12) 1,114 1,114
Non-GAAP pre-tax income $ 13,529 $ 17,162 $ 42,989 $ 39,402

Eclipsys Corporation
Reconciliation of GAAP (Unaudited) to Non-GAAP Items
(in thousands, except per share amounts)

Three Months Ended Three Months Ended Year-to-date Year-to-date
September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008

Net Income
GAAP net income $ 3,880 $ 87,396 $ (1,087 ) $ 96,196
Adjustments
Premise acquisition accounting (1) 288 3,129
Stock-based compensation expense (2) 2,488 5,624 10,153 13,091
Headquarter relocation (3) 2,940
Restructuring (4) 684 6,066
Professional Services Reorganization (5) 1,378 1,378
Non-recurring items (6) 782 782
Derivative litigation (7) 1,353
Amortization (8) 1,923 1,121 5,821 2,666
EPSI research and development charge (9) 850
Valuation allowance reversal (10) (79,954 ) (79,954 )
Gain on sale of assets (11) (3,227 )
ARS Sale (12) 692 692
State tax provision (13) 1,540
Taxes (14) (1,727 ) 1,925
Non-GAAP net income $ 8,228 $ 16,347 $ 26,699 $ 37,615

Diluted earnings per share
Diluted earnings per share $ 0.07 $ 1.58 $ (0.02 ) $ 1.74
Adjustments
Premise acquisition accounting (1) 0.01 0.05
Stock-based compensation expense (2) 0.04 0.10 0.18 0.24
Headquarter relocation (3) 0.05
Restructuring (4) 0.01 0.11
Professional Services Reorganization (5) 0.02 0.02
Non-recurring items (6) 0.01 0.01
Derivative litigation (7) 0.02
Amortization (8) 0.03 0.02 0.10 0.04
EPSI research and development charge (9) 0.02
Valuation allowance reversal (10) (1.45 ) (1.45 )
Gain on sale of assets (11) (0.06 )
ARS Sale (12) 0.01 0.01
State tax provision (13) 0.03
Taxes (14) (0.03 ) 0.03
Non-GAAP diluted earnings per share $ 0.14 $ 0.30 $ 0.47 $ 0.68

Eclipsys Corporation
Reconciliation NOTES of GAAP (Unaudited) to Non-GAAP Items

1 Deferred revenue adjustments net of deferred costs adjustments related to the Company's December 2008 acquisition of Premise Corporation. The amounts represent the reduction of deferred revenue and related deferred costs acquired from Premise as a result of purchase accounting adjustments.

2 Represents stock based compensation expense.

3 Amounts incurred to relocate the corporate headquarters from Boca Raton to Atlanta, including salaries and benefits associated with the termination of employees not relocating and other administrative costs associated with the move.

4 Severance related activity primarily in the Company's professional services organization. Also includes severance costs in the second quarter of 2009 associated with the departure of the Company's CEO.

5 Severance costs associated with the reorganization of the Company's professional services organization in the third quarter of 2008.

6 Nonrecurring adjustments from prior years.

7 Charges incurred as a result of the voluntary stock option review completed in the second quarter 2007 and are related primarily to legal fees associated with the subsequent derivative litigation. These costs are net of insurance recoveries in the second quarter 2008.

8 Amortization of intangible assets associated with 2008 acquisitions.

9 Write off of in-process research and development associated with our acquisition of EPSI.

10 Income tax benefit associated with the reversal of the Company's deferred tax valuation allowance.

11 Gain resulted from the achievement of certain post-closing milestones associated with the December 2007 sale of the Clinical Practice Model Resource Center (CPMRC) business.

12 Realized loss on the sale of one of the Company's auction rate securities for $23.6 million.

13 Accounting rule issued related to Uncertainty in Income Taxes clarified the criteria for recognizing income tax benefits. This charge was recorded as a result of the review of uncertain state tax positions.

14 Represents a combination of discrete tax items, primarily deferred tax asset adjustments for Canadian research and development credits in the second quarter and non-GAAP tax adjustments to reflect the non-GAAP annual effective tax rate.

Notes

A GAAP gross margin equals revenue less costs of systems and services and costs of hardware.

B GAAP operating expenses include sales and marketing expense, research and development expense , general and administrative expense, depreciation and amortization expense, restructuring charge, and in process research and development charge.

Eclipsys
Jason Cigarran, 404-847-5965
Vice President, Investor Relations
jason.cigarran@eclipsys.com

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