Allscripts Continues to Struggle Financially, Stock Tumbles
Allscripts, the Chicago-based electronic health record (EHR) developer, reported a $25.8 million loss in the third quarter of 2014. Coupled with a decrease in future bookings, the company’s stock dropped approximately up to 17 percent or more than two dollars per share.
The loss of $25.8 million isn’t as bad as where Allscripts was one year ago, when it lost nearly $50 million. However, the revenues of $347.7 million were below where Wall St. estimates predicted it would be. Further, future bookings were $223 million, compared to $236 million in the third quarter of 2013 and $234 million in the second quarter of 2014.
However, it wasn’t all bad, according to Allscripts CEO Paul Black, who pointed to progress and a growing demand as reasons for optimism. The company highlighted a number of contracts it won during the quarter including systems at Catholic Health Initiatives, Robert Wood Johnson University Hospital, and Baylor Scott & White Health.
The company has had its fair share of struggles in the past few years. In late 2012, longtime CEO Glen Tullman resigned after a tough year for the company. He was replaced by Black immediately.
