Eclipsys posts good fourth quarter earnings, builds new EHR
Eclipsys, the Atlanta-based health software and services company, has beaten expectations for the fourth quarter of 2009, posting adjusted earnings of 17 cents per share when analysts, on average, had predicted that number to be 12 cents.
Eclipsys reported increased fourth quarter earnings of $3.8 million, up 15 percent from the same time last year. The company's revenue also reported gains, its $133.7 million posting up 5 percent from last year's fourth quarter.
The news comes the same week that Eclipsys has announced plans to build an integrated electronic health record (EHR) for Sound Shore Health System, which has facilities in New Rochelle and Mount Vernon, N.Y.
Sound Shore Health System (SSHS) will take advantage of Eclipsys's integrated clinical, access management and revenue cycle applications, utilizing its "speed to value" implementation approach to accelerate EHR activation and meet the specified ARRA timeline requirements. Those applications include Eclipsys's computerized physician order entry (CPOE), integrated pharmacy information and orders reconciliation and e-prescribing systems.
"In looking for a long-term technology and clinical solutions partner, Eclipsys offered the most advanced technology vision that provides for true interoperability between the Eclipsys solutions and disparate systems across environments," says John R. Spicer, president and chief executive officer of Sound Shore Health System. "The company also has a solid track record of supporting deep technology adoption both with large academic clients and community hospitals. Because of those two factors, we believe Eclipsys is the right choice to help us achieve our efficiency and clinical effectiveness goals, while providing SSHS a technology platform to meet our current and future needs, such as easier ability to leverage unanticipated innovations in healthcare technology."
Although recent earnings numbers for Eclipsys (ECLP) have bested expectations, their future potential is in some question. Analysts project a 17.38 percent projected earnings-per-share growth rate for the coming five years, compared with a rate of 18.42 percent for the healthcare information services industry in general.
Recent reports have seen analysts favoring other industry stocks, such as Quality Systems Inc. (QSII) and Cerner Corp. (CERN), which are expected to grow at 18.11 percent and 17.93 percent, respectively.