Allscripts, one of the industry’s notable EHR vendors, recently announced its third quarter financial results, and said that it is “evaluating strategic alternatives” in response to media speculation that the company had received bids from various private equity firms. The financial results were not desirable for Allscripts, with bookings down 17 percent from the second quarter, and down 39 percent year-over-year.
In a statement, Glen Tullman, Allscripts CEO, said, "We are confirming today that in light of the ongoing interest expressed in the Company by third parties, the Company is evaluating strategic alternatives.”
In addition to the drop in bookings, Allscripts faced a decrease in profit, revenue, and operating income. Tullman said the reason for the drop is market uncertainty, he implicated hospitals are waiting for Allscripts to figure out its situation and don’t want to yet commit to the 10-year contract. He said once things clear up, the company will be able to improve.
In the day following the announcement, company’s stock dropped 3.22 percent, or 40 cents, from $12.26 per share to $11.86.
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