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Allscripts Reports Fourth Quarter 2003 Results; Delivers Profitable Results and Positive Cash Flow from Operations.


Business Editors

CHICAGO--(BUSINESS WIRE)--Feb. 19, 2004

Allscripts Healthcare Solutions, Inc. (Nasdaq:MDRX), the leading provider of clinical software, connectivity and information solutions for physicians, today announced its results for the three and twelve months ended December 31, 2003.

Total revenue for the three months ended December 31, 2003, was $23.7 million, increasing by 19% over the three months ended December 31, 2002. For the three months ended December 31, 2003, revenue from software and information services was $11.8 million, increasing by 40% over the comparable period last year. Net income for the three months ended December 31, 2003, was $0.1 million, or $0.00 per share, compared with a net loss of $2.0 million, or a loss per share of $0.05 for the same period last year.

As of December 31, 2003, the Company had cash and marketable securities of $51.3 million and no debt.

"2003 was a pivotal year for Allscripts. We delivered on our promise of a profitable fourth quarter while producing positive cash flow from operations in every quarter during the year, demonstrating that when you satisfy your clients, the bottom line responds as well," commented Glen Tullman, Chief Executive Officer of Allscripts Healthcare Solutions. "There are a number of significant factors driving growth in the healthcare information technology market and Allscripts is uniquely positioned to capitalize on these trends in 2004."

For the twelve months ended December 31, 2003, total revenue was $85.8 million, up 9% from $78.8 million in 2002. Software and information services revenue for the twelve months ended December 31, 2003, increased by 35% from $29.5 million in 2002 to $39.7 million in 2003. Net loss for the twelve months ended December 31, 2003, was $5.0 million, or a loss per share of $0.13, compared with a net loss of $15.2 million, or a loss per share of $0.40, in 2002.

Allscripts Healthcare Solutions will conduct a conference call on Thursday, February 19, 2004, at 4:30 PM Eastern time to discuss the fourth quarter and 2003 results in further detail. The conference call can be accessed by dialing 1-800-374-0526, or via the Internet at www.allscripts.com. A recording of the conference call will be available for review through March 4, 2004, at www.allscripts.com or by calling 1-800-642-1687, ID #4978016.

About Allscripts Healthcare Solutions

Allscripts Healthcare Solutions (AHS AHS - Aberdeen High School (Washington)
AHS - Abington High School (Abington, PA)
AHS - Academy of Health Sciences
AHS - Academy of Health Sciences, United States Army
AHS - Active Handling System (automobiles)
AHS - Adaptive Hypermedia System
AHS - Adventist Health Systems
AHS - African Horse Sickness
AHS - Agawam High School (Agawam, MA, US)
AHS - Aiken High School (Aiken, South Carolina)
AHS - Ainsworth High School (Flint, Michigan)
) is the leading provider of clinical software, connectivity and information solutions for physicians. The Company's TouchWorks(TM) software is an Electronic Medical Record (EMR) that enhances physician productivity by automating the most common physician activities including prescribing, dictating, capturing charges, ordering labs and viewing results, providing patient education, and documenting clinical encounters. TouchWorks is available on the latest Tablet PCs, wireless handheld devices, desktop workstations and over the Internet. AHS also offers electronic document imaging and scanning solutions through its Advanced Imaging Concepts subsidiary. Additionally, AHS provides healthcare product education and market research programs for physicians through its Physicians Interactive(TM) unit and medication fulfillment services through its Allscripts Direct(TM) unit. Visit AHS on the Web at www.allscripts.com.

Strategic partners include IDX Systems (Nasdaq:IDXC); IMS Health (NYSE:RX); Microsoft; Hewlett-Packard; and Medco Health.

This announcement may contain forward-looking statements about Allscripts Healthcare Solutions that involve risks and uncertainties. These statements are developed by combining currently available information with Allscripts beliefs and assumptions. Forward-looking statements do not guarantee future performance. Because Allscripts cannot predict all of the risks and uncertainties that may affect it, or control the ones it does predict, Allscripts' actual results may be materially different from the results expressed in its forward-looking statements. For a more complete discussion of the risks, uncertainties and assumptions that may affect Allscripts see the Company's 2002 Annual Report on Form 10-K, available through the Web site maintained by the Securities and Exchange Commission at www.sec.gov.


                 Allscripts Healthcare Solutions, Inc.
                 Condensed Consolidated Balance Sheets
                        (amounts in thousands)
                              (Unaudited)

                                             December 31, December 31,
Assets                                           2003         2002
------                                       ------------ ------------

 Current assets
   Cash and cash equivalents                     $13,336      $17,247
   Marketable securities                           3,435       19,117
   Accounts receivable, net                       18,219       18,659
   Other receivables                                 237          747
   Inventories                                     3,249        3,988
   Prepaid expenses and other current assets       3,863        3,037
                                             ------------ ------------
       Total current assets                       42,339       62,795

 Long-term marketable securities                  34,538       28,922
 Fixed assets, net                                 2,237        4,384
 Intangible assets, net                           26,359        4,793
 Other assets                                      4,919        3,459
                                             ------------ ------------
       Total assets                             $110,392     $104,353
                                             ============ ============


Liabilities and Stockholders' Equity
------------------------------------

 Current liabilities
   Accounts payable and accrued liabilities      $13,884      $10,682
   Accrued restructuring and other charges           104        1,140
   Deferred revenue                               10,959        6,547
                                             ------------ ------------
       Total current liabilities                  24,947       18,369

 Other liabilities                                 2,055          163
                                             ------------ ------------
       Total  liabilities                         27,002       18,532

 Stockholders' equity                             83,390       85,821
                                             ------------ ------------

       Total liabilities and stockholders'
        equity                                  $110,392     $104,353
                                             ============ ============



                 Allscripts Healthcare Solutions, Inc.
            Condensed Consolidated Statements of Operations
           (amounts in thousands, except per-share amounts)
                              (Unaudited)


                                    Three Months      Twelve Months
                                       Ended              Ended
                                    December 31,       December 31,
                                   2003      2002     2003      2002
                                 --------- -------- -------- ---------

Revenue:
      Prepackaged medications     $11,894  $11,540  $46,172   $49,298
      Software and related
       services                     8,318    5,645   28,366    19,921
      Information services          3,441    2,744   11,303     9,583
                                  -------- -------- -------- ---------
   Total revenue                   23,653   19,929   85,841    78,802

Cost of revenue                    14,341   14,086   55,169    58,931
                                  -------- -------- -------- ---------
Gross profit                        9,312    5,843   30,672    19,871

Operating expenses:
      Selling, general and
       administrative expenses      9,084    8,096   36,058    36,412
      Amortization of intangibles     388      133      951       540
      Restructuring and other
       charges                          0        0        0       600
                                  -------- -------- -------- ---------
   Loss from operations              (160)  (2,386)  (6,337)  (17,681)

Interest and other income, net        276      338    1,358     2,448
                                  -------- -------- -------- ---------
Income/(loss) before income taxes     116   (2,048)  (4,979)  (15,233)

Income taxes                            -        -        -         -
                                  -------- -------- -------- ---------
Net income/(loss)                    $116  ($2,048) ($4,979) ($15,233)
                                  ======== ======== ======== =========

Net income/(loss) per share -
 basic and diluted                  $0.00   ($0.05)  ($0.13)   ($0.40)
                                  ======== ======== ======== =========

Weighted average shares of common
 stock outstanding used in
 computing basic net income/(loss)
 per share                         38,956   38,426   38,621    38,337
                                  ======== ======== ======== =========

Weighted average shares of common
 stock outstanding used in
 computing diluted net
 income/(loss) per share           40,700   38,426   38,621    38,337
                                  ======== ======== ======== =========

COPYRIGHT 2004 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Geographic Code:1USA
Date:Feb 19, 2004
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