Allscripts To Accelerate Vesting of Certain Stock Options; Acceleration to Reduce Future Stock-Based Compensation Expense.CHICAGO -- Allscripts Allscripts Therapeutics A handheld electronic prescribing product (Nasdaq:MDRX) today announced that its Board of Directors has approved a plan to accelerate vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: of certain options awarded under the Company's stock option plans. Under the plan, options that were originally due to vest between January 1, 2006 and August 1, 2007, would become fully vested vested adj. referring to having an absolute right or title, when previously the holder of the right or title only had an expectation. Examples: after 20 years of employment Larry Loyal's pension rights are now vested. (See: vest, vested remainder) on December 31, 2005. As a result, the Company will recognize additional non-cash, non-recurring stock-based compensation expense amounting to approximately $0.6 million, which will be reflected in the Company's fourth quarter 2005 net income. The Company estimates that it will avoid having to recognize future compensation expense of approximately $5.6 million under the new accounting rules SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123(R), which becomes effective January 1, 2006. "Upon adoption, SFAS 123(R) requires that compensation expense associated with stock options be recognized in the income statement rather than as a footnote Text that appears at the bottom of a page that adds explanation. It is often used to give credit to the source of information. When accumulated and printed at the end of a document, they are called "endnotes." disclosure," stated Bill Davis For the artist, animator, creative director, see . For the baseball player, see .
As a result of the Board's action, unvested stock options to purchase approximately 1.3 million shares of the Company's common stock will become exercisable effective on December 31, 2005. The exercise prices of the affected stock options range from $2.77 to $10.67 per share. The acceleration of vesting will not change the exercise prices or terms of the options, nor will there be any tax implications for federal income tax purposes. About Allscripts Allscripts is the leading provider of clinical software, connectivity and information solutions that physicians use to improve healthcare. The Company provides unique solutions that inform, connect and transform healthcare. The Clinical Solutions Group's award-winning clinical software applications include Electronic Health Record, e-prescribing and document imaging solutions. Allscripts' Physicians Interactive Group provides clinical product education and connectivity solutions for physicians and patients. The Company's Medication Services Group provides medication fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. services. To learn more, visit Allscripts on the Web at www.allscripts.com. This announcement may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 2004 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , available through the Web site maintained by the Securities and Exchange Commission at www.sec.gov. |
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