Allscripts Shares Plummet on News of Chairman's Ouster

Thursday, 26 Apr 2012 06:23 PM

 

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Shares of Allscripts Healthcare Solutions Inc., an electronic-health records provider, fell by almost half on Thursday after the company said it fired its chairman and three directors resigned.

Allscripts declined 47 percent to $8.54 at 5:10 p.m. New York time in extended trading after closing at $16.02 before the announcement.

The company lowered its 2012 earnings forecast to 74 cents to 80 cents a share excluding certain items from $1.06 to $1.10 a share announced in February. Revenue was $364.7 million, missing the $387.6 million average of 18 analysts’s estimates compiled by Bloomberg.

“A number of our clients and prospects delayed commitments as they wait for us to introduce new releases and demonstrate more robust integration,” said Glen Tullman, Allscripts’ chief executive officer. “This dynamic, combined with the recent reorganization of our sales and service teams, were the primary factors that caused sales to be lower than our expectations.”

The chairman, Phil Pead, was dismissed Wednesday after the board “engaged in extensive deliberations regarding the leadership of the company,” the Chicago-based company said Thursday in its statement. Three directors who didn’t agree with the decision resigned.

The company’s chief financial officer, Bill Davis, also resigned, the company said in the statement.

First-quarter net income declined to $5.8 million, or 3 cents a share, from $12.6 million, or 7 cents, a year earlier, the company said in the statement.

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