IDXC Idx Systems (MM)

IDX Systems Corporation Reports 2005 First Quarter Results Continued growth reflects opportunity and execution BURLINGTON, Vt., April 28 /PRNewswire-FirstCall/ -- IDX Systems Corporation (NASDAQ:IDXC) reported results today for the first quarter ended March 31, 2005. Revenues for the first quarter 2005 increased to $143.1 million compared to $102.6 million in the first quarter of 2004. IDX reported first quarter 2005 net income of $8.6 million, or $0.27 per fully diluted share, compared to 2004 net income of $1.6 million, or $0.05 per fully diluted share. IDX notes the following significant financial highlights as of March 31, 2005: * Cash and marketable securities of $209.4 million * Days Sales Outstanding (DSOs) of 80 days * New business bookings of $101.2 million * Backlog of $1,200.4 million "We are pleased with our results this quarter, which reflect rich opportunities in the healthcare IT market as well as our ability to execute to plan. Our financial position is exceptionally strong, with record cash and securities and no debt on the balance sheet. We continue to grow revenues and expand margins, supported by a demonstrated ability to provide market-leading solutions to a prestigious customer base of large, complex healthcare organizations," said James H. Crook Jr., Chief Executive Officer of IDX. Separately today, IDX also announced an agreement to acquire the assets of RealTimeImage, Ltd. (RTI) for approximately $15.5 million in cash. RTI is a privately held, leading developer of a full range of Web-based medical specialty imaging solutions with offices in Tel Aviv, Israel and San Bruno, CA. The agreement is part of IDX's strategy to enhance its product and market competitiveness through acquiring leading edge technology and expertise. RTI patented technology, Pixels-on-Demand(TM) image streaming and multi-frame, cine-motion image viewing technology, is integrated into the recently announced IDX Imagecast for Cardiology product offering. The closing of the acquisition is subject to certain customary terms and conditions and is expected to close in the second quarter. IDX reiterated 2005 guidance of $610 - $630 million in revenue and earnings per share of $1.25 - $1.31 and 2006 guidance of $700 - $720 million in revenue and earnings per share of $1.65 - $1.75. A conference call with investors will be held on April 28, 2005 at 11:00 am EDT to discuss these results. An audio Webcast of the call is available at our Internet site: http://www.idx.com/, Investor Relations, Multimedia. Pixels-on-Demand is a trademark of RealTimeImage, Ltd. About IDX Founded in 1969, IDX Systems Corporation provides information technology solutions to maximize value in the delivery of healthcare, improve the quality of patient service, enhance medical outcomes, and reduce the costs of care. Our systems are deployed to serve approximately 150,000 physicians and are installed at over 3,400 customer sites, including more than 850 group practices and approximately 370 integrated delivery networks servicing more than 500 hospitals. IDX also provides its enterprise clinical software as a subcontractor to BT and Fujitsu Services, Local Service Providers for the United Kingdom National Health Service's National Programme for Information Technology, an initiative to establish electronic patient records for 50 million patients. The IDX web strategy includes browser technology, e-commerce and web-based tools -- built using Internet architecture -- that facilitates access for patients, physicians and care providers to vital health information and data managed by the IDX clinical, administrative, financial, and managed care products. IDX has approximately 2,400 full-time employees. This press release contains forward-looking statements about IDX Systems Corporation that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are uncertainties or difficulties in developing new services and systems, including Imagecast for Cardiology, difficulties in completing and integrating acquisitions, difficulties in implementing systems, possible deferral, delay or cancellation by customers of computer system or service purchase decisions, possible delay of system installations and service implementations, development by competitors of new or superior technologies, changing economic, political and regulatory influences on the healthcare industry, possible disruptions in the national economy caused by terrorist activities and foreign conflicts, changes in product pricing policies, governmental regulation of IDX's software and operations, the possibility of product-related liabilities, changes in our relationships with our partners, and factors detailed from time to time in IDX's periodic reports and registration statements filed with the Securities and Exchange Commission, which important factors are incorporated herein by reference. IDX undertakes no obligation to update forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events, or changes in future operating results, financial condition or business over time. IDX SYSTEMS CORPORATION Consolidated Balance Sheets (in thousands) March 31, December 31, 2005 2004 (unaudited) (audited) ASSETS Cash and cash equivalents $44,965 $67,346 Marketable securities 164,423 94,283 Accounts receivable, net 127,000 122,481 Deferred contract costs 28,985 24,209 Refundable income taxes 3,212 7,514 Prepaid and other current assets 9,986 8,199 Total current assets 378,571 324,032 Property and equipment, net 97,840 94,291 Deferred contract costs, less current portion 47,041 42,295 Capitalized software costs, net 5,824 5,596 Goodwill, net 7,163 7,163 Other intangible assets 2,514 2,514 Other assets 10,669 10,063 Deferred tax asset 8,533 10,961 Total assets $558,155 $496,915 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable, accrued expenses and other liabilities $76,895 $84,388 Deferred revenue 61,186 62,278 Deferred tax liability 25,877 6,579 Total current liabilities 163,958 153,245 Deferred revenue 13,187 11,365 Total liabilities 177,145 164,610 Stockholders' equity 381,010 332,305 Total liabilities and stockholders' equity $558,155 $496,915 IDX SYSTEMS CORPORATION Consolidated Statements of Operations (in thousands, except for per share data) (Unaudited) Three Months Ended March 31, 2005 2004 Revenues Systems sales $38,454 $33,559 Maintenance and service fees 104,605 68,991 Total revenues 143,059 102,550 Operating expenses Cost of systems sales 13,970 11,969 Cost of maintenance and services 72,339 45,839 Selling, general and administrative 30,679 28,427 Software development costs 13,694 13,887 Total operating expenses 130,682 100,122 Operating income 12,377 2,428 Other income Other income 817 116 Gain on investment 500 -- Total other income 1,317 116 Income before income taxes 13,694 2,544 Income tax provision (5,083) (967) Net income $8,611 $1,577 Basic earnings per share $0.28 $0.05 Basic weighted average shares outstanding 30,938 29,880 Diluted earnings per share $0.27 $0.05 Diluted weighted average shares outstanding 32,252 31,434 Earnings per share numbers may not foot due to rounding. IDX SYSTEMS CORPORATION Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended March 31, 2005 2004 OPERATING ACTIVITIES Net income from continuing operations $8,611 $1,577 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation 4,572 4,031 Amortization 820 458 Gain on sale of investment (500) -- Deferred taxes (815) (2,340) Increase in allowance for doubtful accounts 114 544 Stock-based compensation -- 52 Tax benefit related to exercise of non-qualified stock options 979 2,673 Foreign currency transaction losses, net 215 189 Loss on disposition of equipment -- 29 Changes in operating assets and liabilities: Accounts receivable (4,971) (24,454) Deferred contract costs (9,522) (7,422) Prepaid expenses and other assets (2,377) (2,669) Accounts payable and accrued expenses (5,161) 5,462 Federal and state income taxes 2,222 285 Deferred revenue 730 21,890 Net cash (used in) provided by operating activities (5,083) 305 INVESTING ACTIVITIES Purchase of property and equipment, net (8,192) (3,785) Purchase of marketable securities (38,519) (60,831) Proceeds from sale of marketable securities 28,525 53,466 Other assets (1,106) (1,636) Net cash used in investing activities (19,292) (12,786) FINANCING ACTIVITIES Proceeds from sale of common stock 2,052 5,788 Other 21 -- Net cash provided by financing activities 2,073 5,788 Effect of exchange rate fluctuations on cash and cash equivalents (79) (23) Decrease in cash and cash equivalents (22,381) (6,716) Cash and cash equivalents at beginning of period 67,346 25,536 Cash and cash equivalents at end of period $44,965 $18,820 Marketable securities 164,423 86,441 Total cash and marketable securities $209,388 $105,261 Contacts: Margo C. Happer Vice President Investor Relations and Corporate Communications 802-859-6169 DATASOURCE: IDX Systems Corporation CONTACT: Margo C. Happer, Vice President of Investor Relations and Corporate Communications, +1-802-859-6169 Web site: http://www.idx.com/

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