Allscripts Healthcare Swings to Loss

Allscripts Healthcare Solutions Inc. (MDRX) swung to a fourth-quarter loss as the electronic health-records company was hit by weaker sales, a deferred-revenue provision and other items.

However, shares were up 8% at $12.07 in recent after-hours trading as analysts said the company turned in solid bookings during the quarter. Through Tuesday's close, the stock has risen 19% this year.

The Chicago-based company--which endured a rocky year amid downturn in financial performance as well as management and board shakeups--late last year said it had finished a review of strategic options--including a possible sale--and that its board decided it was best to continue under new management.

The company in December said board member Paul Black would take over immediately as chief executive, succeeding longtime CEO Glen Tullman, and that the company's president also was stepping down.

Earlier Tuesday, the company disclosed some restructuring and cost-cutting efforts, including plans to close 12 offices and one warehouse. The company also is making changes to its corporate operating structure in an effort to trim product-development costs.

"Our fourth quarter and 2012 financial results did not meet our expectations," Mr. Black said. Following the conclusion of Allscripts' strategic review last year, Mr. Black said he has been engaged with clients and team members.

Allscripts Healthcare reported a loss of $24.3 million, or 14 cents a share, compared with a year-earlier profit of $26 million, or 14 cents a share. Excluding acquisition-related impacts, deferred-revenue impacts and other items, adjusted earnings were down at 16 cents from 25 cents a year earlier. Revenue decreased 9.6% to $350.9 million amid the deferred-revenue provision.

Analysts polled by Thomson Reuters most recently projected earnings of 20 cents on revenue of $368 million.

Gross margin fell to 38.8% from 45.1%.

Write to Tess Stynes at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires