Misys Update Just In
High points from the announcements and conference call:
1. Revenues are flat, but cost reductions have improved margins.
2. Healthcare revenues were down 15% and orders were down 18%, continuing a highly unfavorable trend that started in the last half (UK companies report on halves instead of quarters.)
3. Mike Lawrie hinted that the company's physician business is a weakness (obviously).
4. R&D will be cut in the hospital products division to put money into physician systems.
5. Payerpath is doing well, but still losing money.
6. Healthcare margins are good at 15%, so investors liked that. The stock rose 8% primarily on margin news in both healthcare and banking.
7. Lawrie quotes: "Revenue is flat and this is largely consistent with first-half results, but we have much work yet to do, particularly in our healthcare business ... The performance of the (healthcare) business, not to mince words, remains poor ... We are focused on getting new products and services into the market as soon as possible ... There are a lot of issues there and frankly not having the right products in the market is an execution issue."
8. Lawrie did not rule out acquisitions, stating that "We are looking at all possibilities."
9. The company still wants to develop a physician ASP product. The apparently aborted ClearPractice ASP offering wasn't mentioned.
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