Wednesday, 30 September 2009

Misys simmers under ‘white hot’ US healthcare sector

(By Philip Carnelley – Wednesday 30th September 2009 9:30am). Misys issued a Q1 IMS this morning in conjunction with the results from its Allscripts-Misys operation. While it might be unfair to use the phrase ‘jam tomorrow’ there was a more than a hint of that phrase in the air. As reported, revenues jumped 48%, to £169m, due to the Allscripts acquisition, and adjusted profits more than doubled. On a like-for-like basis, revenues fell 2% but adjusted profits rose 15%. The best news was that order intake, like-for-like, had risen 20%.

On the earnings call, CEO Mike Lawrie described the healthcare sector as “white hot”. Despite that, like-for-like, healthcare revenues (59% of group total) were flat, with licence fees down 3%. But orders have jumped 30%, and Lawrie was very excited by several large deals signed as well as a strong pipeline.

Treasury and Capital Markets (TCM) he firmly announced has “bottomed” and following a weakish Q4, had signed several new deals, such as US mortgage behemoth Freddie Mac, some of which had been held over from the previous quarter. Revenues were up 1%. The Banking division looked a little weaker with revenues down 8% (ILF down 27%). But Lawrie was upbeat here too, explaining that pipelines were building particularly in “new solution areas” – he particularly cited Trading Solutions where the pipeline had quadrupled.

Lawrie was quick to admit that pipelines need to be turned into sales, but it’s certainly a start. Even at this early stage, he is “pretty comfortable” about Misys meeting full year targets.

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