Customer preoccupation with Y2K led to a 6.8% drop in fourth-quarter revenue for healthcare information systems vendor IDX Systems, according to CEO Richard Tarrant. For the period (end-December 31), the Burlington, VT-based firm reported revenue of $87.9 million, compared with the $94.3 million in sales posted in the fourth quarter of 1998. Net income was $1.7 million, compared with $3.3 million last year.
For the year, IDX had revenues of $341 million, down 2.6% compared with the $350.2 million reported in 1998. The company posted a loss of $7.9 million, compared with net income of $16.8 million in 1998.
Despite the difficult year, IDX reported an increase in the number of requests-for-proposal (RFPs) from customers. In the last half of 1999, RFPs for clinical and financial systems increased by nearly a third over the same period in the prior year, according to the company. Nonetheless, IDX anticipates continued volatility in systems sales through at least the first half of 2000.
The firm expects total revenue to increase by 10% to 15% in 2000, driven by increased systems sales and service revenue, as well as continued growth in its EDiX and ChannelHealth subsidiaries. IDX acquired medical transcription firm EdiX in April 1999, and launched its Internet business, ChannelHealth, in October.
By AuntMinnie.com staff writersFebruary 10, 2000
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