January 30, 2009 / 7:20 AM / 10 years ago

UPDATE 3-Misys eyeing Obama boost for healthcare

* Revenue, adjusted operating profit in line

* Says expects to deliver against FY targets (Recasts, adds further details)

By Kate Holton

LONDON, Jan 30 (Reuters) - British IT firm Misys MSY.L expects to hit its full-year targets with a boost to its U.S. healthcare division from President Barack Obama’s economic stimulus plan.

The group, which supplies software to the financial sector and to U.S. doctors through its Allscripts-Misys (MDRX.O) subsidiary, said the strength of its healthcare division could offset weakness in the finance sector, although this had so far held up well.

“Almost 55 percent of our total revenue comes from the U.S. healthcare industry,” Chief Executive Mike Lawrie told journalists. “With this stimulus package, we couldn’t be at a better place in this point in time.”

The U.S. Senate is expected to start considering a stimulus bill next week which could end up costing around $900 billion and is likely to invest in sectors like health.

Misys said it had managed to sustain its levels of revenue and profitability in the Banking and Treasury and Capital Markets divisions despite the global economic downturn, due in part to favourable exchange rates and high recurring revenues.

It posted adjusted operating profit from continuing operations up 3 percent to 36 million pounds ($50.80 million), and revenues of 280 million pounds.

Analysts were expecting the group to report first-half sales of 274.4 million pounds and adjusted operating profit of 33 million pounds, according to Reuters Estimates and the company.

“The diversity of our products and solutions, business units, and geographic footprint, together with our strong recurring revenue and the fact that 55 percent of our revenues now come from the healthcare market in America, is helping to drive growth,” Lawrie said.

“While we are conscious of the difficult environment, we remain optimistic that we will deliver against our full year targets.”

The group said in September it would look for full-year growth of 5 and 8 percent.

Misys Healthcare Systems merged with Allscripts Healthcare Solutions last year and the company said the integration was on schedule, with the benefits of some of the synergies already coming through.

The stock, which has underperformed its peers .FTASX9530 by 19 percent over the last 12 months and hit a more than 10-year low in November 2008 of 78 pence, was up 2.6 percent. ($1=.7087 pounds) (Reporting by Kate Holton; Editing by Mike Nesbit and Rupert Winchester)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below