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EXHIBIT 99.3
[ECLIPSYS LOGO]
Contact:
Eclipsys: Randy L. Thomas, Corporate Strategy and Marketing (media)
(561) 266-2348 - [email protected]
Greg Wilson, CFO (investors)
(561) 266-2324 - [email protected]
ECLIPSYS ACCELERATES MOVE
TO SUBSCRIPTION-BASED PRICING METHODOLOGY
DELRAY BEACH, FL -- MAY 25, 2000 -- Eclipsys Corporation(R) (NASDAQ: ECLP-news)
today announced that it is accelerating its move to an application services
provider (ASP)-based pricing and processing model.
"Subscription-based methodology is increasingly sought by
capital-constrained healthcare organizations, and this move will significantly
increase Eclipsys' percentage of recurring revenues, which are already among the
highest in the industry," stated Harvey J. Wilson, chairman and CEO. "While the
market will still accept traditional upfront license fees, the
subscription-based payment model is more compatible with the business models
being employed by our customers, as well as with the Internet technologies we
are increasingly using to deploy our software."
While Eclipsys remains comfortable with its previously announced
expectation of 2000 bookings in the $300-million range, the shift to ASP-based
pricing spreads more of the total contract value over the life of the company's
new multi-year agreements. Greg Wilson, senior vice president and CFO, said that
"Eclipsys anticipates 2000 revenues in the range of $210 million to $220 million
and EPS of break-even. Anticipated 2001 revenues are in the range of $260
million to $270 million and EPS in the range of $0.45 to $0.50."
These revised numbers also reflect the loss of some of the anticipated
cross-selling opportunities available in the planned relationship with
Neoforma.com and HEALTHvision. In a separate but related announcement, the
companies today reported that the merger, originally announced on March 30,
2000, was terminated by the parties today, effective immediately. "However, we
remain excited about our ability to maintain the broader value we envisioned the
merger would bring to our customers, by the signing today of a strategic
co-marketing and distribution arrangement between Eclipsys, Neoforma and
HEALTHvision," CEO Wilson stated.
CFO Wilson also noted that the revised numbers reflect an overall
slowdown in healthcare information technology implementations this year. "In the
aftermath of significant Y2K-related spending, many healthcare organizations are
focusing their finite resources on non-IT areas. This is slowing implementation
activity -- a trend that is expected to continue until it turns upward in 2001."
The CFO stated that Eclipsys remains well positioned for continued
growth. "Our first-quarter bookings set a new record, and our strong and growing
sales pipeline contains significant opportunities for net-new business as well
as major ongoing cross-selling opportunities within our growing 1,400-member
customer base. We expect
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T H E O U T C O M E S C O M P A N Y(R)
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ECLIPSYS CORPORATION
ECLIPSYS ACCELERATES MOVE TO SUBSCRIPTION-BASED PRICING MODEL
MAY 25, 2000 - PAGE 2 OF 2
that our new ASP payment methodology -- coupled with the documented ability of
our solutions to improve outcomes -- will continue to enable Eclipsys to gain
market share."
Eclipsys cautions that its ability to meet bookings, revenues and
earnings goals reported in this release is subject to a number of risks,
including potential delays in significant customer orders, government
regulations which could adversely impact demand for Eclipsys products, delays in
product implementation and the loss of key management, sales and technical
personnel.
ABOUT ECLIPSYS
Eclipsys Corporation (www.eclipsys.com) delivers end-to-end information
solutions that enable healthcare enterprises to achieve balanced and improved
clinical, financial and customer-satisfaction outcomes. Solutions include its
comprehensive, knowledge-based Sunrise software line; leading-edge enterprise
application integration (EAI) solutions; application services provider (ASP)
information-management solutions; business process reengineering; network design
and implementation; and full IT outsourcing. In conjunction with its
HEALTHvision affiliate (see www.healthvision.com), Eclipsys provides customized,
locally branded Web-based solutions to healthcare delivery systems. Eclipsys has
more than 1,400 customer organizations throughout the U.S. and in 17 other
countries. For more information, contact Investor Relations at
[email protected] or by calling (561) 266-2324.
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Statements in this news release concerning future results, performance or
expectations are forward-looking statements. Because such statements involve
risks and uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. These risks include
risks described in the filings of Eclipsys with the Securities and Exchange
Commission. Eclipsys undertakes no obligation to update the information
contained in this press release. Eclipsys, Eclipsys Corporation and The Outcomes
Company are registered trademarks and Sunrise is a trademark of Eclipsys
Solutions Corp. Other product and company names in this news release are
trademarks or registered trademarks of their respective companies.
