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Jun.26
9:40 PM ET
Friday, 26 Jun 2009
Allscripts CEO: ‘We’re Just Getting Started’

On Wednesday, Allscripts-Misys Healthcare Solutions surprised Wall Street by pre-announcing better-than-expected fourth-quarter and fiscal-year 2009 earnings. The company, known for its medical-records efficiency software, said its orders for the quarter would clock in at $103 million, a 26% jump year-over-year.

Typically, such a statement would give investors reason for cheer, but it wasn’t long before analysts voiced their doubts about Allscripts [MDRX  Loading...      ()   ]. Deutsche Bank on the same day issued a report saying, “It is tough to discern the actual performance of the company,” and therefore the stock should be sold.

Allscripts CEO Glenn Tullman shot right back on Friday’s Mad Money, telling Cramer that the company’s performance is quite “easy” to discern.

In fact, Tullman said, “we’re just getting started.”

He offered some numbers to back his case: There are 163,000 small-sized physician offices in the US, those with between one and three doctors, that still need to purchase Allscripts’ software. That amounts to about $1.5 billion in that segment of the market alone.

“We’ve got tons of opportunity,” the CEO said. “This market is heating up, and we’re ready for it.”

Tullman and Cramer discussed the company’s new distribution network, the coming impact of President Obama’s stimulus and how Allscripts is “the Bloomberg for health care.” Watch the video for that and find out why Cramer said this stock is “still a moneymaker.”

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