NEW YORK (AP) — Shares of Allscripts Health Solutions Inc. rose Wednesday after the health care information technology company said it expects to report an increase in contract bookings for the second quarter.
Allscripts said it should report more than $200 million in bookings. That's up from $194 million in bookings during the second quarter of 2012. In the first quarter the company said its bookings fell to $178 million, a decline of 9 percent from the year before.
The company's shares advanced 90 cents, or 6.7 percent, to $14.28 in morning trading. Earlier the stock reached an annual high of $14.53.
The Chicago company also said it received a five-year extension of a managed IT services contract with the North Shore-LIJ Health System in New York during the quarter. That extension is not included in its second-quarter bookings but it is included in Allscripts' overall backlog. The total value of that backlog stood at $3.1 billion at the end of the second quarter, compared with $2.74 billion at the end of the first quarter.
Allscripts shares plunged in April 2012 after the company posted weak first-quarter results. Its net income was hurt by lower sales, bigger investments in product development, and other costs, and Allscripts said many clients held off on its services. The company fired its chairman and said three other directors resigned. The company replaced its management team in December and made two acquisitions in March.
Allscripts is scheduled to report its second-quarter results after the market closes Aug. 8.