GAAP net income for the third quarter of 2009 was $3.9 million, or $0.07 per diluted common share, compared to GAAP net income of $87.4 million, or $1.58 per share on a diluted basis for the third quarter of 2008. GAAP net income in the third quarter of 2008 included a one-time income tax benefit of $80.0 million associated with the reversal of the company's deferred tax valuation allowance.

Non-GAAP Results

Non-GAAP net income for the third quarter of 2009 was $8.2 million, or $0.14 per diluted common share, compared to third quarter 2008 non-GAAP net income of $16.3 million, or $0.30 per diluted share. A detailed reconciliation of GAAP to non-GAAP results is included in the attached tables.

"Our third-quarter performance was in-line with our expectations," said Philip M. Pead, Eclipsys president and chief executive officer. "I was very pleased with our bookings in the third quarter, particularly the amount of new enterprise business we signed."

The non-GAAP earnings per share guidance range remains $0.55 to $0.60 for 2009, and the company will provide 2010 financial guidance in its fourth quarter earnings release.

Balance Sheet Update

In the quarter, Eclipsys repaid $45 million of debt on its credit facility. These payments were funded through available cash, operating cash flows and $23.6 million in proceeds from the sale of auction rate securities. Eclipsys ended the quarter with $122.1 million of cash and $86.0 million in long-term investments.

Through the third quarter of 2009, Eclipsys has generated $29.9 million in free cash flows, compared to $8.7 million through the third quarter of 2008. The company defines free cash flow as operating cash flows less capitalized software development costs and capital expenditures.

Conference Call

Eclipsys executives will discuss the third-quarter results on a teleconference at 4:30 p.m. Eastern time on November 5. Persons interested in participating in the teleconference should call (800) 288-8968 approximately 15 minutes before the conference call is slated to begin. For listen-only mode, participants can go to www.eclipsys.com prior to the conference call to register and download the necessary audio software.

Replay

About two hours after its completion, an audio replay of the call will be available on www.eclipsys.com for approximately 48 hours.

About Eclipsys

Eclipsys is a leading provider of advanced integrated clinical, revenue cycle and performance management software, clinical content and professional services that help healthcare organizations improve clinical, financial and operational outcomes. For more information, see www.eclipsys.com or email info@eclipsys.com.

Non-GAAP Measures

The company has provided net income and earnings per share financial measures on a non-GAAP basis for the three months ended September 30, 2009 and September 30, 2008, which exclude non-cash stock-based compensation expenses, amortization expense associated with acquisitions, and certain additional items that the company does not consider to be indicative of its underlying business performance, as listed on the attached GAAP to non-GAAP reconciliation tables. Because of the significance of the GAAP components excluded, these non-GAAP financial measures should not be considered a substitute for, or superior to, any measure derived in accordance with GAAP. These non-GAAP financial measures may also be inconsistent with the manner in which similar measures are derived or used by other companies. Management believes that the non-GAAP financial measures provided, when considered in conjunction with comparable GAAP financial measures, facilitate the understanding and evaluation of the company's operating performance and future prospects, as well as comparisons of the company's results with its prior period results that did not include these gains and/or charges, and with results of other companies on a more consistent basis. Internally, management uses non-GAAP net income and earnings for forecasting and to help make management decisions, as an indicator of business performance, and to evaluate management's effectiveness and help determine bonuses for management and others.

The economic substance of omitting non-cash stock-based compensation expense in presenting non-GAAP earnings derives from providing investors with consistent measures of performance both before and after including non-cash stock-based compensation charges. The economic substance of omitting the other items incurred that the company does not consider to be indicative of its underlying business performance derives from the fact that such episodic gains and/or charges make it more difficult to compare operating results of different periods, not all of which include such gains and/or charges. However, the omission of non-cash stock-based compensation expense may mask an economic cost incurred by the company in connection with stock-based compensation, and the omission of the charges related to the company's other non-GAAP adjustments may mask actual and expected future costs associated with such matters. Management compensates for these limitations by using both the GAAP and non-GAAP measures.

The company has provided reconciling tables attached to this release.

Caution Regarding Forward-Looking Statements

Certain statements in this news release or the investor call referenced herein, including those concerning the company's operational initiatives, future performance expectations, and effects of economic conditions are forward-looking statements and actual results may differ materially from those projected or implied by the forward-looking statements due to a variety of risks and uncertainties. Future performance expectations are predicated upon achievement of various sales and performance targets that may be difficult to meet. Economic conditions are unstable and may cause hospitals and other healthcare providers to curtail HIT system spending. Eclipsys' cost reduction and other initiatives in response to the challenging economic environment, including initiatives designed to improve operational efficiencies, may not be effective, and it is difficult to predict what the company may be able to achieve. Eclipsys sales may fall below expectations due to market conditions, competition, and other factors, including client demands for pricing and financing concessions. Costs may be greater than anticipated due to the potential need to increase spending to ensure performance in accordance with commitments to clients, regulatory requirements, and other factors. Software development may take longer and cost more than expected, and incorporation of anticipated features and functionality (including as required to comply with ARRA and related regulations, as well as other certification standards) may be delayed, due to various factors including programming and integration challenges and resource constraints. The market is highly competitive. Implementation and customization of Eclipsys software is complex and time-consuming. Results depend upon a variety of factors and can vary by client. Each client's circumstances are unique and may include unforeseen issues that make it more difficult than anticipated to implement or derive benefit from software, implementation or consulting services. The success and timeliness of the company's services will depend at least in part upon client involvement, which can be difficult to control. Eclipsys is required to meet specified performance standards and regulatory requirements, and clients can terminate contracts, assess penalties or reduce contract scope under certain circumstances. More information about company risks is available in recent Form 10-K and other filings made by Eclipsys from time to time with the Securities and Exchange Commission. Special attention is directed to the portions of those documents entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations."

Eclipsys Corporation
GAAP Income Statements (Unaudited)
(in thousands, except per share amounts)
                                                             Three Months Ended   Three Months Ended   $ Change        % Change      Year-to-date         Year-to-date         $ Change        % Change
                                                             September 30, 2009   September 30, 2008                                 September 30, 2009   September 30, 2008
Revenues:
           Systems and services                              $      123,471       $      127,575       $ (4,104  )     -3.2     %    $      379,283       $      373,021       $ 6,262         1.7      %
           Hardware                                                 2,015                4,849           (2,834  )     -58.4    %           6,217                15,925          (9,708  )     -61.0    %
           Total revenues                                           125,486              132,424         (6,938  )     -5.2     %           385,500              388,946         (3,446  )     -0.9     %
Cost and expenses:
           Costs of systems and services                            66,455               73,166          (6,711  )     -9.2     %           201,644              210,042         (8,398  )     -4.0     %
           Costs of hardware                                        1,672                5,457           (3,785  )     -69.4    %           5,278                13,408          (8,130  )     -60.6    %
           Sales and marketing                                      20,876               19,498          1,378         7.1      %           71,020               63,150          7,870         12.5     %
           Research and development                                 13,204               14,195          (991    )     -7.0     %           40,568               47,102          (6,534  )     -13.9    %
           General and administrative                               10,772               8,202           2,570         31.3     %           35,223               26,877          8,346         31.1     %
           Depreciation and amortization                            7,980                5,145           2,835         55.1     %           24,132               15,651          8,481         54.2     %
           Restructuring                                            -                    -               -                                  5,434                -               5,434         * N/M
           In-process research and development charge               -                                    -                                  -                    850             (850    )     -100.0   %
           Total costs and expenses                                 120,959              125,663         (4,704  )     -3.7     %           383,299              377,080         6,219         1.6      %
Income (loss) from operations                                       4,527                6,761           (2,234  )     -33.0    %           2,201                11,866          (9,665  )     -81.5    %
Gain (loss) on sale of assets                                       809                  685             124           18.1     %           2,046                4,200           (2,154  )     -51.3    %
Gain (loss) on ARS                                                  (871    )            -               (871    )     * N/M                (338    )            -               (338    )     * N/M
Interest expense                                                    (716    )            (499    )       (217    )     43.5     %           (2,821  )            (1,219  )       (1,602  )     131.4    %
Interest income                                                     316                  1,133           (817    )     -72.1    %           1,844                4,800           (2,956  )     -61.6    %
Income (loss) before income taxes                                   4,065                8,080           (4,015  )     -49.7    %           2,932                19,647          (16,715 )     -85.1    %
Provision for income taxes                                          185                  (79,316 )       79,501        * N/M                4,019                (76,549 )       80,568        * N/M
Net income (loss)                                            $      3,880         $      87,396        $ (83,516 )     -95.6    %    $      (1,087  )     $      96,196        $ (97,283 )     -101.1   %
           Basic EPS:
Net income (loss)                                            $      3,880         $      87,396        $ (83,516 )     -95.6    %    $      (1,087  )     $      96,196        $ (97,283 )     -101.1   %
Less: Income allocated to participating securities                  34                   971             (937    )     -96.5    %           -                    1,133           (1,133  )     -100.0   %
Net income (loss) available to common shareholders           $      3,846         $      86,425        $ (82,579 )     -95.5    %    $      (1,087  )     $      95,063        $ (96,150 )     -101.1   %
           Basic weighted average common shares outstanding         56,036               53,861          2,175         4.0      %           55,739               53,684          2,055         3.8      %
           Basic net income (loss) per common share          $      0.07          $      1.60          $ (1.53   )     -95.6    %    $      (0.02   )     $      1.77          $ (1.79   )     -101.1   %
           Diluted EPS:
Net income (loss)                                                   3,880                87,396          (83,516 )     -95.6    %           (1,087  )            96,196          (97,283 )     -101.1   %
Less: Income allocated to participating securities                  34                   956             (922    )     -96.5    %           -                    1,115           (1,115  )     -100.0   %
Net income (loss) available to common shareholders           $      3,846         $      86,440        $ (82,594 )     -95.6    %    $      (1,087  )     $      95,081        $ (96,168 )     -101.1   %
           Basic weighted average common shares outstanding         56,036               53,861          2,175         4.0      %           55,739               53,684          2,055         3.8      %
           Dilutive effect of potential common shares               946                  855             91            10.6     %           -                    875             (875    )     -100.0   %
Diluted weighted average shares common outstanding                  56,982               54,716          2,266         4.1      %           55,739               54,559          1,180         2.2      %
Diluted earnings (loss) per common share                     $      0.07          $      1.58          $ (1.51   )     -95.7    %    $      (0.02   )     $      1.74          $ (1.76   )     -101.1   %
           * N/M - not meaningful

ECLIPSYS CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
                                                                                          September 30,        December 31,
                                                                                          2009                 2008
                                                                                          (Unaudited)
Assets
Current assets:
               Cash                                                                       $    122,106         $    108,304
               Marketable securities                                                           -                    154
               Accounts receivable, net of allowance for doubtful accounts of                  106,010              121,811
               $3,244
               and $4,912, respectively
               Prepaid expenses                                                                25,490               23,975
               Deferred tax asset                                                              259                  2,643
               Other current assets                                                            4,629                5,712
                                               Total current assets                            258,494              262,599
Long-term investments                                                                          85,964               107,215
Property and equipment, net                                                                    57,919               53,996
Capitalized software development costs, net                                                    48,923               37,718
Acquired technology, net                                                                       32,060               39,710
Intangible assets, net                                                                         8,122                10,258
Goodwill                                                                                       98,394               96,973
Deferred tax asset                                                                             88,272               89,063
Other assets                                                                                   14,059               11,343
                                               Total assets                               $    692,207         $    708,875
Liabilities and Stockholders' Equity
Current liabilities:
               Deferred revenue                                                           $    120,049         $    123,733
               Accounts payable                                                                11,191               20,924
               Accrued compensation costs                                                      33,302               16,457
               Deferred tax liability                                                          3,318                -
               Other current liabilities                                                       18,846               22,481
                                               Total current liabilities                       186,706              183,595
               Deferred revenue                                                                6,012                5,743
               Long term debt and capital lease obligations                                    60,842               105,000
               Other long-term liabilities                                                     15,783               16,540
                                               Total liabilities                               269,343              310,878
Stockholders' equity:
               Common stock, $0.01 par value, 200,000,000 shares authorized;                   567                  561
               issued
               and outstanding, 56,706,804 and 56,126,674, respectively
               Additional paid-in capital                                                      591,345              569,717
               Accumulated deficit                                                             (165,799 )           (164,712 )
               Accumulated other comprehensive income                                          (3,249   )           (7,569   )
                                               Total stockholders' equity                      422,864              397,997
                                               Total liabilities and stockholders' equity $    692,207         $    708,875

ECLIPSYS CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
                                                                                                      For the Nine Months Ended         For the Three Months Ended
                                                                                                      September 30,                     September 30,
                                                                                                         2009            2008               2009              2008
Operating activities:
              Net income                                                                              $  (1,087  )    $  96,196         $   3,880         $   87,396
              Adjustments to reconcile net income to net cash
                                  provided by operating activities:
                                  Depreciation and amortization                                          37,014          29,818             12,181            9,267
                                  Provision for bad debt                                                 2,446           2,655              450               1,255
                                  In-process research and development charge                             -               850                -                 -
                                  Deferred income taxes                                                  3,777           (78,184  )         103               (78,551 )
                                  Gain on sale of marketable securities                                                  (30      )
                                  Stock compensation expense                                             14,768          13,093             3,599             5,627
                                  Gain on sale of assets                                                 (2,046  )       (4,168   )         (809    )         (683    )
                                  Foreign Currency (gain) /loss                                          924             (317     )         413               (125    )
                                  Interest Income Received, net                                          -               588                -                 64
              Changes in operating assets and liabilities, excluding the
              effect
              of acquisitions and dispositions:
                                  Accounts receivable                                                    7,066           (21,611  )         5,118             (2,803  )
                                  Prepaid expenses and other current assets                              1,420           755                (160    )         4,823
                                  Inventory                                                              -               -                  -                 18
                                  Other assets                                                           59              (289     )         556               (1,336  )
                                  Deferred revenue                                                       (1,217  )       (3,378   )         2,414             5,127
                                  Accrued compensation                                                   16,964          (5,029   )         8,331             1,678
                                  Accounts payable and other current liabilities                         (12,375 )       5,936              (5,487  )         2,038
                                  Long-term liabilities                                                  1,739           3,971              174               1,033
                                  Other reconciling items                                                745             692                1,681             162
                                                           Total adjustments                             71,284          (54,648  )         28,564            (52,406 )
                                                           Net cash provided by operating activities     70,197          41,548             32,444            34,990
Investing activities:
                                  Purchases of property and equipment                                    (17,556 )       (20,432  )         (5,002  )         (7,117  )
                                  Purchase of marketable securities                                                      (102,000 )
                                  Proceeds from sales of marketable securities                           24,061          151,100            23,911
                                  Proceeds from sale of assets                                                           698
                                  Proceeds from sale of debt and equity securities                                       2,541
                                  Capitalized software development costs                                 (22,728 )       (12,417  )         (8,076  )         (5,476  )
                                  Restricted Cash                                                                        1,963                                1,963
                                  Earnout out on disposition                                             2,079           3,578              838               996
                                  Cash paid for acquisitions, net of cash acquired                       (2,984  )       (54,593  )         (165    )         (223    )
                                                           Net cash used in investing activities         (17,128 )       (29,562  )         11,506            (9,857  )
Financing activities:
                                  Proceeds from stock options exercised                                  5,587           5,283              2,281             2,844
                                  Proceeds from employee stock purchase plan                             666             615                212               240
                                  Cash paid for debt issuance costs                                                      (1,430   )                           (1,009  )
                                  Repayment of secured financing                                         (45,000 )       (95,000  )         (45,000 )         (50,000 )
                                  Proceeds from secured financing                                                        146,000                              51,000
                                  Other                                                                  (80     )                          (21     )
                                                           Net cash provided by financing activities     (38,827 )       55,468             (42,528 )         3,075
Effect of exchange rates on cash and cash equivalents                                                    (440    )       (588     )         (241    )         (352    )
Net increase (decrease) in cash and cash equivalents                                                     13,802          66,866             1,181             27,856
Cash and cash equivalents -- beginning of period                                                         108,304         22,510             120,925           61,520
Cash and cash equivalents -- end of period                                                            $  122,106      $  89,376         $   122,106       $   89,376

Eclipsys Corporation
Reconciliation of GAAP (Unaudited) to Non-GAAP Items
(in thousands, except per share amounts)
                                                                 Three Months Ended   Three Months Ended   Year-to-date        Year-to-date
                                                                 September 30, 2009   September 30, 2008   September 30, 2009  September 30, 2008
Revenues:
     GAAP Revenues                                               $      125,486       $      132,424       $      385,500      $      388,946
               Premise acquisition accounting (1)                       594                                       5,945
     Non-GAAP revenues                                           $      126,080       $      132,424       $      391,445      $      388,946
     GAAP Recurring revenues                                     $      89,425        $      84,757        $      267,435      $      248,963
               Premise acquisition accounting (1)                       154                                       882
     Non-GAAP Recurring revenues                                 $      89,579        $      84,757        $      268,317      $      248,963
     GAAP Professional services revenues                         $      25,468        $      34,028        $      84,616       $      96,042
               Premise acquisition accounting (1)                       160                                       1,082
     Non-GAAP Professional services revenues                     $      25,628        $      34,028        $      85,698       $      96,042
     GAAP Periodic revenues                                      $      8,577         $      8,809         $      27,230       $      28,116
               Premise acquisition accounting (1)                       261                                       3,847
     Non-GAAP Periodic revenues                                  $      8,838         $      8,809         $      31,077       $      28,116
     GAAP Hardware revenues                                      $      2,015         $      4,849         $      6,217        $      15,925
               Premise acquisition accounting (1)                       19                                        134
     Non-GAAP Hardware revenues                                  $      2,034         $      4,849         $      6,351        $      15,925
Gross Margin
               Revenues                                          $      125,486       $      132,424       $      385,500      $      388,946
               Costs of systems and services                            (66,455 )            (73,166 )            (201,644 )          (210,042 )
               Cost of hardware                                         (1,672  )            (5,457  )            (5,278   )          (13,408  )
     GAAP Gross margin (A)                                              57,359               53,801               178,578             165,496
               Adjustments
               Premise acquisition accounting (1)                       486                                       5,038
               Stock-based compensation expense (2)                     501                  2,433                1,500               5,818
               Headquarter relocation (3)                                                                                             419
               Restructuring (4)                                        585                                       585
               Professional Services Reorganization (5)                                      1,080                                    1,080
               Non-recurring items (6)                                                       782                                      782
     Non-GAAP gross margin                                       $      58,931        $      58,096        $      185,701      $      173,595
Operating Expenses
     GAAP operating expenses (B)                                 $      52,832        $      47,040        $      176,377      $      153,630
               Adjustments
               Stock-based compensation expense (2)                     (3,098  )            (3,191  )            (13,266  )          (7,273   )
               Headquarter relocation (3)                                                                                             (2,521   )
               Restructuring (4)                                        (556    )                                 (9,182   )
               Professional Services Reorganization (5)                                      (298    )                                (298     )
               Derivative litigation (7)                                                                                              (1,353   )
               Amortization (8)                                         (3,124  )            (1,121  )            (9,372   )          (2,666   )
               EPSI research and development charge (9)                                                                               (850     )
               Valuation allowance reversal (10)                                             (177    )                                (177     )
     Non-GAAP operating expenses                                 $      46,054        $      42,253        $      144,557      $      138,492

Eclipsys Corporation
Reconciliation of GAAP (Unaudited) to Non-GAAP Items
(in thousands, except per share amounts)
                                                                              Three Months Ended   Three Months Ended   Year-to-date         Year-to-date
                                                                              September 30, 2009   September 30, 2008   September 30, 2009   September 30, 2008
Gross Research and Development Expenses
        GAAP research and development                                         $      13,204        $      14,195        $      40,568        $      47,102
                  Adjustments
                  Stock-based compensation expense (2)                               (565   )             (401   )             (1,564 )             (991   )
                  Headquarter relocation (3)                                                                                                        (159   )
                  Restructuring (4)                                                  (40    )                                  (40    )
        Non-GAAP research and development                                            12,599               13,794               38,964               45,952
        Capitalized software and development costs                                   8,076                5,281                22,728               12,417
        Non-GAAP gross research and development expenses                      $      20,675        $      19,075        $      61,692        $      58,369
Operating Income
        GAAP operating income                                                 $      4,527         $      6,761         $      2,201         $      11,866
                  Adjustments
                  Premise acquisition accounting (1)                                 486                                       5,038
                  Stock-based compensation expense (2)                               3,599                5,624                14,766               13,091
                  Headquarter relocation (3)                                                                                                        2,940
                  Restructuring (4)                                                  1,141                                     9,767
                  Professional Services Reorganization (5)                                                1,378                                     1,378
                  Non-recurring items (6)                                                                 782                                       782
                  Derivative litigation (7)                                                                                                         1,353
                  Amortization (8)                                                   3,124                1,121                9,372                2,666
                  EPSI research and development charge (9)                                                                                          850
                  Valuation allowance reversal (10)                                                       177                                       177
        Non-GAAP operating income                                             $      12,877        $      15,843        $      41,144        $      35,103
Pre-tax income
        GAAP pre-tax income                                                   $      4,065         $      8,080         $      2,932         $      19,647
                  Adjustments
                  Premise acquisition accounting (1)                                 486                                       5,038
                  Stock-based compensation expense (2)                               3,599                5,624                14,766               13,091
                  Headquarter relocation (3)                                                                                                        2,940
                  Restructuring (4)                                                  1,141                                     9,767
                  Professional Services Reorganization (5)                                                1,378                                     1,378
                  Non-recurring items (6)                                                                 782                                       782
                  Derivative litigation (7)                                                                                                         1,353
                  Amortization (8)                                                   3,124                1,121                9,372                2,666
                  EPSI research and development charge (9)                                                                                          850
                  Valuation allowance reversal (10)                                                       177                                       177
                  Gain on sale of assets (11)                                                                                                       (3,482 )
                  ARS Sale (12)                                                      1,114                                     1,114
        Non-GAAP pre-tax income                                               $      13,529        $      17,162        $      42,989        $      39,402

Eclipsys Corporation
Reconciliation of GAAP (Unaudited) to Non-GAAP Items
(in thousands, except per share amounts)
                                                                  Three Months Ended   Three Months Ended   Year-to-date         Year-to-date
                                                                  September 30, 2009   September 30, 2008   September 30, 2009   September 30, 2008
Net Income
       GAAP net income                                            $      3,880         $      87,396        $      (1,087 )      $      96,196
                Adjustments
                Premise acquisition accounting (1)                       288                                       3,129
                Stock-based compensation expense (2)                     2,488                5,624                10,153               13,091
                Headquarter relocation (3)                                                                                              2,940
                Restructuring (4)                                        684                                       6,066
                Professional Services Reorganization (5)                                      1,378                                     1,378
                Non-recurring items (6)                                                       782                                       782
                Derivative litigation (7)                                                                                               1,353
                Amortization (8)                                         1,923                1,121                5,821                2,666
                EPSI research and development charge (9)                                                                                850
                Valuation allowance reversal (10)                                             (79,954 )                                 (79,954 )
                Gain on sale of assets (11)                                                                                             (3,227  )
                ARS Sale (12)                                            692                                       692
                State tax provision (13)                                                                                                1,540
                Taxes (14)                                               (1,727 )                                  1,925
       Non-GAAP net income                                        $      8,228         $      16,347        $      26,699        $      37,615
Diluted earnings per share
       Diluted earnings per share                                 $      0.07          $      1.58          $      (0.02  )      $      1.74
                Adjustments
                Premise acquisition accounting (1)                       0.01                                      0.05
                Stock-based compensation expense (2)                     0.04                 0.10                 0.18                 0.24
                Headquarter relocation (3)                                                                                              0.05
                Restructuring (4)                                        0.01                                      0.11
                Professional Services Reorganization (5)                                      0.02                                      0.02
                Non-recurring items (6)                                                       0.01                                      0.01
                Derivative litigation (7)                                                                                               0.02
                Amortization (8)                                         0.03                 0.02                 0.10                 0.04
                EPSI research and development charge (9)                                                                                0.02
                Valuation allowance reversal (10)                                             (1.45   )                                 (1.45   )
                Gain on sale of assets (11)                                                                                             (0.06   )
                ARS Sale (12)                                            0.01                                      0.01
                State tax provision (13)                                                                                                0.03
                Taxes (14)                                               (0.03  )                                  0.03
       Non-GAAP diluted earnings per share                        $      0.14          $      0.30          $      0.47          $      0.68

Eclipsys Corporation
Reconciliation NOTES of GAAP (Unaudited) to Non-GAAP Items
               1   Deferred revenue adjustments net of deferred costs adjustments
                   related to the Company's December 2008 acquisition of Premise
                   Corporation. The amounts represent the reduction of deferred revenue
                   and related deferred costs acquired from Premise as a result of
                   purchase accounting adjustments.
               2   Represents stock based compensation expense.
               3   Amounts incurred to relocate the corporate headquarters from Boca
                   Raton to Atlanta, including salaries and benefits associated with
                   the termination of employees not relocating and other administrative
                   costs associated with the move.
               4   Severance related activity primarily in the Company's professional
                   services organization. Also includes severance costs in the second
                   quarter of 2009 associated with the departure of the Company's CEO.
               5   Severance costs associated with the reorganization of the Company's
                   professional services organization in the third quarter of 2008.
               6   Nonrecurring adjustments from prior years.
               7   Charges incurred as a result of the voluntary stock option review
                   completed in the second quarter 2007 and are related primarily to
                   legal fees associated with the subsequent derivative litigation.
                   These costs are net of insurance recoveries in the second quarter
                   2008.
               8   Amortization of intangible assets associated with 2008 acquisitions.
               9   Write off of in-process research and development associated with our
                   acquisition of EPSI.
               10  Income tax benefit associated with the reversal of the Company's
                   deferred tax valuation allowance.
               11  Gain resulted from the achievement of certain post-closing
                   milestones associated with the December 2007 sale of the Clinical
                   Practice Model Resource Center (CPMRC) business.
               12  Realized loss on the sale of one of the Company's auction rate
                   securities for $23.6 million.
               13  Accounting rule issued related to Uncertainty in Income Taxes
                   clarified the criteria for recognizing income tax benefits. This
                   charge was recorded as a result of the review of uncertain state tax
                   positions.
               14  Represents a combination of discrete tax items, primarily deferred
                   tax asset adjustments for Canadian research and development credits
                   in the second quarter and non-GAAP tax adjustments to reflect the
                   non-GAAP annual effective tax rate.
                   Notes
               A   GAAP gross margin equals revenue less costs of systems and
                   services and costs of hardware.
               B   GAAP operating expenses include sales and marketing expense,
                   research and development expense , general and administrative
                   expense, depreciation and amortization expense, restructuring
                   charge, and in process research and development charge.

SOURCE: Eclipsys Corporation

Eclipsys 
Jason Cigarran, 404-847-5965 
Vice President, Investor Relations 
jason.cigarran@eclipsys.com

-- Earlier identification and treatment of septic patients, a condition associated with a 20 percent to 50 percent mortality rate among patients and the 10th leading cause of death in the United States. Sepsis-related order sets, a nursing documentation tool and an emergency department structured note were created to identify and initiate treatment within hour one;

-- More than doubling a goal to reduce the average time to adjudicate a claim; related process improvements resulted in additional revenues of $450,000 and recouping $3.3 million;

-- Replacement of a legacy decision support solution to accelerate from days to minutes the timeframe for management to receive actionable cost accounting data and 'What If' scenario analysis;

-- Realizing a 95 percent CPOE adoption rate within a community hospital environment in three months and continuing to maintain that adoption rate;

-- Transforming care processes by establishment of evidenced-based interdisciplinary documentation across a large, multi-facility health system; and

-- User advocacy and product development feedback through active participation in Eclipsys Communities(TM), the company's online networking forum to facilitate client knowledge-sharing and collaboration.

The Eclipsys Circle of Excellence Award is presented annually to Eclipsys clients who demonstrate innovation and achievements in one of four categories -- process improvement, adoption, collaboration, or active participation in the Eclipsys ClientConnect(TM) program, which fosters client knowledge-sharing and collaboration. Each winning organization receives a $2,000 grant for its foundation or charity of choice.

"We are pleased to honor these valued clients for their outstanding efforts and innovations that have resulted in improved care delivery and business performance," said Diane Bradley, M.D., Eclipsys' chief quality and outcomes officer. "We believe Eclipsys clients are among the best and brightest healthcare professionals who are focused on using enabling technologies to improve the quality and efficiencies of healthcare, which has taken center stage in national debate. This year's winners exemplify the tremendous amount of collective expertise within our client base in how to capitalize on the inherent sophistication and value designed into Eclipsys applications. Our winners demonstrate why Eclipsys clients are among the higher-performing organizations in the healthcare industry."

The 2009 Eclipsys Circle of Excellence Award winners are:

Orlando Health, Orlando, FL-- Severe sepsis (infection-induced organ failure) is associated with a 20 percent to 50 percent mortality rate among patients and is the 10th leading cause of death in the United States, resulting in an annual economic burden of nearly $17 billion. Orlando Health used Eclipsys' CPOE solution, Sunrise Acute Care(TM), to support earlier identification of septic patients and meet a goal to decrease the relative risk of mortality by 25 percent. Sepsis-related order sets, a nursing documentation tool and an emergency department structured note were created to identify and initiate treatment within hour one. In process is development of a Medical Logic Module to alert clinical staff that patients meet the criteria for sepsis. Orlando Health won an award in the process improvement (quality/patient safety) category.

Orange Regional Medical Center, Goshen, NY -- During the past year, the hospital has used Eclipsys' Sunrise Patient Financials(TM) to employ several process improvements and surpass a goal of reducing the average time to fully adjudicate a claim by 10 percent (nine days)--in fact, a 27 percent reduction was achieved. Since beginning the initiative, denial reduction has produced approximately $450,000 in additional revenues, emergency department upfront co-payment collections have doubled, and better management of carrier underpayments has recouped $3.3 million. Orange Regional Medical Center won an award in the process improvement (revenue cycle) category.

St. Joseph Health System, Orange, CA --The 14-hospital health system replaced its legacy decision support system with Eclipsys' Sunrise EPSi(TM) integrated performance management solution to standardize the costing process across all facilities to enable accurate cross comparisons. Within eight months, nine facilities implemented the decision support solution resulting in significantly more rapid system processing, report production and access to 'What-If' scenario analysis. What before took days to produce is now developed in minutes. St. Joseph Health System won an award in the process improvement (performance management) category.

Presbyterian Intercommunity Hospital (PIH), Whittier, CA--The community hospital set a goal to achieve 100 percent adoption rate with its "big bang" activation of Eclipsys' CPOE solution, Sunrise Acute Care. Strong physician and nursing leadership and a focus toward physician workflows helped to win over affiliated physicians and enabled PIH to take away all paper order forms on day one. The hospital has realized a 95 percent CPOE adoption rate within 3 months and continues to maintain that adoption rate. A 71 percent adoption rate has been sustained among all physicians (representing 400 medical staff members), with an 86 percent adoption rate among in-house physicians. The hospital has built 394 order sets to date. PIH won an award in the adoption category.

North Shore-Long Island Jewish Health System (NSLIJH), Great Neck, NY--Recognized as the third largest secular health system in the United States, NSLIJH fostered extraordinary collaboration on three levels to successfully transform paper processes into electronic systems and enable practice transformation and more patient-centered care. Working closely with its health information technology company partner, Eclipsys, NSLIJH implemented and optimized components of Eclipsys' Sunrise Clinical Manager solution. During the initiative, the health system established enterprise-wide collaboration to validate evidence base content and it achieved multi-disciplinary clinical collaboration to ensure real interdisciplinary workflow and universal knowledge of each patient and their clinical progress. Department handoffs have been improved with physicians, nurses, respiratory therapists, dietitians, social workers, case managers, and physical, occupational and speech language therapists, pastoral care, and child life specialists documenting side by side. NSLIJH won an award in the collaboration category.

The Urology Center, P.C., Omaha, NE--Administrator Laura Forehead of The Urology Center, P.C. was the first client to post on the Eclipsys PeakPractice(TM) ambulatory electronic health record (EHR) communities site when it was launched this past December. Eclipsys Communities is the company's online networking forum to facilitate client knowledge-sharing and collaboration. In addition, Ms. Forehead, or someone from her team, attended every single monthly "advise" session for the PeakPractice solution and arranged attendance and participation of other users. Her Eclipsys ClientConnect(TM) involvement also has supported Eclipsys' product development efforts and communications with clients. The Urology Center, P.C. (Ms. Forehead) won an award in the active participation in the Eclipsys ClientConnect program category.

About Eclipsys

Eclipsys is a leading provider of advanced integrated clinical, revenue cycle and performance management improvement software, clinical content and professional services that help healthcare organizations improve clinical, financial and operational outcomes. For more information, see www.eclipsys.com or email info@eclipsys.com.

Statements in this news release concerning the timing of implementation and features of and benefits provided by Eclipsys software, evidence-based content and implementation services are forward-looking statements and actual results may differ from those projected due to a variety of risks and uncertainties. Implementation and customization of Eclipsys software is complex and time-consuming. Results depend upon a variety of factors and can vary by client. Each client's circumstances are unique and may include unforeseen issues that make it more difficult than anticipated to implement or derive benefit from Eclipsys software or services. The success and timeliness of the company's services will depend at least in part upon client involvement, which can be difficult to control. Eclipsys is required to meet specified performance standards, and the contract can be terminated or its scope reduced under certain circumstances. More information about company risks is available in recent Form 10-Q and 10-K filings made by Eclipsys from time to time with the Securities and Exchange Commission. Special attention is directed to the portions of those documents entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." Eclipsys Corporation and The Outcomes Company are registered trademarks of Eclipsys Corporation. Sunrise Acute Care, Sunrise Patient Financials, Sunrise EPSi, Sunrise Clinical Manager, PeakPractice, Eclipsys Communities and Eclipsys ClientConnect are trademarks of Eclipsys Corporation. Other product and company names in this news release are trademarks and/or registered trademarks of their respective companies.

SOURCE: Eclipsys Corporation

Eclipsys Corporation 
Robin Wrinn, 404-847-5219 
Director, Public Relations (media) 
robin.wrinn@eclipsys.com 
or 
Jason Cigarran, 404-847-5965 
Vice President of Investor Relations (investors) 
jason.cigarran@eclipsys.com

The agreement calls for The Brooklyn Hospital Center to enhance and expand its use of Sunrise Acute Care(TM), Eclipsys' computerized physician order entry (CPOE) system, Sunrise Surgery(TM) (powered by Surgical Information Systems), along with implementation of Eclipsys' integrated pharmacy information system, the company's clinical documentation solution, Knowledge-Based Charting(TM) , and Sunrise Radiology(TM), Eclipsys' Web-based radiology management system. These solutions will serve as the clinical technology foundation to transform care delivery processes and support qualifying for ARRA stimulus dollars.

Because ARRA is expected to require healthcare organizations to significantly expand Centers for Medicare and Medicaid Services (CMS) Quality Measures reporting requirements by the years 2013 and 2015, The Brooklyn Hospital Center also has selected Eclipsys' Sunrise Clinical Analytics(TM) business intelligence tool. Part of what is slated to be Eclipsys' ARRA 2011 Certified EHR Technology, Sunrise Clinical Analytics intelligently extracts and transforms data at the right time from Eclipsys' Sunrise Clinical Manager(TM) EHR solution to automate quality reporting. To further meet key ARRA requirements for reporting and interoperability, a National Order Item Catalog (NORIC) platform will be deployed to accelerate the hospital's ability to incorporate evidence-based guidelines from a multitude of publishers and support health information exchange.

In a later phase, Sunrise Patient Portal(TM) will be activated to provide The Brooklyn Hospital Center patients with self-service functionality, such as Internet access to updated health information and to view scheduled doctor appointments. The solution integrates with HealthVault(TM), the Microsoft(R) consumer health platform.

"This initiative continues our commitment to provide quality healthcare services to the Brooklyn community," said Richard Becker, president and chief executive offer, The Brooklyn Hospital Center. "The passage of ARRA is a momentous opportunity to maximize our ability to invest in enabling technologies, which are fundamental to improving costs and care effectiveness. We selected Eclipsys because we have enjoyed a positive working relationship with them, and they are a company unmatched in helping clients achieve deep adoption of technology. We expect Eclipsys to fully support us in satisfying what we expect to be the meaningful use requirements of ARRA."

Professional Services for Accelerated Implementation and Enhanced System Functionality

The Brooklyn Hospital Center has opted to utilize Eclipsys' accelerated "speed to value" implementation approach, along with the Eclipsys Remote Hosting Services(TM) and information technology (IT) outsourcing services in an effort to support an implementation timeline that optimizes ARRA stimulus opportunities. Eclipsys' proven, repeatable implementation method is based on hundreds of successful on-time, on-budget implementations and decades of experience with a broad range of hospital and health systems. The remote hosting solution will offload storage and processing for the new IT infrastructure, while the IT outsourcing services will augment internal hospital IT staff and leverage Eclipsys' deep solution knowledge and proven implementation methodologies.

"The passage of ARRA is unprecedented in enabling providers to build out their technology foundation in support of improved health outcomes and to expedite the removal of inefficiency and costs from the nation's healthcare delivery system," said Jay Deady, Eclipsys executive vice president of Client Solutions. "We are pleased The Brooklyn Hospital Center has shown its continued confidence and satisfaction with Eclipsys in helping it achieve its ARRA and clinical quality goals."

The Eclipsys solutions will be remotely hosted by the ISO 9001:2000-certified Eclipsys Technology Solutions Center in Mountain Lakes, NJ.

About The Brooklyn Hospital Center

Founded as the borough's first voluntary hospital, The Brooklyn Hospital Center (TBHC) has been keeping Brooklyn healthy since 1845. Today, it is a 367-bed teaching hospital, offering primary and specialized medical care, sophisticated diagnostic and therapeutic services, cutting-edge technology, and specialized surgery to nearly 300,000 patients annually. Located in the heart of Brooklyn's downtown revitalization district, TBHC is a member of the New York-Presbyterian Healthcare System and a Brooklyn academic and clinical affiliate of Weill Cornell Medical College. TBHC has fully accredited, independent residency programs in Emergency Medicine, Internal Medicine, General Surgery, Obstetrics and Gynecology, Pediatrics, Family Practice, General Dentistry and Oral and Maxillofacial Surgery, and trains more than 250 physicians each year. For more information, see www.tbh.org.

About Surgical Information Systems

Surgical Information Systems (SIS) provides software solutions that are uniquely designed to add value at every point of the perioperative process. Developed specifically for the complex surgical environment, all SIS solutions -- including anesthesia -- are architected on a single database and integrate easily with other hospital systems. SIS offers the only surgical scheduling system endorsed by the American Hospital Association (AHA), and a rules-based charging system that has been granted Peer Reviewed status by the Healthcare Financial Management Association (HFMA). For more information, see, www.SISFirst.com.

About Eclipsys

Eclipsys is a leading provider of advanced integrated clinical, revenue cycle and performance management software, clinical content and professional services that help healthcare organizations improve clinical, financial and operational outcomes. For more information, see www.eclipsys.com or email info@eclipsys.com.

Statements in this news release concerning the timing of implementation and features and benefits provided by Eclipsys software, evidence-based content and implementation and remote hosting services are forward-looking statements and actual results may differ from those projected due to a variety of risks and uncertainties. Implementation and customization of Eclipsys software is complex and time-consuming. Results depend upon a variety of factors and can vary by client. Each client's circumstances are unique and may include unforeseen issues that make it more difficult than anticipated to implement or derive benefit from Eclipsys software or services. The success and timeliness of the company's services will depend at least in part upon client involvement, which can be difficult to control. Eclipsys is required to meet specified performance standards, and the contract can be terminated or its scope reduced under certain circumstances. More information about company risks is available in recent Form 10-Q and 10-K filings made by Eclipsys from time to time with the Securities and Exchange Commission. Special attention is directed to the portions of those documents entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." Eclipsys Corporation and The Outcomes Company are registered trademarks of Eclipsys Corporation. Sunrise Enterprise, Sunrise Acute Care, Sunrise Surgery, Knowledge-Based Charting, Sunrise Radiology, Sunrise Clinical Analytics, Sunrise Clinical Manager, Sunrise Patient Portal and Eclipsys Remote Hosting Services are trademarks of Eclipsys Corporation. Other product and company names in this news release are or may be trademarks and/or registered trademarks of their respective companies.

SOURCE: Eclipsys Corporation

Eclipsys Corporation 
Media: 
Robin Wrinn, 404-847-5219 
Director, Public Relations 
robin.wrinn@eclipsys.com 
or 
Jason Cigarran, 404-847-5965 
Vice President, Investor Relations 
jason.cigarran@eclipsys.com

In conducting a competitive analysis study of CMS Core Measures performance, data identified Eclipsys clients as ranking No. 1 in composite performance across all CMS Quality Measures. The study, which was based on publicly available data from HIMSS Analytics and the U.S. Department of Health and Human Services Hospital Compare site, also identified that Eclipsys clients ranked No. 1 in adherence to surgery CMS criteria, while statistically tying in adherence to heart failure, acute myocardial infarction (AMI) and pneumonia.

According to Jay Deady, Eclipsys executive vice president of Client Solutions, Eclipsys clients' superior quality outcomes are a factor of the advanced clinical decision support and embedded complex algorithms built into the company's CPOE solution, which leverage more than 30 years of experience to transcend fundamental computerized order entry. "Proactive, advanced clinical decision support is going to be a critical success factor in meeting ARRA 'meaningful use' requirements," said Deady. "The fact that our client base today is comprised of higher-performing organizations is a clear demonstration of what sets apart Eclipsys in helping healthcare organizations improve patient health status and outcomes, the fundamental goal behind this government act. With hundreds of healthcare organizations seeking a new clinical information system platform, we expect our proven track record and strong positioning to support us in achieving expanded market share."

Industry CPOE Adoption Leadership

A key provision of ARRA is that healthcare organizations must drive the use of information technology to improve patient health status -- not just demonstrate its existence or specific functionality. According to the KLAS CPOE Digest 2009: Meaningful Use and Physician Adoption report, deep adoption is pivotal to the overarching success of an electronic medical record (EMR) implementation. The same KLAS report concludes that Eclipsys leads the industry in total physicians live on CPOE and percentage of its client base using the system. Eclipsys also continues to have the highest physician satisfaction from clients who use its system, and on average, highly customizable ordering capabilities allow a physician to order faster than any other CPOE solution on the market.

In addition, Eclipsys' clinical information systems dominate the field of Magnet Recognition Program(R) hospitals. Magnet status provides consumers with a benchmark to measure the quality of care they can expect to receive. Eclipsys clients represent 45 percent of all organizations receiving Magnet status, and represent 40 percent of the organizations listed as "America's Best Hospitals," according to the U.S. News & World Report's 2009 ranking.

ARRA Requirement to Use Clinical Data in More Meaningful Ways

Along with the existing rise in pay-for-performance and changes in reimbursements, ARRA is expected to require healthcare organizations to use patient data to drive insight and intelligence about how systems and practice patterns are affecting care quality and outcomes. With the addition of the Sunrise Clinical Analytics(TM) business intelligence solution to what is slated to be Eclipsys' ARRA 2011 Certified EHR (electronic health record) Technology, Eclipsys plans to offer hospitals unparalleled capabilities to meet increasingly complex quality reporting requirements. Sunrise Clinical Analytics intelligently extracts and transforms data at the right time from Eclipsys' Sunrise Clinical Manager(TM) electronic health record solution to automate quality reporting. Ease of access to information is delivered without disruption to clinical workflows. The analytics system is designed to support organizations in effectively tracking and measuring clinical performance and identifying how clinician adoption impacts patient outcomes and clinical costs.

"We believe no other health information technology company can match our proven record of deep clinical adoption, our system agility to respond to changing environments and requirements and an unparalleled integrated clinical analytics solution," added Deady. "Providers seeking to prepare for the implications of this momentous legislation should have confidence in selecting Eclipsys as their clinical technology partner."

Eclipsys' CPOE high adoption rates and speed are a factor of its embedded complex algorithms that leverage more than 30 years of experience to transcend fundamental order entry and offer a solution that is able to automatically interpret and recalculate new order protocols in real time based on any updates to the patient condition. The intuitive, easy-to-adopt solution offers highly complex clinical decision support capabilities that provide workflows tailored to how physician's practice medicine and support fully automating even the most complex order sets and medication ordering, including the exacting protocols, long-range medication schedules and complicated treatment plans commonplace in oncology and pediatric care environments.

About the Magnet Recognition Program

The Magnet Recognition Program(R) was developed by the American Nurses Credentialing Center (ANNC) to recognize healthcare organizations that provide nursing excellence. The program also provides a vehicle for disseminating successful nursing practices and strategies. Recognizing quality patient care, nursing excellence and innovations in professional nursing practice, the Magnet Recognition Program provides consumers with the ultimate benchmark to measure the quality of care that they can expect to receive. For more information, go to www.nursingcredentialing.com.

About the Eclipsys Competitive Analysis Study and Hospital Compare Web site

Organizations for each vendor were identified from an HIMSS Analytics query. Hospitals with less than 100 beds were excluded from the analysis since recent reports suggest that organizations with a small bed base can score well mainly based on the lower volume of cases. The Hospital Compare Web site was used to cross-reference hospital CMS criteria performance. The Hospital Compare Web site was created through the efforts of the Centers for Medicare & Medicaid Services (CMS), the U.S. Department of Health and Human Services, and other members of the Hospital Quality Alliance: Improving Care Through Information (HQA). The information on this website comes from hospitals that have agreed to submit quality information for Hospital Compare to make public. For more information, go to www.hospitalcompare.hhs.gov.

About the KLAS CPOE Digest 2009

The KLAS CPOE Digest 2009 compiled data from healthcare executives, managers and clinicians. The study provided detailed information on several criteria including current CPOE usage at healthcare organizations, product capabilities and vendor performance.

About KLAS

KLAS is a research firm specializing in monitoring and reporting the performance of healthcare vendors. KLAS' mission is to improve delivery, by independently measuring vendor performance for the benefit of our healthcare provider partners, consultants, investors, and vendors. Working together with executives from over 4500 hospitals and over 2500 clinics, KLAS delivers timely reports, trends, and statistics, which provide a solid overview of vendor performance in the industry. KLAS measures performance of software, professional services, and medical equipment vendors. For more information, go to www.KLASresearch.com, email marketing@KLASresearch.com, or call 1-800-920-4109 to speak with a KLAS representative.

About Eclipsys

Eclipsys is a leading provider of advanced integrated clinical, revenue cycle and performance management software, clinical content and professional services that help healthcare organizations improve clinical, financial and operational outcomes. For more information, see www.eclipsys.com or email info@eclipsys.com.

Statements in this news release concerning the timing of implementation and features of and benefits provided by Eclipsys software and implementation services are forward-looking statements and actual results may differ from those projected due to a variety of risks and uncertainties. Implementation and customization of Eclipsys software is complex and time-consuming. Results depend upon a variety of factors and can vary by client. Each client's circumstances are unique and may include unforeseen issues that make it more difficult than anticipated to implement or derive benefit from Eclipsys software or services. The success and timeliness of the company's services will depend at least in part upon client involvement, which can be difficult to control. Eclipsys is required to meet specified performance standards, and the contract can be terminated or its scope reduced under certain circumstances. More information about company risks is available in recent Form 10-Q and 10-K filings made by Eclipsys from time to time with the Securities and Exchange Commission. Special attention is directed to the portions of those documents entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." Eclipsys Corporation and The Outcomes Company are registered trademarks of Eclipsys Corporation. Sunrise Clinical Analytics and Sunrise Clinical Manager are trademarks of Eclipsys Corporation. Other product and company names in this news release are trademarks and/or registered trademarks of their respective companies.

SOURCE: Eclipsys Corporation

Eclipsys Corporation 
Robin Wrinn, 404-847-5219 
Director, Public Relations (media) 
robin.wrinn@eclipsys.com 
or 
Jason Cigarran, 404-847-5965 
Vice President, Investor Relations 
jason.cigarran@eclipsys.com