P R E L I M I N A R Y  T R A N S C R I P T

MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings
Conference Call

Event Date/Time: Apr. 07. 2010 / 8:30PM GMT

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

62



T R A N S C R I P T

Unknown Speaker*

Please stand by for real-time transcript.

Unknown Speaker*

Good afternoon.

My name is Amanda.

I would like to welcome everyone to the Allscripts third quarter 2010 earnings conference call.

All lines have been placed on mute to prevent any background noise.

After the speakers' remarks there will be a question-and-answer session.

If you would like to ask a question during this time simply press star 1 on your telephone keypad.

If you would like to withdraw your question press the pound key.

Thank you, and I will now turn the conference call over to Mr. Scott frank.

Unknown Speaker*

hi, this is actually Glen Tullman.

Thanks, Amanda.

Good afternoon and welcome to the Allscripts fiscal 2010 third quarter conference call.

This is Glen Tullman.

I'm the chief executive officer of Allscripts.

And joining me on the call today will be Bill Davis, our chief financial officer, Lee Shapiro, who is president of Allscripts, and Seth
Frank, vice president of Investor Relations.

Today what we want to do is cover our performance for the third quarter, our view of the market, a business update, and then
I'm going to ask Bill Davis to review our financial highlights from the third quarter and provide an update on our guidance for
the remainder of fiscal 2010. We, of course, will also leave time for your questions, but let's go ahead and begin, and I'm going
to ask Seth frank to read our safe harbor statement.

Unknown Speaker*

This presentation will contain forward-looking statements within the meaning of the federal securities laws, statements regarding
future events, developments, the company's future performance, as well as management's expectations, beliefs, intent, intentions,
plans, estimates, or projections relating to the future are forward-looking statements within the meaning of these laws.

1

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

63



These forward-looking statements are subject to a number of risks and uncertainties, including the volume and timing of system
sales and installations, the implementation and speed of acceptance of the electronic health provisions of the American recovery
and reinvestment act of 2009, and other factors outlined from time to time in our reports filed with the Securities and Exchange
Commission to which you should refer, including our 2009 annual report on Form 10-K, available through the web site, maintained
by the Securities and Exchange Commission at www.sec.gov.

The company undertakes no obligation to update publicly any forward-looking statement, whether as a result of new information,
future events, or otherwise.

Unknown Speaker*

Thanks, Seth.

Our third quarter results were very strong across the board.

I'm pleased about where we are today in our position to capitalize on the market going forward, and I couldn't be more proud
of the performance of our entire organization.

We delivered across every metric we measure.

Bookings for the third quarter were 105.5 million, up 25% year-over-year and a new sales record for the company.

This result is in sync with the increasing demand we have described to you on previous quarterly calls.

Total non-GAAP revenues were 180.4 million.

A testament to our growing ability to implement Abe more rapid and higher quality way, and it is worth noting that approximately
63% of those revenues were recurring in nature.

Non-GAAP earnings for the quarter total 25.6 million, which equates to about $0.17 per share, demonstrating as Bill Davis will
describe later in this call our ability to invest while at the same time operating efficiently and profitably.

Overall, a great quarter for Allscripts.

While I'm very pleased with our continuing progress, our growth in bookings, revenue, and operating profit in our business,
I'm even more excited about the results we are delivering for our clients.

In a market where meaningful use is now the measure, leadership will be defined by whether or not physicians and other
caregivers are actually using the electronic health record.

This is where we believe Allscripts leads the market today and will continue to lead.

We have more physicians live on an electronic health record than any other ambulatory EHR company.

And our clients are saying that utilization of our solutions has become central to their ability to deliver high-quality healthcare
services every day.

If you want to hear from our clients directly, go to www.allscripts.

2

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

64



com/go to see over 100 examples of how our clients are using our solutions to improve the quality of care they deliver and
better manage costs, yielding a very significant return on investment for their organizations.

This is what we call best demonstrated practices.

It's not theoretical any longer.

It's real, and our clients are telling the story for us. Our leadership was also on display at the largest trade show in healthcare IT
that took place in Atlanta early last month.

28,000 CIOs, physicians, practice managers, and other healthcare professionals attended.

We were excited by the attention we received at HEMS, in fact we read in reports published after the conference and heard
from many of you on the call today that Allscripts and the Allscripts booth was the busiest on the exhibition floor.

More important, it was the most successful in our history, and we exceeded our performance goals for meetings, demo s, booth
visits, and event attendance.

I would like to acknowledge one of our blue chip clients, Bill spooner, chief information officer of sharp healthcare in San Diego.

Bill was named CIO of the year and on the day of the awards ceremony, he shared the story of sharps recent upgrade to version
11 of our enterprise electronic health record, including a big bang implementation of the orders module for over 400 physicians
and 2,000 total users.

Sharps physicians and staff are now placing 100% of their lab, radiology, and cardiology orders electronically using our electronic
health record.

A really great example of meaningful use and also what can be accomplished by world-class healthcare organization with strong
leadership and a commitment to success.

Speaking of meaningful use, let me say word about the markets and where we are.

As Bill Davis and I have conveyed, we continue to expect that each quarter will be better than the last in terms of interest in and
demand for our solutions.

We believe checks from the Federal Government to physicians, which begin arriving in 2011l compel even more participation
in the program, and we'll be ready fort with our certified products, marketing, our direct sales engine, a well trained channel,
and scaled up deployment capacity.

Each step adds more comfort and certainty to more potential buyers.

For example, the final rules for both meaningful use and certification, along with a list of organizations designed or designated
to certify electronic health recordsl be finalized in the May-June time frame.

Physician groups have now begun to change their focus from meaningful use to finding the best long-term partner.

And it increasingly means Allscripts.

There are several reasons for this.

3

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

65



First, our client footprint, which serves as both a competitive advantage, demonstrating the quality of our solutions, as well as
an example of how we successfully deploy our solutions.

It also provides a great source of client references.

Second, the Allscripts stimulus program, which includes a no payments for six months finance package that bridges the need
for out of pocket expenditures until the government incentives kick in. And third, our Allscripts stimulus guarantee that our
products will meet certification criteria.

The bottom line, physicians assume top companies will be certified, and now they're looking for partners.

As you can see from our booking results, our sales engine is delivering exceptional performance through direct sales and through
distribution channels.

We have had excellent success in our core market of large hospitals and health systems, many of whom are leveraging the stark
law relaxation, plus the catalyst of stimulus dollars to strengthen relationships with their affiliated physicians in their communities.

One example is hospital sisters health system in Illinois.

Hospital sisters selected our enterprise electronic health record and practice management solutions for their 130 employed
physicians.

And they are also offering our integrated solution to more than 3,300 independent physicians affiliated with their 13 hospitals.

We also continue to leverage our client relationships and the breath of our full solution as we cross-sell to health system clients.

For example, we announced in early February a new agreement with new health, a 1200-bed Long Island, New York hospital
system that had been a user of our care management product.

Now, in an agreement valued at over $5 million, new health will deploy our enterprise EHR and practice management solution
to their 85 specialty clinics, along with our emergency department information system for Nassau university medical center.

This relationship bridges the GAAP between inpatient and outpatient care.

Today we announced another example of the appeal of our full solution suite.

Park view health system in Indiana.

Park view, in a multimillion dollar agreement, selected enterprise EHR and practice management for 170 of their employed
physicians with an additional 280 licenses for their affiliated physicians and for future growth.

And park view will deploy our emergency department information system in six hospitals.

Park view is also an example of cross sales into our base of legacy Misys practice management clients.

We're also seeing acceleration in the adoption of electronic health records among small and mid-size physician practices.

In the third quarter we saw solid increases in my way deployments as well as a major upparticular in sales of Allscripts professional
EHR.

4

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

66



We are pleased with our brand recognition in this segment.

In fact, a recent survey of small and mid-size physician practices found that Allscripts is "clearly dominating.

" According to the survey, which was published in February, an Allscripts product is number one on the list relative to practices
that are evaluating new EHR systems as well as new practice management systems. The mind share factor with clinicians is a
major component of our success today and will pay dividends in the future.

In terms of execution, we have a number of competitive advantages, beginning with the fact that over 100,000 providers
practices in groups of less than 10 physicians, already have our practice management system installed and working.

In the time of stimulus, practices want the fastest way to get the stimulus dollars with the least amount of change and risk,
ripping thoughts' working practice management system is simply a non stweart most of our base when presented with the
simple option of upgrading to an Allscripts electronic health record.

Another advantage is our Allscripts distribution network, comprised of 800 plus experienced sales executives from major partners
including Henry Schein and cardinal health, two of the largest and most respected distributors in the company, along with
smaller but highly respected operations like E trends media, and the balance of the 50 or more distributors working with us
nationally.

This capability and coverage will be critical as the market heats up. When we talk about seeding the market, I always like to
mention our electronic prescribing capabilities.

I think of this as the on-ramp to the electronic healthcare highway and specifically to electronic health records.

Allscripts recently surpassed the 100,000 user mark for our stand-alone Allscripts E prescribe sliewrks and we are on a path to
eclipse 100 million prescriptions written by physicians using our software.

E-prescribing utilization is an important measure of meaningful use, and these numbers confirm that Allscripts continues to be
the most utilized EHR on the market today.

These physicians also present an up-sell opportunity to our electronic health record.

And finally, our health solutions business continues to perform exceptionally well with high recurring revenue delivered through
our solutions.

Client wins in the third quarter include Carolinas health system with 29 hospitals who selected our care management solution.

Carolinas, by the way, owns am-net health which selected our enterprise EHR for their 60 employed physicians and another 40
affiliated physicians.

Another new client win is E M H regional healthcare in Ohio, who purchased our emergency department solution for two
hospitals and one urgent care center.

What you see are more systems buying into our concept of a connected system of health and the advantage of having a
comprehensive suite of solutions to sell to these clients.

Turning to operations, we remain laser focused on ensuring we're ready to take full advantage of the market opportunity.

We're doing this in two ways.

5

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

67



First, by bringing on exceptional talent, and second with systems and processes designed to scale.

On the talent side, I want to welcome Richard sills, who joined our team from computer associates where he led a deployment
team of over 2,000 individuals.

We continue to add top notch talent to what a recent research report referred to as an industrial strength management team.

So people are one component, and processes designed the scale are another.

Our upgrade enablement crane story a critical success accelerator.

U AC, as we call it, price quick migration path for our legacy Misys E MR users.

This four to six-week process lets clients protect their investment in software while moving to our professional electronic health
record.

Several hundred client organizations have already signed up for U E C services, and we expect that number to continue to grow.

We are planning to extend our U E C platform to upgrade Allscripts clients on all of our legacy EHR systems to ensure clients
will be stimulus ready.

And we continue to innovate with programs in response to key government initiatives.

For example, our public sector team is engaging with the new regional extension centers, our RECs, all 60 of which have now
been named as of yesterday.

These organizations were created by aura to help primary-care physicians in small practices select and implement electronic
health records.

Our RECs team's sole focus is to ensure that Allscripts is one of the primary EHR providers endorsed by these regional extension
centers.

While it eats early in the process we're very encouraged by the progress our team is making.

So, to sum it up this greats quarter for Allscripts across the board.

I'm very proud of our performance, and I feel confident it that we are strongly positioned as a leader in the healthcare IT industry,
and that we'll continue to capitalize on an ebbs spansive market opportunity in our space.

Now let me ask Bill Davis to provide with you the details of the financial aspects of this quarter.

Bill.

Unknown Speaker*

Thanks, Glen, and good afternoon, everyone.

I will briefly highlight our financial results for the third fiscal quarter, and then we'll discuss our outlook for the balance of our
year.

6

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

68



Before we begin, I would direct you to the non-GAAP results and reconciliation table and explanation included in our press
release to assist in evaluating financially comparable periods and adjustments to reconcile GAAP and non-GAAP financial metrics.

In addition, we have made available supplemental financial data that includes previously reported financial information on a
quarterly basis, including GAAP and non-GAAP information.

The supplemental data sheet and our press release can be found on our website at investor.allscripts.com.

Allscripts reported a very strong financial results this quarter from every perspective, including record bookings, revenue,
operating margin, earnings per share, as well as cash flow.

Bookings were strong, totaling 105.5 million in the quarter representing a 25% growth rate when compared to the third quarter
a year ago.

Please note that Allscripts reported bookings conforms to our established definition of bookings which does not include
transaction fees.

For those of you who follow Misys PLP they do booking fees in their definition.

If you were to include such transaction fees would you had a approximately 35.4 million to our quarter's reported bookings, for
a total of 140.9 million.

As Glen discussede our Q3 bookings were strong across our entire solution portfolio, and we had exceptionally strong sales of
new enterprise EHR deals as many of the community -- many of which were the community variety that we have discussed on
this call and in prior press releases.

We have also had excellent traction in our -- both our professional EHR and my way EHR offerings.

In fact, this was our strongest quarter for professional EHR this year, which is sold principally to small physician practices.

I also note that the competitive advantage of our sales footprint through both our direct around partner channels with strong
focus on end user adoption contributed to our strong results in the quarter.

Our health solutions group business, which includes our emergency department, care management, and discharge management
solutions also produced very strong results.

On a year-to-date basis, our bookings are up 28% versus the first nine months of fiscal 2009, illustrating strong results that reflect
the rising tide environment we are witnessing combined with Allscripts formidable position in the marketplace.

In terms of bookings mix, approximately 22.9 million, or 22% of our third quarter bookings relate to software service, or S.A.S.

transaction these will be recognized as revenue over approximately the next 48 months.

This dollar amount is essential flat versus Q2 of this year.

Please keep in mind that this quarter's -- that our quarter's strength in enterprise and professional EHR sales were principally
licensed transactions.

Therefore, lowering the S.A.S.

7

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

69



mix slightly.

Year to date, S.A.S.

book grew to 70.2 million, or about 24% of bookings for the first nine months of fiscal 2010. Our view remains that up to one-third
of our bookings within the next few years could result from S.A.S.

deals, especially as we see a larger mix of bookings from smaller practices that will favor a S.A.S.

-based model for purchasing an EHR.

Turning to backlog, we ended the quarter with approximately 747 million in reported backlog.

Our backlog is an important barometer and positive indicator of our quarterly visibility.

Approximately 74% of our backlog this quarter consists of future revenue from reoccurring sources which include maintenance,
our S.A.S.

contracts, as well as transaction fees.

Backlog totals for the third quarter are as follows.

Approximately 194 million of clinical software and related services fees.

Approximately 163 million of subscription and S.A.S.

fees.

246 million of annual maintenance fees that are expected to be recognized over the next 12 months, and finally, approximately
144 million of transaction fees which principally consist of EDI transaction fees and, again, are also expected to be recognized
over the next several months.

Looking at our income statement revenue in the quarter was 170.9 million and 180.4 million on a non-GAAP basis.

Allscripts' revenue growth accelerated significantly in the third quarter as non-GAAP revenue grew 16% strerses prior year
period.

A 6% sequential growth when compared to the second quarter.

A stand-out for us this quarter was system sales, or revenues, rather, which grew nearly 16% year-over-year, a powerful testimony
to our success by offering a leading portfolio of innovative solutions to every segment of the market.

We shipped significant quantities of software and hardware in the third quarter.

System revenues also benefited from several of our large intrer prize engagements, making good progress with their
implementations, which, as you know, drive systems revenue given we recognize such revenue on a percentage of completion
basis.

As a result of the strength of our sales in the -- I'm sorry, revenue in the quarter, Allscripts reoccurring revenue was approximately
63% in the quarter, versus 67% in the second quarter as we added new licensed clients to our installed base.

8

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

70



Regarding our professional services, revenue grew year-over-year, but declined sequentially due to -- due large toll expected
seasonally lower utilization which is typically incurred during the months of December and in early January.

As you know, there are fewer days to implement and train during the holidays as well as a typically higher level of paid time off
of our implementation resources.

As a result, utilization and therefore gross margin, declined somewhat in the quarter versus Q2. It is worth noting the swing to
positive gross margins of 13% in the third quarter versus negative margins a year ago.

Illustrating improvement in overall service execution.

We anticipate a seasonal rebound in services revenue and margin.

Further out, we anticipate that the operationsal initiatives Glen discussed, including ready, the upgrade enablement center,
and enhancements to our training, plus product innovations that improve have the speed of deploymentl benefit us here as
industry demand continues to accelerate.

Turning to our reoccurring revenue streams, maintenance grew -- revenue grew approximately 11% year-over-year reflecting
price adjustments the long-term maintenance agreements and growth in our installed base of clients.

Transactions and other revenue which consists of revenues from our payer path revenue cycle management as well as transaction
processing business, plus e-prescribing and S.A.S.

revenue grew approximately 7%, reflecting growth in volumes and a steady increase in our reoccurring S.A.S.

client base.

While we were pleased with the up tick in system sales in the quarter, please keep in mind that our long-term revenue model
contemplates that our overall revenue growth will reflect an increasing mix of S.A.S.

transaction from smaller practices on a subscription basis and enterprise revenue from larger physician practices, both of which
take longer to convert into revenue.

Looking now at margins and expensese non-GAAP gross margin percentage for the third quarter was 56.6%, down slightly
from Q2 but up 200 basis points year he over year.

The.

The year-over-year improvement in non-GAAP gross margin is largely due to the improvement in our professional service
operations as well as higher mix of licensed sales in the quarter.

Overall, we continue to expect gross margins to track in the mid-50s range for the immediate future, and we will likely see some
level of fluctuation quarter to quarter, depending on our revenue mix.

GAAP operating expenses were 69.8 million for the quarter.

Non-GAAP operating expenses before stock-based compensation of 4.3 million in deal related amortization that is classified in
our operating expenses of 2.5 million was approximately 62.9 million in total, up slightly compared to 60.5 million in the second
quarter.

9

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

71



Most of the sequential increase in operating expenses was due to the planned R&D expenditures as we discussed with you last
quarter.

Our gross R&D expenditures year to date including new product development is over 56 million before software capitalization,
putting us on target for our anticipated 70 million in R&D investment for fiscal 2010. Operating margins on a GAAP basis were
approximately 17.7%.

On a non-GAAP basis operating margins were approximately 21.1% which excludes total deal-related amortization of 5.6 million,
of which 3.1 million is included in our cost of sales.

This compares favorably with second quarter non-GAAP operating margins of approximately 20.6%, an increase of 50 basis
points.

Capitalized software was approximately 4.9 million in the third quarter bringing our year to date total to 13.4 million, or
approximately 24% of our year to date total R&D spend.

Our capitalized software expense will continue to fluctuate somewhat on a quarter to quarter basis, based on our product
development schedule.

We believe these investments and innovation will continue to play N an -- will continue to pay important dividends as stimulus
approaches, wining the gap between Allscripts and our competition, maximizing the significant growth opportunity by making
sure our clients are indeed stimulus ready.

Our GAAP tax rate in the quarter was approximately 41%, an increase from the 40% rate we recorded in the second quarter.

We continue to anticipate a full-year tax rate of approximately 39% and have used this rate for non-GAAP purposes.

The anticipated reduction in our effective tax rate will largely be driven by the completion of our research and development
tax credit study in the fourth quarter.

GAAP net income for the quarter was 18.5 million.

After adjustments, non-GAAP net income was 25.6 million compared to 21.7 million in the third quarter of last year, or representing
18% growth.

On a per share basis, diluted earnings were $0.12 per share on a reported basis and $0.17 on a non-GAAP basis.

EPS on a non-GAAP basis grew 21% year-over-year.

Allscripts ended the quarter with 117.7 million in cash and marketable securities, a net increase of 27.2 million from 90.5 million
in the second quarter.

Cash flow from operations was the strongest in corporate history, 46.5 million in the third quarter.

We reduced our long-term debt by 10 million.

Please note the balance of the 14 million was, in fact, paid off in March.

As we indicated in our second quarter call, accounts receivables increased 24 million to 179 million versus the second quarter.

10

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

72



Thin crease is due to our annual maintenance billing that occurred in late January and early February and is offset by a
corresponding increase in our deferred revenue.

Such maintenance billings will be recognized into revenue over the course of calendar 2010. As a result, our DSO increased to
91 days from # 3 days, and will return to historical levels starting in the fourth quarter.

Finally, we ended the quarter with approximately 2,358 employees, which compares to 2,307 at the end of the second quarter,
as we he added additional staff to R&D, support, as well as sales.

In summary, as we enter the early part of our fourth quarter we are very excited about our accomplishments for the third quarter
and the nine-month period.

This is particularly notable as we continue to invest near term for our future growth which we expect will be significant and
which will play out over the next several years as the federal stimulus program moved the majority vftion tees adopt EHR
technology.

We believe that as demand rises, we he will B well positioned to realize the full benefit of our footprint for clients, employees,
as well as our shareholders.

Before I turn to guidance, I do want to refamily size several key messages.

First, we expect to see a continuing steady increase in demand for electronic health records and related technology, with
acceleration in buying by smaller physician groups more notable at the vend calendar 2010. Smaller physician groups constitute
at least half of the practicing physicians in this country which means that we anticipate higher deal volumes and smaller values
per deal as buying patterns shift.

As I mentioned earlier, as part of this shift, we expect to see an increasing mix of S.A.S.

bookings and subsequent revenue which will also impact our revenue trajectory as we derive higher visibility and a longer
reoccurring revenue stream while experiencing more balanced short-term top-line growth.

Finally, our high mix of reoccurring revenue approximately 63% of which is derived from maintenance revenue, S.A.S.

agreements and our transaction business together should continue to yield an overall mid to high single-digit organic growth
rate.

So turning to guidance, with regard to revenue, we are raising our anticipated revenue for fiscal 2010 to a range of 700 to 705
million.

Our prior guidance for fiscal 2010 for revenue was a range of 680 to 700 million.

Finally, in addition, we are also raising our net income guidance to approximately 67 to 68.5 million, which equates to an EPS
range of 44 to $0.45 per diluted share, and non-GAAP net income expectations to range of approximately 97 to 9 # .5 million
which equates to an P S range of 64 to 65 cents per diluted share.

Our non-GAAP net income guidance contemplates approximately 22. # million of acquisition-related amortization, approximately
16.5 million of stock-based compensation, 4 pi 9 million of deferred revenue, approximately 5.3 million of transaction-related
expenses which were incurred through the first nine months, all on a pretax basis.

For purposes of calculating the after-tax impact we are assuming a corporate rated, as we have in prior quarters of, 39%.

11

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

73



We also anticipate a share count for the year of approximately 150 million shares.

Finally, while we do not typically provide bookings guidance, I thought it was important to note that our revised revenue and
profit guidance anticipates at least 105 million in fourth quarter bookings.

With that beg said, twheabl there is sufficient momentum in the marketplace that could result in bookings being as high as 112
for the quarter.

So with that, way like to turn the call back over to Glen Tullman for some closing remarks.

Unknown Speaker*

thanks, Bill.

Great news.

We continue to believe that we're at that time beginning of one of the fastest transformations of an industry in the history of
the United States, and Allscripts is well positioned to capitalize on this opportunity.

We often tell clients the time is now, and this has never been more true.

Not just for clients, but also for investors looking to capitalize on this industry transformation.

I want to conclude today's call by thanking all of you for your interest in Allscripts and for taking the time to join us today, by
also thanking our employees for delivering a great quarter, and thanking our clients who allow us to be their partner in our
Qwest to transform healthcare.

We'll now turn the call back over to the operator to take your questions.

Thanks very much.

Operator.

Unknown Speaker*

At this time, I would like to remind everyone in order to ask a question please press star 1 on your telephone keypad.

Also, please do limit yourselves to one question and one follow-up.

Your first question comes from Corey Tobin.

Unknown Speaker*

Congrats on the nice quarter.

Unknown Speaker*

Thanks, Cory.

12

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

74



Unknown Speaker*

a little more details, if we could, on the breakdown of bookings.

Is there any color on the split between inpatient or outpatient bookings or perhaps for the ambulatory piece what's the split
between clinical versus practice management systems, or anything else along those lines would be very helpful.

Unknown Speaker*

Cory, we don't provide a whole lot of detail beyond the total.

I think I have historically talked about the health system sealts contributing order of magnitude of kind of 20 to 25% of our total
bookings.

I would suggest to that you third quarter we didn't see a material change in terms of that mix.

As I mentioned, beyond that within the ambulatory space, we were very pleased with our bookings performance across the
entire spectrum.

All of our products and resultant channels did very, very well so we're very believed the high end, middle, and the low end.

I would comment on the practice management.

There, too, we're also encouraged by the attach rate in terms of practice management sales, most notably in the mid market
to low end of market, but from a mix perspective, we didn't see any material shift, just in terms of what that was on the PM side.

Unknown Speaker*

okay, great.

One other one, if could I. Glen, following up on your comments regarding the end market momentume is it it safe to say, Aussie
tend market building, can we translate your comment into one that we should see sequential increase in bookings each quarter
going forward, or should we more just think about momentum in the end market and bookings still could be volatile?

Unknown Speaker*

I think Bill and I have been consistent, Cory, in saying that we he see the demand -- the interest in and demand for our products
continuing to accelerate each quarter.

So we don't see that being vol still in any way.

We see a continued increase in demand.

I think that was reflected in Bill's guidance to the market where he said that while we expected slightly lower number, we're
comfortable with giving a higher range on that bookings number, based on what we're seeing, strength in hems, strength in
buying signals and the like.

We continue to see this steady up tick in the market quarter by quarter and we've been consistent in saying that.

13

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

75



Unknown Speaker*

Corey, the the only call-out I would make in terms of sequential die ma'am six the contribution from the enterprise side of
continues.

As we have said in many quarters in the past, predicting some of those enterprise deals to a specific quarter given their order
of magnitude, some of those deals beg in the range of $5 to 10 million, they do, in fact, introduce some level of variability from
quarter to quarter.

But the baseline demand could not agree more with the comments that Glen made.

We clearly feel we're in a rising demand environment but I just would caution you in the context of some of the enterprise
contribution on that score.

Unknown Speaker*

And to potentially safe the obvious, safe to assume that could extend well into 2011?

Unknown Speaker*

Again, the only call-out there, and I tried to highlight it in my script is that as you shift toward medium to smaller size practice,
clearly the deal volume is expected to increase, but the average deal size, just because it involves a fear number of physicians
is naturally going to decline.

So I just would caution you to really think about it in the context of deal volume, not just in absolute dollars.

Unknown Speaker*

Sounds good.

Great.

Unknown Speaker*

Thanks, Corey.

Unknown Speaker*

your next question comes from Atif Rahim.

Unknown Speaker*

We saw a increase in number of EHR vendors.

Are you seeing anything on the pricing environment, any pressure there, or how do you see that particularly on the S.A.S.

side?

14

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

76



Unknown Speaker*

Yeah, this is Glen, Atif.

We haven't seen.

That again, as I mentioned in my comments, what's becoming more and more important to people is selecting a vendor who
can deliver.

They can have have confidence that number one, they're going to be here.

Number two, they know how to get to you meaningful use, which is another -- a proxy for saying get me to the money, and
number three, they want to partner long term that's going to inno vai.

now, it's interesting.

We're seeing less and less questions on will you be certified for meaningful use and more and more questions are can we get
you on BlackBerries and iPhones and windows mobile devices, and now the new tablet from apple.

They want to know about innovation, they want to know you're going to be here.

Relative to the smaller players in S A 1st.

Remember, for most physicians, when you talk about software as a service, they don't think about technology, they say, can
you bill me monthly.

This is not -- it would be akin to somebody saying on your cell phone what switching network is AT&T or Verizon using.

They don't want to know.

That they want to know is it going to work, and either do I have a client server, is it hosted, is it S.A.S.

They want a simple way to buy.

So that's what we're seeing out there.

In terms of the number of verdicts, we continue to believe that there's a consolidation that is happening, and based on a number
of folks showing up on our door each month, trying to sell themselves, we think that that's happening more and more -- more
rapidly.

So I think you are going to see the larger players take more and more share, and they already after substantial share.

Unknown Speaker*

Okay.

As a follow-up, are you seeing any replacement market developing particularly are you displacing any existing E MR vendors
in the deals?

15

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

77



Unknown Speaker*

Absolutely.

Of the electronic health record vendors out there, there's two things going on. One, what you see is some of the vendors that
are out there won't be able to meet meaningful use.

And so people are looking for more comprehensive solutions.

And I tried to highlight in that some of my comments.

Just this month, if you look at sacred heart, for example, our win and practice management at sacred heart came at the expense
of one of our most significant vendors.

Sacred heart was one of their largest customers, and we took it away.

I said vendors.

I should have said competitors.

So that was a big competitive win head to head where we're de-installing one of the common publicly traded vendors that we
have in the mid market.

Unknown Speaker*

got it. Thank you.

Unknown Speaker*

Again, please remember to limit yourself to one question and one follow-up question.

Your next comment or question comes from George Hill.

Your line is open.

Unknown Speaker*

Hey, guys, thanks for taking the call.

Glen, real quick yes or no question.

Has this market really tipped yet, or do you think we're waiting to see that?

Unknown Speaker*

You knowe again what we're saying -- what we've said is each quarter we're seeing stronger demand and stronger interest.

I don't think the market has tipped yet.

16

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

78



I've said that when the checks start hitting, that's when we're going see an uptick in demand.

We see very strong continued growth in demand quarter to quarter going forward.

So I don't think it's, quote unquote, hit yet, but I do think he we're starting to see the results of more physicians getting confident
that the time is now.

Unknown Speaker*

I guess I just want to drill down and get a little more color on a couple of the numbers questions that you highlighted.

You talked about this single-digit top-line growth.

Was that at the end of calendar 2010, or should we think about it like a fiscal 2011, 2011, 2012 event?

Unknown Speaker*

I'm sorry, George, you're a little muscled.

I think your question was my comments just about the onslaught of demand towards the end of calendar 2010?

Unknown Speaker*

When we should start looking for the single-digit top-line growth.

Unknown Speaker*

Again, I think that -- our guidance for this year is indicative of high single digit growth.

We will be prepared to provide 2011 guidance on our fourth quarter call to preview that a tad bit in keeping with our bookings
momentum to date, and as we intimated in the fourth quarter, expecting that to continue, that all naturally is going to translate
into sustained top-line growth.

The only word of caution that I would give there is my comments around the S.A.S.

mix and the shift that we do anticipate as the smaller practices take that on, in a greater level than we're seeing today, that's
going to have some impact just in terms of our top-line growth expectations, but the benefit to that is obviously it's going to
improve our reoccurring revenue mix.

But again, we're very comfortable that if you look at our bookings performance to date and convert that to our revenue
performance, we feel comfortable with what we've conveyed as our revenue growth trajectory or expectations to the mark.

Unknown Speaker*

I think I've got a good handle on that dynamic.

Gross margins, you talked about it hovering the mid-50s this year.

17

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

79



Safe to assume -- I don't want to speak too much for the next fiscal year.

Safe to assume that number would continue to tick up with a 6 in front of it for 2011?

Unknown Speaker*

I would hesitate to get into 2011 guidance at this point.

I would say on gross margins, again I would encourage people to follow the guidance we have provided, and as some of these
initiatives ready, the ready initiatives and the U E C and the like, that's going to start to express itself, and quite honestly, way
like to show some demonstrated success before we translate that into future projection for the market.

But I would just stay tuned on that front.

Unknown Speaker*

I guess last quick one before, I hop off the line, Glen, there's a report that came out highlighting the same thing that the other
survey that you cited highlighted.

You guys definitely have a dominant mine swlaimplt can you do to increase the win rate?

Unknown Speaker*

Again, we're -- I think, if you talk to Jeff, who heads our sales operations, we have a number of targeted initiatives that we're
focused on win rate.

The good news is that all these surveys are saying two things.

One, we're the most considered solution.

And two, within our own base, the Misys space, that I think the most recent survey said 100% of the people they surveyed
indicated they were going to stay with their existing vendor, and that was us. So very, very strong news from that perspective.

In terms of win rate, we have very targeted programs, and I'd rather, as Bill was saying, I would rather talk about them after we
increase the win rate than telling you exactly and telling our competitors exactly what we're going do. But suffice it to say that
our objective is to win more than our fair share of the market, and we're looking to expand our market share.

So we're going to be very aggressive.

Unknown Speaker*

Thanks for that.

Unknown Speaker*

Thank you.

18

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

80



Unknown Speaker*

Your next question comes from Sean Wieland.

Unknown Speaker*

My questions are on the seasonality of bookings.

Historically you guys have done close to a third of bookings in the fourth quarter.

Is something this year making that change, or is that still consistent?

Unknown Speaker*

He yeah, Sean, and that was the very reason I gave more guidance than I would typically do around this fourth quarter in terms
of booking expectations.

So again, I would really encourage you to follow that, just in terms of what we convey.

I think the dynamic at play here is again, couple factors.

One is the timing of some of these larger enterprise transactions.

We talked about our first quarter benefiting from north shore.

We talked about the fact that our third quarter benefited from Catholic health.

We've purposely gotten out of continues of trying predict future large enterprise deals in any particular quarter, so meaningful
up side to our expectations.

But that's a major contributor, just thinking the about our first three-quarters performance and how that might translate to this
fourth quarter.

Secondarily this is a thabs has gone through a change, in fiscal periods.

Last year was the first fourth quarter that ended in May, so I don't think one experience defines a trend, and so I really want to
remain cautious until we kind of see how that plays out.

The third consideration is a mix consideration.

We do, as we've said, believe as we move into the second half of this year you're going start to see movement towards the low
end of the market.

There's a possibility that could accelerate somewhat so that's another contributing factor for what I believe to be kind of prudent
guidance in terms of fourth quarter expectations that we outlined.

Unknown Speaker*

Okay, great, thanks a lot.

19

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

81



Unknown Speaker*

Your next question comes from Jamie stockton.

Your line is open.

Unknown Speaker*

Thanks for taking my questions.

I guess they're both oriented towards what's going to drive that acceleration on the low end of the market.

I think probably one of the biggest programs out there are the regional extension centers.

Can you give us any more color on when you think those are going to King?

It seems like there's a frit large and growing group of physicians that they're building, then they're just trying to figure out their
short list of which EHR they're going to push into that base.

Can you talk about that?

Unknown Speaker*

Sure.

Well, again, and it geese that we kind of anticipated there would be a question.

It's a very good one.

The regional extension centers, the last group of which were selected yesterday, or another group of which were selected
yesterday with millions of dollars more allotted to that program, are something we're very focused on. As you know, the way
the program works is for every physician, there's $5,000 set aside.

And that's broken up into three tranches.

The first third is given when the physician signs up with a regional extension center.

The second third of that 5,000 is given when that physician is trained, and the last third is given when that physician gets to
meaningful use.

And each of the regional extension centers is likely to select two or three different providers of software or vendors that they
will train for.

So right now we're spending a tremendous amount of time working with the regional extension centers, making sure that they
all are aware of our offerings, the support we price, and most important, when you talk about competitive advantage, if you're
a regional extension center, the question is how do you get paid as quickly as possible.

20

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

82



If you go to a user, that doesn't have an electronic health record, but also doesn't after practice management system, you've
got to install practice management first.

And that takes a lot of time, the and that's a delay relative to getting the money.

So what they he is special appreciate about Allscripts is given a third of the physicians in the country already have one piece of
our software and over 100,000 have our practice management systems, an easy route for them is to go to our base and say,
here, we will overlay an Allscripts electronic health record on top of that, and they get them signed up, they get them trairngsd
and they get to meaningful use more quickly.

So that's our strategy there.

It's been working effectively, and this market is moving real-time.

So again, if you think about, what makes us unique, stimulus guarantee, our distribution network, our brand, which is that mind
share, the current installation, which I just mentioned, over 100,000, and lastly, the portfolio, because they want to do more
than just use an electronic health record.

So that's why we're going to win with regional extension centers.

Unknown Speaker*

Glen, the other question I had on the -- Well, I ghes could impact the practices of any size, but my guess is it it will have a
disproportionate one on smaller practices, the e-prescribing number that you threw out, seems like it's grown.

Can you talk about the tran -- what's the generally timing the on that?

Unknown Speaker*

There's a very simple answer to that, and let me just use one example.

If you are going from our electronic prescribing, to our professional system, all of your data is migrated with one touch.

So it's essentially a one-touch migration that puts all of that data into our professional EHR.

Again, great work by our chief innovation officer, Stanley crane, in making that has.

Then, of course, you've got to go through the training.

The good news is that same electronic prescribing, which they're familiar with is the same electronic prescribing used in our
professional EHR.

So now there's that great crossover, where they're familiar with the application.

And the way most people start using an electronic health record is module by module.

So in that case, they adopt the electronic health record, they start e-prescribing, then they add labs, next thing you know, you
go in, you say is -- we see that base as, I said, the on-ramp, our director of -- vice president of our Investor Relations likes to say
the on-ramp to the electronic healthcare highway.

21

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

83



And I think that's good description.

Unknown Speaker*

Okay, thanks.

Unknown Speaker*

Your next question comes from Charles Rhyee.

Unknown Speaker*

Thanks for taking the question.

Question on gid arngs Bill.

If I look at it, and take the full-year guidance back out, looking at what the implied 4Q guidance is on the revenue line, is it fair
to think -- you talked about professional services ticking back up, sort of for the seasonality.

But when I look at that time other bucks, is it fair to think what we're really going to see is particular -- a tick-up of the system
sales?

Unknown Speaker*

Yeah, we're -- without getting into too much specificity, I think that the -- we're not expecting anything unusual from a reoccurring
revenue ramp perspective.

So to cushion in on service component in the system sales component is absolutely appropriate.

Unknown Speaker*

So, if I look at the third quarter and sort of the take-down of the backlog, looks like it's kind of sped up relative to the previous
two quarters, and it looks like we're implying that accelerating again.

Can you talk about sort of what's going on structurally, I guess in terms of implementation and your ability to recognize the
revenue faster, and how should I think of that in terms of obviously not talking specifically to guide arngs but just generally as
we look out in the future?

Unknown Speaker*

Sure, there's two things that I would call out for you, and I tried to state this last quarter.

Maybe not as directly as I should have, but there's a natural lag in terms of our enterprise booking performance, and when that
starts to present itself from a revenue perspective, because on the enterprise we recognize on percentage of completion
accounting.

22

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

84



So there's nothing that we're doing anything different, per se, it's just indicative of the fact that you're starting to see kind of
the full effect of those transactions going into production and us being able to recognize the revenues.

So enterprise performance and backlog conversion point number one.

Point number two is that Glen made reference to new leadership in the service organization.

There is a renewed focus on really, quite honestly, aggressive backlog management, and making certain that resource allocation
is pointed in moving clients forward with an ear towards revenue op tie me sanction that respect.

So I think you're starting to see the early stages of some of that work, and just even tighter backlog management under that
new leadership.

So those would be the two considerations, which both, I think, have a decent amount of sustainability to them.

Unknown Speaker*

Is one having more influence than the other?

Is it a fact -- is it simply, like if I look back, maybe three, four quartering a, to the fourth quarter last year, nice, big sequential up
tick in the license revenues is that what we're seeing here in the third quarter of this year, and so I should look at that it way?

Or would you say it's explore the better management, the backlog in general?

Unknown Speaker*

I would say -- I mean, as it pertains to the third quarter, and I don't have the breakdown in front of me, but my recollection was
is that it was largely due to the enterprise kind of dynamic, and again, the build of the strong bookings over the last few quarters,
and that's starting to manifest itself in revenue take-down, and you're starting to see the early stages, thus of, smaller impact
in some of the backlog management that I was describing.

Unknown Speaker*

Okay, that's helpful, bick just wanted to make sure, question earlier about bookings, you talked about you expect the sequential
demand in bookings to generally be an upward trend.

Should we see that translate pretty evenly down to system sales as well?

Unknown Speaker*

Yeah, I mean, for the most part, yes, there's a little bit of mix consideration there on the margin that I would just caution you
on, just in terms of, again, how much of that fourth quarter bookings comes in the form of S.A.S.

versus how much of it comes in the form of add-on sales to existing customers, then how much of it is enterprise that's going
to go straight to backlog.

So we feel like we've taken some conservative assumptions in that 105 kind of baseline that we talked about in terms of what
we're needing.

23

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

85



So to the extent we're wrong to the positive, then there will likely be a little bit of revenue up side to what we're conveying.

Unknown Speaker*

great, thanks.

Last question.

You talked about over time you expect to get to maybe a third S.A.S.

, and starting to see that up tick I at the vend calendar '10. How long do you think it takes you to get there, you think?

Unknown Speaker*

I think we're talking about several quarters.

I think that you're well into calendar 2011 before we kind of hit that run rate level.

Unknown Speaker*

Great, thanks a lot, guys.

Unknown Speaker*

Your next question comes from Richard close.

Your line is open.

Unknown Speaker*

Thank you.

Can you hear me okay?

Unknown Speaker*

Yeah, we can, Richard.

Unknown Speaker*

great.

Bill, just on the bookings and talking the about timing of enterprise deals, I guess the fourth quarter direction that you gave
here on the bookings, should we imply that maybe the sizable deals that you took do you know in the most recent third quarter
indicates that maybe you guys haven't filled the pipeline with enterprise deals for the fourth quarter?

24

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

86



Unknown Speaker*

No, not conveying that at all.

Actually, let me make two observations.

One is I honestly believe some people have overstated the contribution of Catholic health in the third quarter, most notably,
ace mention he'd, I think on last quarter's call, it has the potential of beg as large as north shore, Long Island Jewish.

As you know, our booking definition is minimal con track you the wall commitment.

Half of that of north shore so closer to 5 million.

I have seen several people publish numbers that were close to 2x. That so that's point number one.

Point number two is that from a pipeline perspective we remain very bullish in terms of the number of pipeline opportunities
that we have ton enterprise side.

When they get to be the Moore complex high dollar value what I said earlier is the fact that we really have gotten out of the
business of really banking on those to deliver any one particular quarter.

This fourth quarter in particular, because, again, we've witnessed the circumstances where they don't materialize for one reason
or another, and Catholic health is a perfect example of. That there was one that had real possibility of closing in our second
quarter, and it closed in the first week of the third quarter.

Really, the way I would interpret our guidance, not a belief the pipeline is going down, rather we feel like we're being prudent
and not putting undue reliance on any deal in coming up with expectation.

Unknown Speaker*

that's helpful.

Glen, you detailed some pretty nice-size wins the opportunity on the affiliated side.

How quickly do you guys feel that you will be able to penetrate those affiliated bases on all the wins that you guys have have
had over the last couple quarters?

Unknown Speaker*

We're gearing up to do that.

We're learning, as we go. We eased very good success so far.

North shore, Long Island, Jewish, it always helps when an organization brings in a group of physicians.

Indicates to them that they will be either buying or subsidizing the application.

They will be providing assistance, and they will be providing connectivity, for example, in north shore's casek and in some of
the cases I mentioned today, to all of the ERs.

25

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

87



As that starts to happen, people are going to understand that having a connected system of health is critical from a safety
perspective and from an ease of use perspective.

So, net-net, we think that in every case where we're getting these, whether it be north should, whether it be U-mass, another
great client, we're making real solid progress in terms of the numbers.

And again, what's nice from our perspective is if everything happened today that would be a problem.

We couldn't handle it all.

So it's gearing up nicely as we're gearing up, and I would describe that in the same way Bill and I have described each quarter.

Each quarter we'll get better, incrementally better than the quarter before, and there will be a nice build on that.

If and then do you think they are going to be professional deals or my way deals?

Unknown Speaker*

That's going to vearks depending on the market.

In some cases, they will offer both, and some of these, when they say affiliated practices, while most of them are small, if I use
-- I will use north shore as an example yet again, there are two groups there that have more than 50 physicians each that earn
the initial tranche.

And those groups will like go with enterprise.

There are other groups that are going with other of our application, whether it be professional or whether it be my way.

Wind also mention that remember, some of the groups in these respective market areas bought ahead of the announcements.

So they may have one of our systems. The good news is if you're buying all scrirngs you are going to be connected to the net
work.

And that's reasugar for these clients, because they want to be connected, and when you're talking the about a network that's
already a third of tftions in America, there's a lot of comfort that comes from that.

Physicians like that security.

Unknown Speaker*

Thank you.

Unknown Speaker*

Why don't we take two more questions, just to be fair with people's time.

26

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

88



Unknown Speaker*

Your next question comes from Glenn Garmont.

Unknown Speaker*

as I think about the small end of the market, I can appreciate that that end of the market hasn't really heated up yet in earnest,
but what's the biggest obstacle at this point?

Is it -- presumably the uncertainty around meaningful juice starting to dissipate.

Does it economy?

Is it sim my the fact that they have -- still have a lot of time relative to large practices?

What do you think is holding back at this point?

Unknown Speaker*

It's a little bit of all of the above.

Some of them are saying I will wait until I see the first check from the government to believe it. Some of them are saying I will
wait until I see whether any of the big health systems in our area are going to give this to me or give assistance.

Some of them are saying, I surely don't want to change my practice management system, and they've been approached by
folks who are suggest they do that, so they're waiting for someone like Allscripts to come along and say, you don't have to
change your practice management system.

And some of them are just taking a little bit of a wait and see, hey, I still have some time, I'm going wait and see, I'm going get
started a little more slowly.

So it's all of the above, but that said, every month, every quarter, we're seeing more and more of them start to explore, start to
get interested, start to see that the number of practices around them are adopting.

Remember, 163,000 practices have less than three physicians.

And it's going to take some time.

But that's good news for us. The other thing I would say is, a recent article in the "New York Times," the and it was interesting,
because it actually featured one of the announcements today, park view, where some of their in dependent physicians had
decided to actually join, become a part of the larger integrated delivery network or healthcare system, in part due to automation.

So it was pretty fascinating, because one of the reasons the physician gave in the article was, well, they're fully automated, I'll
be fully connected, I will have all their information, and it will be easier.

So that's also a factor.

But, net-nerkts again, I think the real message is the time is now, it is happening, and every quarter is going to get better.

27

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

89



Unknown Speaker*

Appreciate the comments.

Thanks, Glen.

Unknown Speaker*

last question.

Unknown Speaker*

Your last question comes from Greg Bolan.

Your line is open.

Unknown Speaker*

thanks and congrats on a great quarter.

Bill, as it relates to no payments program, can you describe kind of tad vantages or disadvantages of dealing with the -- your
banking partner rather than dealing direct well an individual client when it comes to the visibility of payments?

Unknown Speaker*

Yeah, I actually -- about 25% of our professional my way transactions actually do involve third-party financing, and I've said to
many investors, I would actually take a lot higher percentage of that, the simple reason being the surety of collection and ease
of administration from our perspective is just that much better.

We've gotten this thing down to a pretty des sun science in terms of the evaluation of these customers from a credit perspective
and really have engrinned it into our sales process in a very effective way.

So we are very pleased with the program.

It's net positive to us, again, from an administration cash flow perspective, and we'd take more, if it was of interest, to our
customers.

Unknown Speaker*

that's helpful, thanks.

Last one here, with regards to the recruiting environment, first, call it season quota carrying reps, can you talk about the level
of competition that Diane and her team are encountering during possibly poaching ex spie decisions, and how would you
characterize your discipline with kind of, call it buying top talent?

28

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

90



Unknown Speaker*

Well, think the good news this is Glen, one, and Diane Adams, we went out and got world-class talent to help us recruit talent.

So that's a great start.

We aren't doing a lot of poaching in any respect.

We're looking to hire in a few key areas, but one of the initiatives we're undertaking is hiring a substantial number of college
grads, and we believe with our ready systems and our upgrade enablement center that we can quickly train those folks to
educate potential prospects and buyers, similarly, remember, the RECs are going to be helpful in terms of training folks.

But overall, I think Allscripts remains a very desirable place to work.

We've won a number of awards for top places to work in our respective communities that we operate in, company is a very
giving company from that perspective, so I think people look to us, and they like our locations.

It's in the like we're in the middle of Wisconsin or anything.

We're in great locations to work.

In Raleigh and other places, and we're doing a good job recriewlting.

Unknown Speaker*

that's great.

Thanks, guides.

Unknown Speaker*

okay, thanks, everyone.

And again, very much appreciate everyone joining us on the call.

We couldn't be more excited about what we see happening in the market, and a special thanks to our existing investors to all
the clients that have confidence in us, and to the employees who are making it happen every quarter.

Thanks very much.

We'll talk to you next quarter.

Unknown Speaker*

this concludes today's conference call.

You may now disconnect.

29

THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us

©2010 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by
framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the
Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies.

P R E L I M I N A R Y  T R A N S C R I P T

Apr. 07. 2010 / 8:30PM, MDRX - Q3 2010 Allscripts-Misys Healthcare Solutions, Inc. Earnings Conference Call

91