MDRX - Veradigm cuts revenue forecast for fiscal 2023

2023-03-23 06:18:12 ET

Veradigm ( NASDAQ: MDRX ) has revised its financial guidance for fiscal 2023, now expecting revenue in the range of $615M-$635M vs. $625M-$645M previously.

Adjusted earnings outlook remains unchanged at $0.80 and $0.90 per share.

In addition, Veradigm ( MDRX ) said it received a non-compliance notice from Nasdaq related to its delayed filing of Form 10-K.

Previously, in February, the company received a 15-day extension to file its annual report. The additional time was needed to complete an expansion of year-end audit procedures due to some detected internal control deficiencies, Veradigm said at the time.

While the nature of the internal control deficiencies has not changed, the volume of transaction testing and time periods to which they are being applied have increased to help ensure that any prior errors are fully quantified and corrected. As a result, the expanded audit procedures have not been completed, and as such, the company has not yet filed its Form 10-K.

Veradigm ( MDRX ) now has 60 days to file its Form 10-K or to submit a plan to regain compliance with Nasdaq's continued listing requirements.

As the expanded audit procedures are now being applied to earlier time periods, the cumulative impact is expected to increase to ~$40M, but not exceed 5% of full year revenue from continuing operations for either 2021 or 2022.

The company has determined that the impact for 2021 will require a restatement of its financial statements for the year ended December 31, 2021, and these restated amounts will accompany the 2022 Form 10-K filing.

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