Daou woos Perot Systems in hopes of potential buyoutHealthcare information systems company and application service provider Daou Systems is hoping to join forces with Perot Systems and is currently negotiating a potential buyout. According to
Healthcare information systems company and application service provider Daou Systems is hoping to join forces with Perot Systems and is currently negotiating a potential buyout. According to the San Diego, CA-based firm, the purchase price being discussed is not a premium over its market price. Despite the ongoing talks, Daous stock price dropped over 20% to $2.19/share on August 11 from a closing price of $2.75/share on August 9, following the companys poor second quarter earnings report.
Daou reported a net loss of $2.8 million, or 16¢ per share, on revenue of $16.1 million for second quarter 2000, compared to net income of $60,000 on revenue of $27 million for second quarter 1999. The company blames its lower-than-expected earnings on lagging demand for healthcare IT services due to continued effects of Y2K and the Balanced Budget Act, managed-care cost pressures, slow demand for HIPAA-related services, and uncertainties surrounding healthcare integration.
In related news, Perot Systems has closed a strategic agreement to provide infrastructure design and implementation and operational support systems to Tellaire, a telecommunications provider of laser-based broadband communications. This partnership will further the Dallas firms reach in wireless broadband.