Athenahealth shares recover slightly
NEW YORK - Shares of athenahealth Inc. made a slight recovery yesterday, but analysts continued to reduce their expectations for 2009 based on the medical software maker's plan to invest more money in its business this year.
The Watertown company said Thursday that its operating expenses will increase in the first half of the year as it wraps up enhancements to client-service organizations.
Athenahealth also plans to increase product development works, leading to greater research and development costs, and said it will make bigger investments in sales and marketing to attract new clients.
The spending will lead to a pause in profit margin growth, athenahealth said. The company also said it will change the way it calculates its taxes. In Friday trading, the stock plunged 25.4 percent. It closed 17 cents higher yesterday at $25.67.