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RealTime IT News

WebMD-Microsoft Technology Pact Ends

Internet health care company WebMD Corp. announced Sunday that its technology pact with Microsoft Corp. has been terminated by the firms. The agreement, which was sealed in April 2001, had been contingent on the parties reaching agreement on certain technology requirements and licensing terms.

However, according to a WebMD statement, all other aspects of WebMD and Microsoft's strategic relationship will continue unchanged as the company will continue to provide health programming on MSN and other Microsoft-affiliated sites.

The Elmwood Park, N.J. company also said it may have trouble hitting its quarterly revenue target due to shipping delays, telecommunications difficulties and scheduling conflicts stemming from events last week in New York City.

"Although travel and shipping delays, telecommunication difficulties, scheduling conflicts and other after effects of last week's events may have some impact on our revenue expectations for the September quarter, particularly in our physician software product offerings, we were fortunate that substantially all our employees, facilities and business operations were not significantly impacted by the events of last week," said Chairman and Chief Executive Martin Wygod.

But neither delays nor the termination of the pact with Microsoft will impact the rollout of its newest products, ULTIA and Intergy. WebMD said that it will continue to use and PocketPC for ULTIA and will also continue to seek out new ways to work together with Microsoft in other areas of their respective businesses.

Furthermore, the company said it may take a non-cash charge to write down goodwill and other intangible assets stemming from a number of acquisitions made during the past two years.