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TriZetto Ups Outlook on Results

Newport Beach-based healthcare software maker TriZetto Group Inc. beat expectations with its third-quarter results and upped its outlook for the rest of the year.

The company, which provides software and services for health plan insurers and benefits administrators, reported net income of $6.5 million, up 8.3% from a year earlier.

Sales were $73.1 million, up 9%.

For the year, TriZetto said it sees earnings coming in at up to $19 million, up from an earlier projection of about $18 million.

Revenue for the year is seen coming in at $285 million to $290 million.

“Strong new contract bookings of $75 million in the third quarter drove our 12-month backlog to $194 million, up 11% sequentially from the prior quarter,” Chief Executive Jeff Margolis said.

The company said it signed 261 contracts with new customers in the quarter.

TriZetto also said it is figuring out how to account for stock options in accordance with a rule set to take effect Jan. 1. The change, which requires companies to account for options as expenses, could add up to $8 million in expenses next year, TriZetto said.

In September, TriZetto said the Securities and Exchange Commission was looking into how it accounts for revenue from some upfront fees and from outsourcing services it provides.

On Tuesday, the company said it has provided the SEC with information and been informed regulators don’t have any further questions at this time.

TriZetto hasn’t made or doesn’t expect to make changes to financial results because of the inquiry, it said.

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