CPSI 2017 Annual Report

44 the effect of recent tax reform legislation. These three factors combined for a net $8.8 million expense during 2017, impacting the period's effective tax rate by approximately 65.2%. Our effective tax rate for the year ended December 31, 2016 was uncharacteristically high, primarily due to permanent non-deductible acquisition transaction costs of $3.8 million. Net Income (loss) . Net income (loss) for 2017 decreased by $21.3 million to a net loss of $17.4 million, or $1.27 loss per basic and diluted share, compared with net income of $3.9 million, or $0.29 per basic and diluted share, for 2016. Net loss represented 6.3% of revenue for 2017, compared to net income representing 1.5% of revenue for 2016. 2016 Compared to 2015 Revenues. Total revenues for the year ended December 31, 2016 increased 46.7%, or $85.1 million, compared to the year ended December 31, 2015. This was largely attributable to $86.6 million of revenue contributions from the acquisition of HHI. System sales and support revenues, consisting of the Acute Care EHR and Post-acute Care EHR segments, increased by 56.8%, or $67.3 million, from the year ended December 31, 2015. This increase was largely attributable to $73.1 million of revenue contributions from the acquisition of HHI. System sales and support revenues were comprised of the following for the year ended December 31, 2016 and 2015: Year ended December 31, (In thousands) 2016 2015 Recurring system sales and support revenues (1) Acute Care EHR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 117,482 $ 79,477 Post-acute Care EHR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,082 — Total recurring system sales and support revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137,564 79,477 Non-recurring system sales and support revenues (2) Acute Care EHR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,665 38,908 Post-acute Care EHR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,436 — Total non-recurring system sales and support revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,101 38,908 Total system sales and support revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 185,665 $ 118,385 (1) Mostly comprised of support and maintenance, third-party subscriptions, and SaaS revenues. (2) Mostly comprised of installation revenues from the sale of our acute and post-acute care EHR solutions and related applications under a perpetual (non-subscription) licensing model. Nonrecurring Acute Care EHR system sales and support revenues increased $2.8 million, or 7.1%, primarily due to $10.4 million of revenue contribution from the acquisition of HHI. The contribution of Healthland was partially offset as Evident’s new installation and add-on revenues decreased $7.6 million, or 19.5%, as add-on sales to existing customers for the Company's Emergency Department and Thrive Provider EHR solutions experienced a decline due to lower installation volumes during 2016. Related to the market for new system installations, Evident completed financial and patient accounting system installations at 21 new hospital clients in 2016 (five of which were under Cloud EHR or other SaaS arrangements) compared to 16 during 2015 (eight of which were under Cloud EHR or other SaaS arrangements). Despite the increase in non-Cloud EHR new system installation activity, the related revenues remained relatively unchanged as the average installation value decreased from 2015. Post-acute Care EHR nonrecurring revenue, all attributable to the HHI acquisition, contributed $6.4 million of revenue during 2016. Recurring Acute Care EHR system sales and support revenues increased $38.0 million, or 47.8%. The acquisition of HHI contributed $36.3 million of recurring revenues. The remainder of the increase came from the Evident customer base, resulting in a $1.7 million, or 2.2% increase, primarily due to newly installed and add-on software support fees. Recurring Post-acute Care EHR system sales and support revenues contributed $20.1 million in 2016 as a result of the acquisition of HHI.