Cerner reports increases in revenues, profits and business orders

07/24/2014 3:37 PM

07/24/2014 4:49 PM

Cerner Corp. on Thursday reported another quarter of strong financial results, highlighted by a record increase in new business bookings.

The North Kansas City-based health care information technology company said orders for its products and services climbed to $1.08 billion in the second quarter, up 15 percent from the same period in 2013. Cerner said those bookings represented the best second quarter in its history.

As more hospitals, doctors and other medical providers upgrade their patient record keeping and billing systems to comply with new health care mandates, Cerner and other technology companies continue to reap the benefits.

In the second quarter, Cerner said, revenue climbed 20 percent from a year earlier to $851.8 million.

Net earnings climbed to $129 million, or 37 cents per share, for the three months that ended June 28, up from $112.9 million, or 32 cents per share, in 2013’s second quarter.

“Our outstanding second-quarter results reflect Cerner’s strong position in a growing industry,” said Neal Patterson, Cerner’s chairman, chief executive and co-founder. “Health care providers face a growing list of measures and mandates that are putting pressure on them to lower costs while also improving quality.”

Patterson said Cerner continues to invest heavily in research and development.

The financial results were released after the close of regular trading hours on Wall Street. Shares in Cerner closed Thursday at $55.64, down 33 cents.

The company also provided financial estimates for the rest of 2014. Cerner said it expects third-quarter revenue of $840 million to $870 million and full-year revenue of $3.3 billion to $3.4 billion. The 12-month range is up from a previous estimate of $3.25 billion to $3.4 billion.

Cerner said orders for new business in the third quarter should reach $1 billion to $1.1 billion, keeping pace with the second-quarter results.

To reach Steve Rosen, call 816-234-4879 or send email to srosen@kcstar.com.

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