Cerner reports strong new business orders in the first quarter

Cerner Corp. said Thursday that its orders for new business hit an all-time high in the first quarter this year. Those bookings for the quarter ended April 4 reached $1.2 billion, an increase of 32 percent from $910.2 million in the first quarter of 2014.

The company said first-quarter revenue this year totaled $996.1 million, up 27 percent from the year-earlier period, when revenue was recorded at $784.8 million.

Cerner said revenues were lower than forecast because of “a combination of lower-than-expected revenue from the recently closed acquisition of Siemens Health Services and lower revenue in our existing business.”

The company said the lower results did not have a material effect on profitability. It reported net earnings for the most recent quarter at $110.9 million, compared with $119.5 million in the first quarter a year ago.

“Cerner’s first quarter results represent a solid start to the year,” Cerner chairman and chief executive Neal Patterson said in prepared remarks. “With the exception of lower-than-expected revenue, all of our results were at or above expected levels, with bookings being particularly strong and representing an all-time high.”

Diluted earnings per share were 32 cents in the quarter, compared with 34 cents a year ago.

The company reported an operating cash flow of $214.2. million for the quarter.

Patterson said the new-business bookings reflected success “at attaining new clients, both domestically and around the world.”

Cerner expects second-quarter 2015 revenue between $1.175 billion and $1.225 billion and full-year revenue between $4.65 billion and $4.8 billion.

This story was originally published May 7, 2015 at 3:42 PM with the headline "Cerner reports strong new business orders in the first quarter."