Cerner Corp. on Thursday reported basically flat new business bookings valued at $1.17 billion for the first quarter of 2016, but the company said that reflected a comparison with an all-time high in the same quarter a year ago.
The North Kansas City-based health care technology company said first-quarter revenues were $1.14 billion, up 14 percent from $996 million in the first quarter of 2015. The new count came in about $10 million below the company’s guidance range.
Company officials said the lower-than-expected rise in revenues was “largely due to a decline in low-margin technology resale revenue, which partially offset good growth in software, subscriptions and services.”
Cerner reported net earnings of $150.4 million for the quarter, compared to $110.9 million a year earlier. Diluted earnings per share were reported at 43 cents, compared to 32 cents in the year-ago period.
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The company said operating cash flow was $327.1 million for the quarter.
“Our first-quarter results reflect a good start to the year,” Cerner president Zane Burke said in prepared remarks. “We continue to have great success at gaining new clients, which is a reflection of a robust replacement market and our competitiveness.”
In addition to selling electronic health record systems to hospitals and doctors offices, Burke said Cerner is having success selling its cloud-based population health system designed to monitor and share patient health records both inside and outside its existing installations. Cerner says its health information technology is used in more than 20,000 facilities worldwide.