Cerner reports record bookings, strong profits

Cerner co-founder Cliff Illig (right) takes Gov. Jay Nixon on a tour of Cerner's proposed Three Trails Development in south Kansas City during a January 2014 press event. | Courtesy of Cerner
Cerner co-founder Cliff Illig (right) takes Gov. Jay Nixon on a tour of Cerner’s proposed Three Trails Development in south Kansas City during a January 2014 press event. | Courtesy of Cerner

Cerner Corp., a health technology provider based in North Kansas City, reported third-quarter bookings of $1.1 billion, an all-time high, along with a 20 percent rise in earnings per share and a 15 percent growth in revenues compared with the third quarter last year.

Cerner on Thursday posted a 20 percent year-over-year rise in earnings per share to 42 cents for the third quarter, which hit analysts’ consensus estimate. Net earnings rose 14.9 percent to $145.3 million from $123.6 million in the third quarter of 2013. Revenues rose to $840.1 million from $727.8 million, and bookings grew 19 percent.

The company’s technology is used by more than 447,600 providers and is licensed at more than 14,300 facilities in 22 countries. It has 15,000 employees worldwide, including about 9,000 employees in the Kansas City area. Cerner in September announced a partnership with Apple to build integrations with HealthKit, Apple’s mobile health service. Also, Cerner is building a new campus for its employees in Kansas City that will cost an estimated $4.3 billion during the 10-year buildout.

Boosted by its recent $1.3 billion deal to acquire Siemens Health Services, the company expects its annual revenues to cross $4.5 billion this year.

“The significant investments we have made in our solutions and services are contributing to our success,” Cerner CEO Neal Patterson said in a statement. Cerner expects fourth-quarter revenue of between $880 million and $915 million.

The Affordable Care Act, which is driving hospitals and health care providers to lower costs and improve quality, is considered a factor beneficial to Cerner.

“We are positioned to thrive in the future because we are creating solutions that help our clients navigate the shift occurring in health care,” Patterson said.


Tags:, , , , , ,

Have you heard?

Missouri Business Alert is participating in CoMoGives2019!

Find out how we plan to use your gift to enhance training and programming for our students

Learn more