Cerner reports record bookings, projects continued growth

Cerner Corp. has continued its recent trend of surpassing previous high-water marks for new business under contract. The North Kansas City-based health care information technology announced Tuesday that quarterly bookings reached an all-time high of $1.16 billion in the fourth quarter of fiscal 2014.

That marked an increase of close to 5 percent over Cerner’s previous quarterly bookings record of $1.11 billion, posted in the fourth quarter of 2013. The company’s full-year bookings for 2014 reached $4.25 billion, up 13 percent over $3.77 billion in 2013.

The company reported fourth-quarter net earnings of $147.9 million and diluted earnings per share of 42 cents, compared with $60.1 million and 17 cents in the final quarter of 2013.

For all of 2014, Cerner posted net earnings of $525.4 million and diluted earnings per share of $1.50, up from $398.4 million and $1.13 per share in 2013.

The health care IT firm generated $926 million in revenue for the fourth quarter, which was 16 percent higher than its 2013 record.

Global revenue grew 34 percent, and domestic revenue increased 14 percent for Cerner in the fourth quarter. For the full year, however, global revenue grew 6 percent and domestic revenue grew 18 percent.

“The higher rate of global growth in the fourth quarter was driven by strong software and technology resale as well as continued growth in global managed services,” said Marc Naughton, Cerner’s chief financial officer.

Adjusted net earnings and diluted earnings per share reflected adjustments related to Cerner’s acquisition of Siemens Health Services, which reduced net earnings by $4.2 million and diluted earnings per share by $0.02.

Cerner predicted that its acquisition of the German health care giant would bring thousands of new clients. The deal also added 6,000 employees, making Cerner the largest employer based in the Kansas City area.

For fiscal 2015, Cerner said it expects first-quarter revenue to exceed $1 billion and full-year revenue to reach between $4.8 and $5 billion. The company projected full-year adjusted EPS before share-based compensation and acquisition-related adjustments of $2.05 to $2.15.

“We are well positioned for good growth in 2015 and beyond as we see significant opportunities to grow by delivering solutions that support health care’s shift from a fee-for-service model to a model that incents improving the health of populations and providing better outcomes at lower costs,” Cerner chairman Neal Patterson said in a news release.

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