Cerner posts record bookings, addresses new military contract

On a day that Cerner reported lower profits despite record bookings, executives for the fast-growing North Kansas City-based health care IT company addressed its big military contract for the first time.

Cerner on Tuesday reported reported $1.29 billion in bookings during its second quarter, an increase of close to 20 percent over the same quarter last year.

Revenues were also up, to $1.13 billion from $851.8 million. But a 53 percent spike in operating expenses led to lower profits, down to $115 million from $129 million.

Company president Zane Burke said the $4.3 billion contract to overhaul military health records — a contract Cerner won in tandem with other companies — is “big and complex and hard,” but that’s nothing new for the company.

Analysts have hailed the contract as a triumph for Cerner, but some raised concerns that it will distract the company from its core business and that the bid was so low it will cut into Cerner’s profitability.

Read more from the Kansas City Star and the Kansas City Business Journal

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