KANSAS CITY, Mo., April 28, 2011 (GLOBE NEWSWIRE) -- Cerner Corporation (Nasdaq:CERN) today announced results for the 2011 first quarter that ended April 2, 2011, delivering strong levels of bookings, revenue, earnings and cash flow.
Bookings in the first quarter of 2011 were $524.9 million, an increase of 30% compared to first quarter 2010 bookings of $404.9 million and an all-time high level of bookings for a first quarter.
First quarter revenue was $491.7 million, up 14 percent compared to $431.3 million in the year-ago period.
On a Generally Accepted Accounting Principles (GAAP) basis, first quarter 2011 net earnings were $64.6 million and diluted earnings per share were $0.75. First quarter 2010 GAAP net earnings were $50.3 million and diluted earnings per share were $0.59.
Adjusted (non-GAAP) Earnings
Adjusted first quarter 2011 net earnings were $69.1 million, an increase of 29 percent compared to $53.7 million of adjusted net earnings in the first quarter of 2010. Adjusted diluted earnings per share were $0.80 in the first quarter of 2011 compared to $0.63 of adjusted diluted earnings per share in the year-ago quarter. Analysts' consensus estimate for first quarter 2011 adjusted diluted earnings per share was $0.76.
Adjusted Net Earnings is not a recognized term under GAAP and should not be substituted for net earnings as a measure of the Company's performance but instead should be utilized as a supplemental measure of financial performance in evaluating our business. Following is a description of adjustments made to net earnings. For more detail, please see the accompanying schedule, titled "Reconciliation of Adjusted Net Earnings and Adjusted Diluted Earnings Per Share to GAAP Net Earnings and Diluted Earnings Per Share."
Adjusted first quarter 2011 and 2010 net earnings and diluted earnings per share exclude share-based compensation expense, which reduced first quarter 2011 net earnings and diluted earnings per share by $4.6 million and $0.05, respectively, and reduced first quarter 2010 net earnings and diluted earnings per share by $3.5 million and $0.04, respectively.
Other First Quarter Highlights:
- First quarter cash collections of $531.1 million and operating cash flow of $126.5 million.
- First quarter free cash flow of $84.7 million, which is an all-time high level of free cash flow in a quarter. Free cash flow is a non-GAAP financial measure defined as operating cash flow less capital expenditures and capitalized software. For more detail, please see the accompanying schedule, titled "Reconciliation of GAAP Operating Cash Flow to non-GAAP Free Cash Flow."
- Days sales outstanding of 87 days compared to 89 days in the year-ago quarter.
- Total revenue backlog of $5.13 billion, up 19 percent over the year-ago quarter. This is comprised of $4.46 billion of contract backlog and $665.7 million of support and maintenance backlog.
"Our first quarter results represent a very good start to the year, with Cerner again delivering strong bookings, revenue, earnings, and cash flow," said Neal Patterson, Cerner chairman, CEO, president and co-founder. "Cerner remains very well positioned to continue benefiting from demand driven by stimulus, healthcare reform, and other regulatory requirements, such as ICD-10 codes, that can be addressed with our solutions and services. We are also continuing to invest in new solutions and services that we believe will fuel growth beyond the next few years and through the decade, such as Cerner ITWorksSM, Cerner RevWorksSM, and our Healthe Intent™ cloud-based platform that will serve as the foundation for many future offerings," Patterson said.
Future Period Guidance
Cerner currently expects:
- Second quarter 2011 revenue between $505 million and $520 million.
- Second quarter 2011 adjusted diluted earnings per share before share based compensation expense between $0.83 and $0.87.
- Second quarter 2011 new business bookings between $540 million and $570 million.
- Full-year 2011 revenue between $2.07 billion and $2.12 billion, up from a previous range of $2.05 billion to $2.1 billion.
- Full-year 2011 adjusted diluted earnings per share before share-based compensation expense between $3.55 and $3.62, up from a prior range of $3.50 to $3.60.
- Share based compensation expense to reduce diluted earnings per share by approximately $0.05 - $0.06 in the second quarter of 2011 and between $0.21 and $0.23 for the year.
Earnings Conference Call
Cerner will host an earnings conference call to provide additional detail on these results at 3:30 p.m. CT on April 28. The dial-in number for the conference call is (617) 597-5358; the passcode is Cerner. The company recommends joining the call 15 minutes early for registration. The re-broadcast of the call will be available from 6:30 p.m. CT, April 28 through 11:59 p.m. CT, May 1. The dial-in number for the re-broadcast is (617) 801-6888; the passcode is 88491853.
An audio webcast will be available live and archived on Cerner's website at under the About Cerner section (click Investor Relations, then Presentations and Webcasts).
About Cerner
Cerner is transforming healthcare by eliminating error, variance and waste for healthcare providers and consumers around the world. Cerner® solutions optimize processes for healthcare organizations ranging in size from single-doctor practices, to health systems, to entire countries, for the pharmaceutical and medical device industries, employer health and wellness services industry and for the healthcare commerce system. These solutions are licensed by more than 9,000 facilities around the world, including approximately 2,600 hospitals; 3,500 physician practices covering more than 30,000 physicians; 500 ambulatory facilities, such as laboratories, ambulatory centers, cardiac facilities, radiology clinics and surgery centers; 800 home-health facilities; and 1,600 retail pharmacies. The trademarks, service marks and logos (collectively, the "Marks") set forth herein are registered and unregistered trademarks and/or service marks owned by Cerner Corporation and/or its subsidiaries in the United States and certain other countries throughout the world. (Nasdaq:CERN). For more information about Cerner, please visit , , , and .
This release contains forward-looking statements that involve a number of risks and uncertainties. It is important to note that the Company's performance, and actual results, financial condition or business could differ materially from those expressed in such forward-looking statements. The words "positioned," "continue," "guidance," "believe" and "expects" or the negative of these words, variations thereof or similar expressions are intended to identify such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the possibility of product-related liabilities; potential claims for system errors and warranties; the possibility of interruption at our data centers or client support facilities; our proprietary technology may be subject to claims for infringement or misappropriation of intellectual property rights of others, or may be infringed or misappropriated by others; risks associated with our non-U.S. operations; risks associated with our ability to effectively hedge exposure to fluctuations in foreign currency exchange rates; the potential for tax legislation initiatives that could adversely affect our tax position and/or challenges to our tax positions in the United States and non-U.S. countries; risks associated with our recruitment and retention of key personnel; risks related to our dependence on third party suppliers; risks inherent with business acquisitions; the potential for losses resulting from asset impairment charges; risks associated with the ongoing adverse financial market environment and uncertainty in global economic conditions; changing political, economic and regulatory influences; government regulation; significant competition and market changes; variations in our quarterly operating results; potential inconsistencies in our sales forecasts compared to actual sales; volatility in the trading price of our common stock; and, our directors' authority to issue preferred stock and the anti-takeover provisions in our corporate governance documents. Additional discussion of these and other risks, uncertainties and factors affecting the Company's business is contained in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial condition or business over time.
CONTACT: Investor Contact: Allan Kells, (816) 201-2445, [email protected] Media Contact: Kelli Christman, (816) 885-4342, [email protected] Cerner's Internet Home Page: www.cerner.com
