Cerner Corporation Announces Strong 2000 First-Quarter Results and Record First-Quarter New Business Bookings.Business Editors KANSAS CITY Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Mo.--(BW HealthWire)--April 19, 2000 Cerner Cerner Corporation (NYSE: CERN) is an international IT corporation in the healthcare industry with more than 7,700 employees. As of June 2006, approximately 1,900 associates in the United States and 300 associates in India were involved full-time in the software development Corporation (Nasdaq: CERN CERN or European Organization for Nuclear Research, nuclear and particle physics research center straddling the French-Swiss border W of Geneva, Switzerland. ) today announced results for the first quarter ended April 1, 2000. Revenues were $87.1 million as compared with $86.7 million for the year ago quarter. Net earnings were $2.4 million, compared with $2.8 million for the first quarter of 1999. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.07 per share compared with $0.08 per share in the year ago quarter, in line with the guidance the company provided in a release on April 7, 2000. Earnings per share of $.07 exceeded both the April 7th First Call analyst consensus estimate of $.03 per share and the high end of the First Call range on that date of $.06 per share. New business bookings for the first quarter of 2000 totaled $95.0 million in revenues and $80.1 million in margin, as compared with the $62.5 million in revenue and $50.1 million in margin for the first quarter of 1999. This represents a first-quarter record and is the second-highest bookings quarter in the company's history. Operational metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. were also strong. Gross margin was 79%, reflecting a larger mix of services and software in the quarter. Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. for the quarter was $26.6 million, free cash flow was a record $18.0 million and cash collections were a record $104.0 million. Day's sales outstanding for the quarter decreased from 164 days in the fourth quarter to 156 days. Total revenue backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. was $535.7 million, up 14% over the year ago quarter. Neal L. Patterson Patterson, family of American journalists. Robert Wilson Patterson, 1850–1910, b. Chicago, grad. Williams, 1871, became (1871) a reporter on the Chicago Times and after 1873 was attached to the Chicago Tribune. , Chairman and Chief Executive Officer, said, "We are very pleased with our strong first quarter bookings performance and believe it reflects the success of our HNA HNA Hereditary Neuralgic Amyotrophy HNA Hawaii Nurses Association HNA High North Alliance HNA Morioka, Japan - Hanamaki (Airport Code) HNA Hospice Nurses Association (now Hospice and Palliative Nurses Association) Millennium millennium [Lat.,=1,000 years], the period of 1,000 years in which, according to some schools of Christian eschatology, Christ will reign again gloriously on earth. Belief in the millennium, based on Rev. 20, has recurred in Christianity since the earliest times. technology, effective execution of our sales efforts and an appreciation by the marketplace of the ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). opportunities created by an investment in Cerner applications. We have a strong sales pipeline and are seeing an increase in expressed demand for our applications as measured by requests for proposals, on-site on-site adj. Done or located at the site, as of a particular activity: on-site monitoring of a production run; an on-site film shoot. demonstrations and reference site visits. All of these activities are at record levels." "Early last year we indicated that 1999 would be unpredictable due to the impact of Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 and the Balanced Budget Balanced budget A budget in which the income equals expenditure. See: budget. balanced budget A budget in which the expenditures incurred during a given period are matched by revenues. Act (BBA BBA abbr. Bachelor of Business Administration )," Patterson continued. "With Y2K over, the impact of the BBA better understood by the healthcare industry and HNA Millennium's proven strength, we believe that 2000 will provide a more predictable environment for Cerner. While many industry observers have said that 2000 will be a year of relatively slow growth in the overall healthcare information technology marketplace, we are seeing an increased demand for clinical solutions. This demand, along with Cerner's enhanced competitiveness with HNA Millennium, will allow us to grow our business significantly in 2000. Our first quarter results reflect this increased demand." Cerner will also host an analyst conference call at a revised time of 12:00 p.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT on Wednesday Wednesday: see week. , April 19, 2000. The call will be webcast on StreetFusion (www.streetfusion.com), Vcall (www.vcall.com) and StreetEvents (www.streetevents.com). Please access any of these sites fifteen minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. For those who cannot listen to the live broadcast, replays will be made available shortly after the call on all three services and will run for two weeks. Cerner is a trademark of Cerner Corporation. Any and all other trademarks listed herein are the property of their respective owners. Cerner Corporation (www.cerner.com) is the leading supplier of clinical and management information and knowledge systems to more than 1,000 healthcare organizations worldwide. Cerner's mission is to connect the appropriate persons, knowledge, and resources at the appropriate time and location to achieve the optimal health outcome. Cerner's vision of proactive healthcare management drives innovation today, while creating a foundation for tomorrow's healthy populations. With HNA Millennium, Cerner has developed a comprehensive suite of solutions that promote personal and community health management by providing the link between individuals and the care process. HNA Millennium applications work on a cohesive cohesive, n the capability to cohere or stick together to form a mass. platform that is open, intelligent and scalable. This allows for communication, access, and data to be shared throughout the healthcare system. This release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a number of risks and uncertainties. It is important to note that the company's performance, financial condition or business could differ materially from those expressed in such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: variations in the Company's quarterly operating results, volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the of the Company's stock price, market risk of investments, changes in the healthcare industry, significant competition, the Company's proprietary technology may be subjected to infringement The encroachment, breach, or violation of a right, law, regulation, or contract. The term is most frequently used in reference to the invasion of rights secured by Copyright, patent, or trademark. claims or may be infringed upon, regulation of the Company's software by the U.S. Food and Drug Administration or other government regulation, the possibility of product-related liabilities, possible failures or defects in the performance of the Company's software, the possibility that the Company's anti-takeover defenses Noun 1. anti-takeover defense - resistance to or defense against a hostile takeover opposition, resistance - the action of opposing something that you disapprove or disagree with; "he encountered a general feeling of resistance from many citizens"; "despite could delay or prevent an acquisition of the Company and uncertainties related to the Year 2000 transition. Additional discussion of these and other factors affecting the company's business is contained in the company's 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.
Cerner Corporation
Consolidated Statements of Earnings
Three Months Three Months
Ended Ended
(In thousands, except April 1, 2000 April 3, 1999
per share data) ----------------- -----------------
Revenue
System sales $ 54,077 60,813
Support and maintenance 26,524 22,365
Other 6,506 3,565
----------------- -----------------
Total revenue 87,107 86,743
Margin
System sales 40,960 42,370
Support and maintenance 21,400 17,497
Other 6,365 3,308
----------------- -----------------
Total margin 68,725 63,175
----------------- -----------------
Operating expenses
Sales and client service 37,324 34,103
Software development 19,531 17,526
General and administrative 6,935 6,672
----------------- -----------------
Total operating expenses 63,790 58,301
----------------- -----------------
Operating earnings 4,935 4,874
Interest income 884 292
Interest expense (1,833) (623)
----------------- ------------------
Interest expense, net (949) (331)
Earnings before income taxes 3,986 4,543
Income taxes (1,594) (1,726)
----------------- ------------------
Net earnings $ 2,392 2,817
================= ==================
Basic earnings per share $ 0.07 0.08
================= ==================
Basic weighted average shares
outstanding 33,778 33,559
Diluted earnings per share 0.07 0.08
================= ==================
Diluted weighted average
shares outstanding 34,697 33,923
Cerner Corporation
Consolidated Balance Sheets
(In thousands) April 1, January 1,
2000 2000
------------- ------------
Assets
Cash and cash equivalents $ 93,672 75,677
Receivables 148,763 161,174
Inventory 1,091 1,262
Prepaid expenses and other 4,268 4,316
------------- ------------
Total current assets 247,794 242,429
Property and equipment, net 76,747 77,938
Software development costs, net 74,167 71,007
Intangible assets, net 7,106 7,511
Investments, net 310,489 252,123
Other assets 11,553 9,883
------------- ------------
Total assets $ 727,856 660,891
============= ============
Liabilities
Accounts payable $ 21,653 20,261
Deferred revenue 25,270 21,245
Income taxes 8,047 10,987
Accrued payroll and tax withholdings 19,050 17,241
Other accrued expenses 3,528 2,642
------------- ------------
Total current liabilities 77,548 72,376
------------- ------------
Long-term debt, net 100,000 100,000
Deferred income taxes 115,973 93,578
Deferred revenue 15,000 16,000
------------- ------------
Total liabilities 308,521 281,954
Stockholders' Equity
Common stock 350 349
Additional paid-in capital 167,637 166,735
Retained earnings 128,043 125,651
Treasury stock, at cost (1,201,610
shares in 2000 and
1,201,518 shares in 1999) (20,799) (20,796)
Accumulated other comprehensive income:
Foreign currency translation
adjustment (254) 23
Unrealized gain on available-for-sale
equity securities (net of deferred
tax liability of $81,201 in 2000
and $59,806 in 1999) 144,358 106,975
------------- ------------
Total stockholders' equity 419,335 378,937
------------- ------------
Total liabilities and equity $ 727,856 660,891
============= ============
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