Cerner Delivers Strong Revenue and Earnings Growth.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. -- Cerner Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : 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 2007 first quarter that ended March 31, 2007, delivering strong levels of new business bookings, revenue and earnings growth. Bookings in the first quarter 2007 were $353.0 million, up 35 percent over the year-ago quarter and a record for the first quarter. First quarter 2007 revenue increased 14 percent to $365.9 million compared to $321.2 million in the year-ago quarter. On a Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) basis, first quarter 2007 net earnings were $27.6 million, and 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 $0.33. First quarter 2006 GAAP net earnings were $20.1 million and diluted earnings per share were $0.25. Adjusted first quarter 2007 net earnings were $29.9 million, which is 30 percent higher than the $23.0 million of adjusted net earnings in the first quarter of 2006. Adjusted diluted earnings per share were $0.36 in the first quarter of 2007 compared to $0.28 in the first quarter of 2006. Analysts' consensus estimate for first quarter 2007 adjusted diluted earnings per share was $0.35. Adjusted first quarter 2007 and 2006 net earnings and diluted earnings per share exclude the impact of adopting Statement of Financial Accounting Standards (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ) No. 123R, Share-Based Payment, which requires the expensing of stock options. The adoption of SFAS 123R reduced first quarter 2007 net earnings and diluted earnings per share by $2.3 million and $0.03, respectively, and reduced first quarter 2006 net earnings and diluted earnings per share by $2.9 million and $0.03, respectively. Other First Quarter Highlights: * Cash collections of $395 million and 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. of $43 million. * Days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). of 89 days compared to 91 days in the year-ago quarter. * Total revenue backlog of $2.77 billion, up 27 percent over the year-ago quarter. This is comprised of $2.28 billion of contract backlog and $490 million of support and maintenance backlog. * 308 Cerner Millennium([R]) solution implementations were completed. Cerner has now turned on more than 6,400 Cerner Millennium solutions at more than 1,100 client facilities worldwide. "Cerner's first quarter results reflect continued strong execution across the globe," said Neal Patterson Neal L. Patterson is CEO of Cerner Corporation, a Kansas City-based medical software corporation. Cerner was founded in 1979 by Patterson with Paul Gorup and Cliff Illig. Patterson was featured in a USA Today , Cerner co-founder, chairman and chief executive officer. "This execution is evidenced by our record first quarter bookings, and strong revenue growth, margin expansion and earnings growth. "Cerner's proven execution and ability to deliver predictable results to our clients at a predictable cost continues to distinguish us in the marketplace. We also remain focused on initiatives designed to drive down the total cost of ownership for our clients while increasing the value created. These initiatives should further differentiate Cerner and bolster This article is about the pillow called a bolster. For other meanings of the word "bolster", see bolster (disambiguation). A bolster (etymology: Middle English, derived from Old English, and before that the Germanic word bulgstraz our leadership position in the healthcare information technology market." Future Period Guidance The company expects revenue in the second quarter of 2007 to be approximately $370 million to $380 million. For the year 2007, Cerner expects revenue between $1.54 billion and $1.57 billion, or 12 to 14 percent over 2006. Cerner expects adjusted diluted earnings per share before stock options expense in the second quarter to be between $0.40 and $0.41. The company expects SFAS No. 123R share-based compensation expense to reduce diluted earnings per share in the second quarter by approximately $0.04, leading to expected diluted earnings per share between $0.36 and $0.37. For the full year 2007, Cerner expects adjusted diluted earnings per share before stock options expense to grow in the mid-twenty percent range. This expectation is consistent with EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. before options expense in the range of $1.72, which is 3 cents higher than the $1.69 consensus at the time the Company last provided guidance. The company expects SFAS No. 123R share-based compensation expense to reduce diluted earnings per share for 2007 by approximately $0.15 to $0.16. Cerner expects new business bookings in the second quarter of 2007 to be between $340 million and $360 million, with the midpoint mid·point n. 1. Mathematics The point of a line segment or curvilinear arc that divides it into two parts of the same length. 2. A position midway between two extremes. of this range reflecting 12 percent growth over second quarter of 2006 bookings. Earnings Conference Call Cerner will host an earnings conference call to provide additional detail on first quarter results at 3:30 p.m. CT on April 19. The dial-in number for the conference call is 617-786-2960; the passcode is Cerner. The company recommends accessing the call 15 minutes early for registration. The rebroadcast of the call will be available from 5:30 p.m. CT, April 19, through 11:59 p.m. CT, April 22. The dial-in number for the rebroadcast is 617-801-6888; the passcode is 78369267. An audio webcast will be available both live and archived on Cerner's Web site at www.cerner.com under the About Cerner section (click Investors, then Presentations and Webcasts). A copy of the script used during the call will also be available at the same section of www.cerner.com. About Cerner Cerner Corp. is taking the paper chart out of healthcare, eliminating error, variance and waste in the care process. With more than 6,000 clients worldwide, Cerner is the leading supplier of healthcare information technology. The following are trademarks of Cerner: Cerner, Cerner Millennium and Cerner's logo. (NASDAQ: CERN), www.cerner.com This release contains 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, and actual results, financial condition or business could differ materially from those expressed in such forward-looking statements. The words "continues," "initiatives," "should," "guidance," "expects," and "continues" 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 INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. at our data centers or client support facilities; our proprietary technology may be subjected to infringement claims or may be infringed upon; risks associated with our global operations Global Operations is a first-person shooter computer game developed by Barking Dog Studios and published by both Crave Entertainment and Electronic Arts. It was released in March of 2002, following its public multiplayer beta version which contained only the Quebec map. ; recruitment and retention of key personnel; risks related to third party suppliers; risks inherent with business acquisitions; changing political, economic and regulatory influences; government regulation; significant competition and market changes; variations in our quarterly operating results; and potential inconsistencies in our sales forecasts Sales forecast A key input to a firm's financial planning process. External sales forecasts are based on historical experience, statistical analysis, and consideration of various macroeconomic factors. compared to actual sales. Additional discussion of these and other 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. [TABLE OMITTED] [TABLE OMITTED] |
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