Cerner Delivers Strong Revenue and Earnings.Continued Strong Levels of New Business Bookings 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 2006 third quarter that ended Sept. 30, delivering strong levels of new business bookings, revenue, earnings and cash flow. New business bookings in the third quarter were $352.1 million, which is up 17 percent over the third quarter of 2005 bookings of $301.1 million (before a unique large $149.4 million booking in the third quarter of 2005 related to the National Health Service initiative to automate To turn a set of manual steps into an operation that goes by itself. See automation. clinical processes and digitize To convert an image or signal into digital code by scanning, tracing on a graphics tablet or using an analog to digital conversion device. 3D objects can be digitized by a device with a mechanical arm that is moved onto all the corners. medical records in the Southern Cluster of England). Third quarter 2006 revenues increased 17 percent to $345.5 million compared to $294.6 million in the year-ago quarter. On a Generally Accepted Accounting Principals (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) basis, third quarter 2006 net earnings were $26.7 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. Comparably, third quarter 2005 GAAP net earnings were $26.6 million, and diluted earnings per share were $0.33. Third quarter 2006 net earnings and diluted earnings per share reflect 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. Adoption of SFAS 123R reduced third quarter 2006 net earnings and diluted earnings per share by $2.9 million and $0.03, respectively. Third quarter 2005 net earnings included an adjustment that increased net earnings $4.8 million due to a tax benefit from the carry back of a capital loss generated by the sale of Zynx Health Incorporated. Before these items, third quarter 2006 adjusted net earnings were $29.6 million, which is 36 percent higher than the $21.8 million of adjusted net earnings in the third quarter of 2005. Adjusted diluted earnings per share before these items were $0.36 in the third quarter of 2006 compared to $0.27 in the third quarter of 2005. Analysts' consensus estimate for third quarter 2006 adjusted diluted earnings per share before stock options expense was $0.36. Other Third Quarter Highlights: * 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 $52.9 million compared to $46.9 million in the third quarter of 2005. * 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 93 days compared to 98 days in the year-ago quarter. * Total revenue backlog of $2.38 billion, up 21 percent over the year-ago quarter. This is comprised of $1.93 billion of contract backlog and $452.3 million of support and maintenance backlog. * 347 Cerner Millennium([R]) solution implementations were completed. Cerner has now turned on more than 5,800 Cerner Millennium solutions at more than 1,050 client facilities worldwide. "Cerner's performance in the third quarter was strong," 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. "Our record bookings along with strong earnings, revenue and cash flow reflect Cerner's momentum in the rapidly expanding healthcare information technology marketplace. This momentum was recently validated val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. by record attendance of more than 3,300 people from nine countries at Cerner's Health Conference, where hundreds of clients shared real examples of how they are using IT to make healthcare safer, more efficient, and of higher quality. "Our upcoming release of Cerner Millennium 2007 in November will solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. our leadership position in the HIT industry by strengthening what is already the most comprehensive suite of solutions offered by any healthcare IT provider on a common platform." Future Period Guidance The company expects revenue in the fourth quarter of 2006 to be approximately $355 million to $365 million. This equates to 2006 full-year revenue in a range of $1.35 billion and $1.36 billion, reflecting about 17 percent growth over 2005, and higher than the previous range of $1.32 billion to $1.35 billion. Cerner expects adjusted diluted earnings per share before stock options expense in the fourth quarter to be between $0.40 and $0.41, a 1 cent increase from prior expectations. For the full year, Cerner expects adjusted diluted earnings per share of $1.37 to $1.38 before stock options expense, which reflects growth of approximately 26 percent over 2005. The company expects SFAS No. 123R share-based compensation expense to reduce diluted earnings per share in the fourth quarter by approximately $0.04, leading to expected diluted earnings per share between $0.36 and $0.37. The company expects SFAS No. 123R share-based compensation expense to reduce diluted earnings per share for 2006 by approximately $0.15, leading to expected diluted earnings per share of approximately $1.22 to $1.23. Cerner expects new business bookings in the fourth quarter to be between $345 million and $360 million. The mid-point of the bookings guidance reflects 10 percent growth over the record fourth quarter of 2005 bookings of $320.8 million (adjusted for a unique large $65.5 million booking in the fourth quarter of 2005 related to the National Health Service initiative). The company also indicated that current 2007 consensus estimates for adjusted diluted earnings per share of $1.69 before options expense is reasonable and expects SFAS No. 123R share-based compensation expense to reduce diluted earnings per share for 2007 by approximately $0.16. Cerner indicated that consensus estimates for 2007 revenue of $1.53 billion are also reasonable. Earnings Conference Call Cerner will host an earnings conference call to provide additional detail on third quarter results at 3:30 p.m. CT on Oct. 19. The dial-in number for the call is 617-213-8856 with a pass code of Cerner. The replay number is 617-801-6888 (Pass code: 45869833). The rebroadcast of the call will be available from approximately 6:30 p.m. CT, Oct. 19, through 6:30 p.m. CT, Oct. 22. 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. Cerner Corp. is taking the paper chart out of healthcare, eliminating error, variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality and waste in the care process. With more than 1,500 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 "guidance," "expects," "estimates," and "reasonable" 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 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; 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] [TABLE OMITTED] |
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