Printer Friendly


 KANSAS CITY, Mo., Oct. 18 -- Cerner Corp. (NASDAQ: CERN) today reported results for the third quarter ended Sept. 30, 1993. Revenues increased to $32.3 million from $27.8 million. Net earnings increased 37 percent to $4.1 million from $3.0 million in the same quarter last year. Earnings per share increased 33 percent to $.28 per share from $.21 per share.
 For the nine months ended Sept. 30, 1993, revenues increased to $86.3 million from $74.3 million. Net earnings increased 51 percent to $9.9 million from $6.6 million. Earnings per share increased 50 percent to $.69 from $.46 per share.
 Clifford W. Illig, president and chief operating officer, said, "We are pleased with our record third quarter results which keep Cerner firmly on track to have another outstanding year in 1993. As we see it, the most important development in the quarter was the introduction of the Clinton Administration's plan for health care reform which establishes a new framework for health information and, at the same time, strongly endorses Cerner's mission -- automating the process of healthcare.
 Illig continued, "To quote the administration's draft of The American Health Security Act, `The long-term strategy for healthcare information envisions creation of a point of service information system that brings valuable information to consumers, providers, payers and policy makers.' Cerner believes such information will be sourced out of the actual process of delivering care as healthcare providers are pushed to minimize costs and maximize quality, measured in terms of outcomes."
 Illig added, "A critical element for the success of providers under reform will be process automation. In order to achieve this type of automation, information systems must be designed to serve as the infrastructure for healthcare delivery. The process of care delivery has to be managed across the entire spectrum of patient care, and provider networks will have to integrate clinicians, services, facilities and cost management techniques through implementation of standardized protocols for care delivery. For this environment information systems must be available to all care givers. Cerner's patient-focused systems are specifically designed to interactively share and use each patient's information and automate the tasks involved in caring for that patient."
 Illig further added, "With all the changes that are being stimulated by healthcare reform, there will be a premium placed on quality relationships with provider organizations. Consistent with the importance of this trend, Cerner announced during the quarter the acquisition of the leading provider of stand-alone pharmacy information systems, Megasource, Inc. Together with Megasource, Cerner now will have more than 650 provider relationships in place. Specifically, the acquisition will bring over 280 new pharmacy system users to Cerner's current client base and, combined with Cerner's PharmNet sites, will give Cerner the strongest pharmacy product line in the industry. Our increasing profile in pharmacy systems will complement our existing leadership position in laboratory information systems. Laboratory and pharmacy systems are strategic to integrating clinical information about patients. We have experienced substantial success in demonstrating the value of intrarelation to current users of our laboratory and pharmacy systems and expect to experience the same success with the addition of the new pharmacy clients."
 Cerner also achieved a major milestone in the quarter by completing the first phase of its implementation of the full Healthcare Network Architecture (HNA) at Oklahoma Healthcare Corp.'s (OHC) prestigious Baptist Medical Center in Oklahoma City. Instead of adding Cerner systems incrementally, OHC opted to activate a broad system simultaneously and converted seven HNA systems. PathNet laboratory, RadNet radiology, PharmNet pharmacy, MedNet pulmonary medicine, ProNet patient information systems, Cerner's (OCF) Open Clinical Foundation Data Repository and Discern, its expert-based rule system, were activated on July 25 of this year.
 Illig stated, "This is a watershed achievement for both Cerner and OHC. OHC recognized the need to transform its paper-based patient medical records into a simplified electronic data system. This conversion indicates that it is indeed possible to automate and streamline the fundamental phases of the patient care process, resulting in improved quality of care while reducing the costs of that care."
 Illig concluded, "OHC is the latest in a series of important successes for Cerner, all indicative of the evolving healthcare provider model of the future. Over the past year, a breadth of products have come alive that span a continuum of provider settings. These include the HNA concept of intrarelated systems at Children's Medical Center of Dallas, Cerner's OCF and electronic medical record product at Emory University System of Health Care in Atlanta and implementation of a community-wide laboratory information system serving 2.3 million patients for the Kalser Permanente Northern California region. In this evolving and changing healthcare environment, Cerner is positioned to play a major role in the information-based health care system of the future."
 Cerner is the leading developer of patient-focused clinical information systems for the health care industry. All Cerner system designs are based on Healthcare Network Architecture (HNA). Through HNA, Cerner is able to deliver application software products that serve the unique needs of each clinical discipline, while allowing unprecedented management and cross-disciplinary medical applications. Cerner offers products to an international marketplace including hospitals, HMO's, physicians, clinics and reference laboratories.
 Condensed Summary of Operations
 (Unaudited, in thousands, except per share amounts)
 Periods ended Three months Nine months
 Sept. 30 1993 1992 1993 1992
 Revenues $32,334 $27,779 $86,305 $74,256
 Operating earnings 6,901 4,929 16,865 10,995
 Earnings before income
 taxes 6,809 4,870 16,698 10,752
 Income taxes 2,737 1,899 6,751 4,149
 Net earnings 4,072 2,971 9,947 6,603
 Primary earnings per
 share $ .28 $ .21 $ .69 $ .46
 Weighted average shares
 outstanding 14,550 14,373 14,509 14,252
 -0- 10/18/93
 /CONTACT: Clifford W. Illig, president and chief operating officer of Cerner, 816-221-1024/

CO: Cerner Corp. ST: Missouri IN: HEA SU: ERN

TS -- NY083 -- 3570 10/18/93 16:34 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 18, 1993

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters