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CERNER REPORTS SECOND QUARTER RESULTS

 KANSAS CITY, Mo., July 21 /PRNewswire/ -- Cerner Corp. (NASDAQ: CERN) today reported results for the second quarter ended June 30, 1993. Revenues increased 13 percent to $29.8 million from $26.3 million. Net earnings increased 52 percent to $3.3 million from $2.2 million in the year ago quarter. Earnings per share increased 53 percent to $.23 per share from $.15 per share.
 For the six months ended June 30, 1993, revenues increased 16 percent to $54.0 million from $46.5 million. Net earnings increased 62 percent to $5.9 million from $3.6 million. Earnings per share increased 58 percent to $.41 from $.26 per share.
 Clifford W. Illig, president and chief operating officer, said, "This was an excellent quarter for Cerner, and the results were all the more impressive compared to the unusually strong performance in the year ago quarter. Sales of Cerner's patient-focused clinical systems showed excellent breadth in the quarter. Margins continued to be strong. Sales of both stand-alone and enterprise-wide systems continue to reach into new and different types of markets and are underscored by a strong contribution from international in this quarter in which we opened two new countries, Scotland and Germany."
 Illig commented, "Particularly notable in the quarter was the balance between new contract activity on stand-alone as well as enterprise-wide clinical systems. Sales of stand-alone systems were led by our PathNet laboratory systems products. RadNet radiology and PharmNet pharmacy systems also recorded strong sales, and three agreements incorporating Cerner's comprehensive Healthcare Network Architecture (HNA) solution for enterprise-wide clinical information management were signed during the quarter."
 Illig continued, "Record contract bookings were recorded in the quarter and, as a result, backlog reached an all-time high of $99.8 million. The magnitude of the contributions from the existing client base, which stands at 346 clients worldwide at June 30, also is reflected in the strength of the second quarter and six months performance. The company generated incremental hardware and software sales to existing clients of $6.0 million for the quarter and $8.9 million for the six months which contributed $2.5 million in gross profits for the quarter and $3.9 million for the six months. Revenues and gross profits from the company's recurring revenue streams increased 24 percent and 33 percent, respectively, over last year's second quarter and were up 24 percent and 34 percent, respectively, for the six months."
 Illig stated, "Three important agreements were announced during the quarter, two internationally and one domestically. One agreement was signed with Health Care International (Scotland) Ltd. (HCI), located in Clydebank, Scotland, to implement the full suite of Cerner's HNA software products. HCI engaged in a thorough competitive evaluation, looking for a solution that focused on quality care, efficiency and computer-based patient records. One of the key objectives established by HCI was to implement a complete clinical information system capable of thoroughly automating the fundamental processes of delivering patient care.
 "A second agreement, which will eventually result in the implementation of a wide array of in German. The project's first phase, which involves the implementation of Cerner's PathNet laboratory information system, will begin immediately and is expected to be completed by the end of the year. Chemnitz provides Cerner with a key location where Cerner can demonstrate HNA to other European healthcare organizations that are beginning to recognize the importance of clinical information systems to manage costs while enhancing the quality of patient care."
 Illig further commented, "Cerner also signed an agreement with the All Saints Healthcare Group in Racine, Wis., to implement a number of the company's HNA software applications. This agreement particularly is significant in that it demonstrates a growing trend among provider institutions to develop an information management strategy that encompasses multiple facilities across an entire local health system and that is capable of remaining abreast of advancements in healthcare reform. The agreement also demonstrates Cerner's ability to take existing stand-alone systems clients and upgrade them into a broader set of interrelated clinical applications built around a common architecture.
 "It is important to note," Illig added, "that the key here is that buyers, whether stand-alone or enterprise-wide, are increasingly focused on using clinical information systems to achieve greater cost efficiencies and quality improvements in the delivery of care."
 Illig concluded, "We believe our six months' results position Cerner to have another solid year and establishes a strong foundation for the 1994 year. Cerner's patient-focused clinical systems clearly are attracting an expanding group of potential buyers. Also, the increasing diversification of the company's clients across the in-patient, ambulatory, system-wide and community settings, both domestically and internationally, clearly demonstrates Cerner's emerging worldwide position and the company's ability to meet the increasingly demanding and complex needs of the healthcare market place."
 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, HMOs, clinics and reference laboratories.
 CERNER CORP. AND SUBSIDIARIES
 Condensed Summary Of Operations
 (Unaudited, in thousands, except per share amounts)
 Three Months Six Months
 Period ended June 30, 1993 1992 1993 1992
 Revenues $29,834 $26,303 $53,971 $46,477
 Operating
 earnings 5,594 3,637 9,964 6,066
 Earnings before
 income taxes 5,568 3,534 9,889 5,882
 Income taxes 2,254 1,358 4,014 2,250
 Net earnings 3,314 2,176 5,875 3,632
 Primary earnings
 per share $.23 $.15 $.41 $.26
 Weighted average
 shares
 outstanding 14,460 14,227 14,485 14,150
 -0- 7/21/93
 /CONTACT: Clifford W. Illig, president and COO of Cerner Corp., 816-221-1024/
 (CERN)


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

MP -- NY099 -- 4160 07/21/93 16:55 EDT
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Publication:PR Newswire
Date:Jul 21, 1993
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