Healthcare information service provider Cerner Corp. (CERN), Wednesday reported a rise in profit for the second quarter despite revenues being virtually flat with last year. Earnings for the quarter came in line with Street estimates, while revenues fell short. Cerner also provided its revised forecast for full year 2009, reaffirming earnings guidance and lowering its revenue outlook. The company also issued third quarter earnings forecast in line with the current Street estimates and revenues below analysts' expectations.
Neal Patterson, Co-founder, Chairman and Chief Executive Officer, Cerner said, "We delivered good earnings and cash flow performance in the second quarter despite the economy continuing to have an impact on our revenue levels."
The Kansas City, Missouri-based company's net earnings for the third quarter increased to $44.00 million from $35.30 million in the prior-year quarter.
Net earnings, excluding items increased to $46.00 million or $0.55 per share from $42.5 million or $0.51 per share in the year-ago quarter.
Adjusted earnings, which exclude the impact of accounting pursuant to Statement of Financial Accounting Standards reduced earnings by $2.3 million and earnings per share by $0.03.
On average, 19 analysts polled by Thomson Reuters expected the company to earn $0.55 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.
In the first quarter, the company's net earnings increased to $40.83 million or $0.49 per share from $36.82 million or $0.44 per share in the same quarter a year ago. On an adjusted basis, net earnings were $43.29 million or $0.52 per share, up from $39.05 million or $0.47 per share in the year-earlier quarter
Revenues for the second quarter under review rose modestly to $403.81 million from $402.80 million last year. Nineteen analysts had a consensus revenue estimate of $421.53 million for the quarter.
For the preceding first quarter, revenues grew to $392.32 million from $384.77 million in the same period last year.
System sales for the second quarter dropped to $114.30 million from $120.63 million last year, while support, maintenance and services sales increased to $281.44 million from $271.50 million in the prior-year quarter.
Total operating expenses for the quarter declined to $270.80 million from $277.80 million in the year-ago quarter. Sales and client service for the quarter decreased to $171.63 million from $183.00 million last year.
Operating earnings for the quarter increased to $66.20 million from $53.22 million in the same quarter last year.
Amongst others in the sector, Atlanta, Florida-based, advanced integrated clinical and healthcare software provider Eclipsys Corp. (ECLP), is slated to report its financial results for the second quarter on August 6, 2009. Analysts expect the company to report earnings of $0.12 per share on revenues of $131.51 million for the quarter.
For the first half of 2009, Cerner reported net earnings of $84.60 million, up from $72.10 million in the previous year period. Net loss, excluding items, for first half was $10.55 million or $0.02, compared to net income of $147.72 million or $0.23 per share last year. Total revenues for the year-to-date period decreased to $214.50 million from $236.90 million in the year-ago period.
Looking ahead to the third quarter, Cerner currently expects adjusted earnings before stock options in the range of $0.57 - $0.63 per share, on revenues of $410 million - $430 million. New business bookings for the third quarter is expected to be between $380 million and $420 million.
Analysts currently expect the company to report earnings of $0.63 per share, on revenues of $446.53 million, for the third quarter of fiscal year 2009.
For fiscal year 2009, the company reaffirmed its adjusted earnings before stock options in the range of $2.40 - $2.50 per share. However, Cerner now expects full-year revenues within a range of $1.70 billion - $1.75 billion, compared to earlier issued forecast of $1.75 billion - $1.80 billion.
Analysts currently expect the company to report earnings of $2.43 per share on revenues of $1.73 billion for the full year.
CERN closed Wednesday's regular trading at $65.13, up $0.95 or 1.48%, on a volume of 1.66 million shares on the Nasdaq. In after hours, the stock lost $2.13 or 3.27%, trading at $63.00. In the past 52 weeks, the stock trended in a broad range of $30.37 - $65.99, with a three-month average volume of 1.23 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.