Cerner Reports Record Bookings and Revenue for the First Quarter; Raises Revenue & EPS Guidance for 2001

Apr 18, 2001, 01:00 ET from Cerner Corporation

    KANSAS CITY, Mo., April 18 /PRNewswire/ -- Cerner Corporation
 (Nasdaq:   CERN) today announced record results for the first quarter ended
 March 31, 2001.  The first quarter diluted earnings per share were $0.17.  The
 First Call consensus analyst earnings per share estimate for the 2001 first
 quarter had been $0.15.  This marks the fifth consecutive quarter in which the
 company has exceeded consensus estimates.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990421/CERNLOGO )
     Cerner also said that it is raising its guidance for earnings per share in
 2001 and is now comfortable with analyst estimates in the range of $0.83 to
 $0.88, up from the previous range of $0.80 to $0.85 and that it is comfortable
 with analysts' revenue estimates for the 2001 year in the range of $490 to
 $500 million, up from previous analyst estimates of $480 to $490 million.  The
 Company also indicated it was comfortable with analyst estimates of $0.18 to
 $0.19 for the second quarter of 2001.  First Call consensus analyst estimates
 for the second quarter had been $0.18.
     Revenues for the first quarter were a record $121.0 million, an increase
 of 39 percent over the $87.1 million for the first quarter of 2000.  Net
 earnings were $6.3 million, compared with $2.4 million for the first quarter
 of 2000.  Diluted earnings per share were $0.17 per share compared with $0.07
 per share in the year-ago quarter.
     Highlights for the first quarter include the following:
 
     * Record new business bookings revenue of $117.2 million vs. $95 million
       in the year-ago quarter
     * Operating margin of 9.4 percent vs. 5.7 percent in the year-ago quarter
     * Record cash collections of $125.0 million, up 18 percent over the
       previous record in the 2000 fourth quarter
     * Strong HNA Millennium(R) implementations -- 97 systems turned on in the
       quarter
 
     Days Sales Outstanding (DSOs) for the quarter were 136 days, down from 156
 days in the year-ago quarter and down sequentially from the prior quarter.
 DSOs reflect the full impact of the ADAC HCIS acquisition which closed in the
 fourth quarter of 2000.  Excluding the impact of the ADAC receivables, DSO's
 would have declined to 133 days.
     "Cerner's record results in the first quarter represent a continuation of
 the momentum that began building in 2000," said Neal Patterson, Cerner's
 chairman and chief executive officer.  "New business bookings revenue
 increased more than 23 percent against the record bookings level established
 in the first quarter of 2000, reflecting what we see as accelerating demand
 for Cerner's industry-leading Millennium solutions.  On a gross margin basis,
 bookings for the first quarter increased 31 percent to $104.6 million as
 compared to $80.1 million in the year-ago quarter.  The strength of our
 backlog and sales pipeline makes us comfortable with increasing earnings and
 revenue estimates for 2001."
     "We also saw our cross-selling strategy deliver substantial results in the
 first quarter," continued Patterson.  "Approximately 70 percent of the
 quarter's deals were sold back into our installed base.  We believe sales into
 the installed base will represent 50 to 70 percent of our business going
 forward.  Our larger client base and expanding market share combine to make
 this possible."
     "Our global organization continued to make excellent progress in the first
 quarter," said Patterson.  "In the UK, Cerner has been selected as supplier of
 choice in what we believe to be the first two National Health Service EPR
 Mandate decisions.  We also completed the successful implementation of the
 first phase of an EPR Level 5 compliant system at an existing UK client.  We
 are the only healthcare technology company that has paperless medical record
 clients both in and outside the U.S., demonstrating our commitment to the
 global market."
     "Implementation of systems remained a strength in the first quarter,"
 remarked Patterson.  "We turned on 97 new Millennium applications, which
 positions us well to meet our 2001 goal of 400.  Today we have approximately
 900 applications in use at 225 sites across 130 clients."
     "We believe that several key elements in our business will continue our
 momentum:  growing our revenues, expanding our operating margins and providing
 for higher levels of revenue visibility," concluded Patterson.  "We expect
 continued success in the market place with major systems contracts driving our
 top-line growth.  In addition, our Cerner Consulting practice for system
 implementation and support services are expected to continue to deliver
 improved operating margins as a result of Millennium conversions and the
 completion of the conversion to a fee-for-service implementation model.  We
 believe that these improvements, combined with internal operating efficiencies
 and Cerner's increasing competitiveness, will produce substantial earnings
 growth in 2001."
     Cerner will host an analyst conference call at 3:30 p.m. CDT on Wednesday,
 April 18, 2001.  The call will be web cast and will be available both live and
 archived on Cerner's web site at www.cerner.com .  Please access the site
 fifteen minutes early to register, download and install any necessary audio
 software.  For those who cannot listen to the live broadcast, replays will be
 made available shortly after the call and will run for two weeks.
     Cerner Corporation (Nasdaq:   CERN) ( www.cerner.com ) is the leading
 supplier of clinical and management information and knowledge systems to more
 than 1,500 healthcare organizations worldwide.  Cerner's mission is to connect
 the appropriate persons, knowledge and resources at the appropriate time and
 location to achieve the optimal health outcome.  The company's vision is to
 improve the health of communities through innovation and investments in
 information technology.  Cerner strives to transform the healthcare delivery
 system by increasing the quality of care, improving efficiencies, eliminating
 medical error and connecting the individual to the system with innovative
 information solutions.  HNA Millennium is Cerner's comprehensive suite of
 solutions that promote personal and community health management by connecting
 consumers, clinicians and healthcare organizations into a streamlined, unified
 single care process.  HNA Millennium applications work on a cohesive platform
 that is open, intelligent and scalable, allowing vital health information to
 be accessed and shared throughout the healthcare system.  Cerner...  we make
 healthcare smarter.  The following are registered trademarks of Cerner:
 Cerner, Cerner's logo, PowerChart Office and HNA Millennium.
 
     This release may contain forward-looking statements that involve a number
 of risks and uncertainties.  It is important to note that any such
 performance, and actual results, financial condition or business could differ
 materially from those expressed in such forward-looking statements.  The words
 "guidance," "comfortable with," "estimates," "believe," "could"," "we see,"
 "positions," "expect," "are expected" and 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:  variations in
 the Company's quarterly operating results, volatility of the Company's stock
 price, market risk of investments, changes in the healthcare industry, length
 of the sales and implementation cycles, changes in technology, significant
 competition, the Company's proprietary technology may be subjected to
 infringement claims or may be infringed upon, regulation of the Company's
 software by the U.S. Food and Drug Administration or other government
 regulation, the possibility of product-related liabilities, possible failures
 or defects in the performance of the Company's software and the possibility
 that the Company's anti-takeover defenses could delay or prevent an
 acquisition of the Company.  Additional discussion of these and other factors
 affecting the company's business and prospects is contained in the company's
 periodic filings with the Securities and Exchange Commission.  The Company
 undertakes no obligation to update or revise forward-looking statements to
 reflect changed assumptions, the occurrence of unanticipated events or changes
 in future operating results, financial condition or business over time.
 
 
                               CERNER CORPORATION
                      CONSOLIDATED STATEMENTS OF EARNINGS
 
                                              Three Months       Three Months
                                                  Ended             Ended
     (In thousands, except per share data)    March 31, 2001     April 1, 2000
 
     Revenue
        System sales                             $80,465            54,077
        Support and maintenance                   34,224            26,524
        Other                                      6,307             6,506
 
               Total revenue                     120,996            87,107
 
     Margin
       System sales                               61,186            40,960
       Support and maintenance                    27,867            21,400
       Other                                       6,205             6,365
 
               Total margin                       95,258            68,725
 
     Operating expenses
        Sales and client service                  50,155            37,324
        Software development                      24,005            19,531
        General and administrative                 9,673             6,935
 
               Total operating expenses           83,833            63,790
 
               Operating earnings                 11,425             4,935
 
        Interest income                            1,236               884
        Interest expense                          (1,848)           (1,833)
        Loss on sale of investment                  (385)                -
 
               Non-operating expense, net           (997)             (949)
 
     Earnings before income taxes                 10,428             3,986
     Income taxes                                 (4,100)           (1,594)
 
     Net Earnings                                 $6,328             2,392
 
     Basic earnings per share                      $0.18              0.07
 
     Basic weighted average shares
      outstanding                                 34,795            33,778
 
     Diluted earnings per share                    $0.17              0.07
 
     Diluted weighted average shares
      outstanding                                 36,765            34,697
 
 
                               CERNER CORPORATION
                          CONSOLIDATED BALANCE SHEETS
 
     (In thousands)                               March 31,        December 30,
                                                    2001              2000
     Assets
 
     Cash and cash equivalents                   $89,409            90,893
     Receivables                                 180,811           188,036
     Inventory                                     2,041             2,174
     Prepaid expenses and other                    9,197             7,393
 
          Total current assets                   281,458           288,496
 
     Property and equipment, net                  81,625            82,234
     Software development costs, net              86,252            83,276
     Intangible assets, net                       21,243            22,227
     Investments, net                             99,410           130,626
     Other assets                                  9,823             9,552
 
 
     Total assets                               $579,811           616,411
 
     Liabilities
 
     Accounts payable                            $15,102            20,532
     Current installments of long-term
      debt                                            56                72
     Deferred revenue                             32,737            40,212
     Income taxes                                 12,347             9,718
     Accrued payroll and tax withholdings         25,390            27,338
     Other accrued expenses                        4,958             4,443
 
          Total current liabilities               90,590           102,315
 
 
     Long-term debt, net                         101,635           102,299
     Deferred income taxes                        46,756            57,430
     Deferred revenue                              9,587            10,650
 
          Total liabilities                      248,568           272,694
 
     Stockholders' Equity
 
     Common stock                                    360               360
     Additional paid-in capital                  193,410           192,715
     Retained earnings                           237,244           230,916
     Treasury stock, at cost (1,201,625
      shares)                                    (20,799)          (20,799)
     Accumulated other comprehensive
      income:
        Foreign currency translation
         adjustment                               (1,516)             (743)
        Unrealized loss on available-for-
         sale equity security
          (net of deferred tax benefit of
           $43,430 in 2001
           and $33,036 in 2000)                  (77,456)          (58,732)
 
          Total stockholders' equity             331,243           343,717
 
 
     Total liabilities and equity               $579,811           616,411
 
 
 

SOURCE Cerner Corporation
    KANSAS CITY, Mo., April 18 /PRNewswire/ -- Cerner Corporation
 (Nasdaq:   CERN) today announced record results for the first quarter ended
 March 31, 2001.  The first quarter diluted earnings per share were $0.17.  The
 First Call consensus analyst earnings per share estimate for the 2001 first
 quarter had been $0.15.  This marks the fifth consecutive quarter in which the
 company has exceeded consensus estimates.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990421/CERNLOGO )
     Cerner also said that it is raising its guidance for earnings per share in
 2001 and is now comfortable with analyst estimates in the range of $0.83 to
 $0.88, up from the previous range of $0.80 to $0.85 and that it is comfortable
 with analysts' revenue estimates for the 2001 year in the range of $490 to
 $500 million, up from previous analyst estimates of $480 to $490 million.  The
 Company also indicated it was comfortable with analyst estimates of $0.18 to
 $0.19 for the second quarter of 2001.  First Call consensus analyst estimates
 for the second quarter had been $0.18.
     Revenues for the first quarter were a record $121.0 million, an increase
 of 39 percent over the $87.1 million for the first quarter of 2000.  Net
 earnings were $6.3 million, compared with $2.4 million for the first quarter
 of 2000.  Diluted earnings per share were $0.17 per share compared with $0.07
 per share in the year-ago quarter.
     Highlights for the first quarter include the following:
 
     * Record new business bookings revenue of $117.2 million vs. $95 million
       in the year-ago quarter
     * Operating margin of 9.4 percent vs. 5.7 percent in the year-ago quarter
     * Record cash collections of $125.0 million, up 18 percent over the
       previous record in the 2000 fourth quarter
     * Strong HNA Millennium(R) implementations -- 97 systems turned on in the
       quarter
 
     Days Sales Outstanding (DSOs) for the quarter were 136 days, down from 156
 days in the year-ago quarter and down sequentially from the prior quarter.
 DSOs reflect the full impact of the ADAC HCIS acquisition which closed in the
 fourth quarter of 2000.  Excluding the impact of the ADAC receivables, DSO's
 would have declined to 133 days.
     "Cerner's record results in the first quarter represent a continuation of
 the momentum that began building in 2000," said Neal Patterson, Cerner's
 chairman and chief executive officer.  "New business bookings revenue
 increased more than 23 percent against the record bookings level established
 in the first quarter of 2000, reflecting what we see as accelerating demand
 for Cerner's industry-leading Millennium solutions.  On a gross margin basis,
 bookings for the first quarter increased 31 percent to $104.6 million as
 compared to $80.1 million in the year-ago quarter.  The strength of our
 backlog and sales pipeline makes us comfortable with increasing earnings and
 revenue estimates for 2001."
     "We also saw our cross-selling strategy deliver substantial results in the
 first quarter," continued Patterson.  "Approximately 70 percent of the
 quarter's deals were sold back into our installed base.  We believe sales into
 the installed base will represent 50 to 70 percent of our business going
 forward.  Our larger client base and expanding market share combine to make
 this possible."
     "Our global organization continued to make excellent progress in the first
 quarter," said Patterson.  "In the UK, Cerner has been selected as supplier of
 choice in what we believe to be the first two National Health Service EPR
 Mandate decisions.  We also completed the successful implementation of the
 first phase of an EPR Level 5 compliant system at an existing UK client.  We
 are the only healthcare technology company that has paperless medical record
 clients both in and outside the U.S., demonstrating our commitment to the
 global market."
     "Implementation of systems remained a strength in the first quarter,"
 remarked Patterson.  "We turned on 97 new Millennium applications, which
 positions us well to meet our 2001 goal of 400.  Today we have approximately
 900 applications in use at 225 sites across 130 clients."
     "We believe that several key elements in our business will continue our
 momentum:  growing our revenues, expanding our operating margins and providing
 for higher levels of revenue visibility," concluded Patterson.  "We expect
 continued success in the market place with major systems contracts driving our
 top-line growth.  In addition, our Cerner Consulting practice for system
 implementation and support services are expected to continue to deliver
 improved operating margins as a result of Millennium conversions and the
 completion of the conversion to a fee-for-service implementation model.  We
 believe that these improvements, combined with internal operating efficiencies
 and Cerner's increasing competitiveness, will produce substantial earnings
 growth in 2001."
     Cerner will host an analyst conference call at 3:30 p.m. CDT on Wednesday,
 April 18, 2001.  The call will be web cast and will be available both live and
 archived on Cerner's web site at www.cerner.com .  Please access the site
 fifteen minutes early to register, download and install any necessary audio
 software.  For those who cannot listen to the live broadcast, replays will be
 made available shortly after the call and will run for two weeks.
     Cerner Corporation (Nasdaq:   CERN) ( www.cerner.com ) is the leading
 supplier of clinical and management information and knowledge systems to more
 than 1,500 healthcare organizations worldwide.  Cerner's mission is to connect
 the appropriate persons, knowledge and resources at the appropriate time and
 location to achieve the optimal health outcome.  The company's vision is to
 improve the health of communities through innovation and investments in
 information technology.  Cerner strives to transform the healthcare delivery
 system by increasing the quality of care, improving efficiencies, eliminating
 medical error and connecting the individual to the system with innovative
 information solutions.  HNA Millennium is Cerner's comprehensive suite of
 solutions that promote personal and community health management by connecting
 consumers, clinicians and healthcare organizations into a streamlined, unified
 single care process.  HNA Millennium applications work on a cohesive platform
 that is open, intelligent and scalable, allowing vital health information to
 be accessed and shared throughout the healthcare system.  Cerner...  we make
 healthcare smarter.  The following are registered trademarks of Cerner:
 Cerner, Cerner's logo, PowerChart Office and HNA Millennium.
 
     This release may contain forward-looking statements that involve a number
 of risks and uncertainties.  It is important to note that any such
 performance, and actual results, financial condition or business could differ
 materially from those expressed in such forward-looking statements.  The words
 "guidance," "comfortable with," "estimates," "believe," "could"," "we see,"
 "positions," "expect," "are expected" and 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:  variations in
 the Company's quarterly operating results, volatility of the Company's stock
 price, market risk of investments, changes in the healthcare industry, length
 of the sales and implementation cycles, changes in technology, significant
 competition, the Company's proprietary technology may be subjected to
 infringement claims or may be infringed upon, regulation of the Company's
 software by the U.S. Food and Drug Administration or other government
 regulation, the possibility of product-related liabilities, possible failures
 or defects in the performance of the Company's software and the possibility
 that the Company's anti-takeover defenses could delay or prevent an
 acquisition of the Company.  Additional discussion of these and other factors
 affecting the company's business and prospects is contained in the company's
 periodic filings with the Securities and Exchange Commission.  The Company
 undertakes no obligation to update or revise forward-looking statements to
 reflect changed assumptions, the occurrence of unanticipated events or changes
 in future operating results, financial condition or business over time.
 
 
                               CERNER CORPORATION
                      CONSOLIDATED STATEMENTS OF EARNINGS
 
                                              Three Months       Three Months
                                                  Ended             Ended
     (In thousands, except per share data)    March 31, 2001     April 1, 2000
 
     Revenue
        System sales                             $80,465            54,077
        Support and maintenance                   34,224            26,524
        Other                                      6,307             6,506
 
               Total revenue                     120,996            87,107
 
     Margin
       System sales                               61,186            40,960
       Support and maintenance                    27,867            21,400
       Other                                       6,205             6,365
 
               Total margin                       95,258            68,725
 
     Operating expenses
        Sales and client service                  50,155            37,324
        Software development                      24,005            19,531
        General and administrative                 9,673             6,935
 
               Total operating expenses           83,833            63,790
 
               Operating earnings                 11,425             4,935
 
        Interest income                            1,236               884
        Interest expense                          (1,848)           (1,833)
        Loss on sale of investment                  (385)                -
 
               Non-operating expense, net           (997)             (949)
 
     Earnings before income taxes                 10,428             3,986
     Income taxes                                 (4,100)           (1,594)
 
     Net Earnings                                 $6,328             2,392
 
     Basic earnings per share                      $0.18              0.07
 
     Basic weighted average shares
      outstanding                                 34,795            33,778
 
     Diluted earnings per share                    $0.17              0.07
 
     Diluted weighted average shares
      outstanding                                 36,765            34,697
 
 
                               CERNER CORPORATION
                          CONSOLIDATED BALANCE SHEETS
 
     (In thousands)                               March 31,        December 30,
                                                    2001              2000
     Assets
 
     Cash and cash equivalents                   $89,409            90,893
     Receivables                                 180,811           188,036
     Inventory                                     2,041             2,174
     Prepaid expenses and other                    9,197             7,393
 
          Total current assets                   281,458           288,496
 
     Property and equipment, net                  81,625            82,234
     Software development costs, net              86,252            83,276
     Intangible assets, net                       21,243            22,227
     Investments, net                             99,410           130,626
     Other assets                                  9,823             9,552
 
 
     Total assets                               $579,811           616,411
 
     Liabilities
 
     Accounts payable                            $15,102            20,532
     Current installments of long-term
      debt                                            56                72
     Deferred revenue                             32,737            40,212
     Income taxes                                 12,347             9,718
     Accrued payroll and tax withholdings         25,390            27,338
     Other accrued expenses                        4,958             4,443
 
          Total current liabilities               90,590           102,315
 
 
     Long-term debt, net                         101,635           102,299
     Deferred income taxes                        46,756            57,430
     Deferred revenue                              9,587            10,650
 
          Total liabilities                      248,568           272,694
 
     Stockholders' Equity
 
     Common stock                                    360               360
     Additional paid-in capital                  193,410           192,715
     Retained earnings                           237,244           230,916
     Treasury stock, at cost (1,201,625
      shares)                                    (20,799)          (20,799)
     Accumulated other comprehensive
      income:
        Foreign currency translation
         adjustment                               (1,516)             (743)
        Unrealized loss on available-for-
         sale equity security
          (net of deferred tax benefit of
           $43,430 in 2001
           and $33,036 in 2000)                  (77,456)          (58,732)
 
          Total stockholders' equity             331,243           343,717
 
 
     Total liabilities and equity               $579,811           616,411
 
 
 SOURCE  Cerner Corporation