OREANDA-NEWS. August 03, 2016. Cerner Corporation (Nasdaq: CERN) today announced results for the 2016 second quarter that ended July 2, 2016.

Bookings in the second quarter of 2016 were \\$1.40 billion, an increase of 9 percent compared to \\$1.29 billion in the second quarter of 2015.

Second quarter revenue was \\$1.216 billion, an increase of 8 percent compared to \\$1.126 billion in the second quarter of 2015.

On a U.S. Generally Accepted Accounting Principles (GAAP) basis, second quarter 2016 net earnings were \\$166.5 million and diluted earnings per share were \\$0.48. Second quarter 2015 GAAP net earnings were \\$115.0 million and diluted earnings per share were \\$0.33.

Adjusted Net Earnings for second quarter 2016 were \\$199.2 million, compared to \\$183.0 million of Adjusted Net Earnings in the second quarter of 2015. Adjusted Diluted Earnings Per Share were \\$0.58 in the second quarter of 2016, an increase of 12 percent compared to \\$0.52 of Adjusted Diluted Earnings Per Share in the year-ago quarter. Analysts’ consensus estimate for second quarter 2016 Adjusted Diluted Earnings Per Share was \\$0.57.

Adjusted Net Earnings and Adjusted Diluted Earnings Per Share are not recognized terms under GAAP. These non-GAAP financial measures should not be substituted for GAAP net earnings or GAAP diluted earnings per share, respectively, as measures of Cerner’s performance, but instead should be utilized as supplemental measures of financial performance in evaluating our business. Please see the accompanying schedule, titled “Reconciliation of GAAP Results to Non-GAAP Results,” where our non-GAAP financial measures are defined and reconciled to the most comparable GAAP measures.

Other 2016 Second Quarter Highlights:

  • Second quarter operating cash flow of \\$254.9 million. 
  • Second quarter free cash flow of \\$56.9 million. Free cash flow is a non-GAAP financial measure defined as GAAP cash flows from operating activities less capital purchases and capitalized software development costs. Please see the accompanying schedule, titled “Reconciliation of GAAP Results to Non-GAAP Results.” 
  • Second quarter days sales outstanding of 74 days, down from 81 days in the year-ago period. 
  • Total backlog of \\$15.0 billion, up 13 percent over the year-ago quarter.

“Cerner’s strong second quarter results reflect good execution and competitiveness in the U.S. and abroad,” said Zane Burke, Cerner President. “We continued to gain share in what remains an active Electronic Health Record replacement market, while also having strong sales of revenue cycle and population health solutions that help our clients navigate the rapidly evolving reimbursement landscape.”

Future Period Guidance

Cerner currently expects:

  • Third quarter 2016 revenue between \\$1.20 billion and \\$1.275 billion. 
  • Full year 2016 revenue between \\$4.9 billion and \\$5.0 billion. 
  • Third quarter 2016 Adjusted Diluted Earnings Per Share between \\$0.59 and \\$0.61. 
  • Full year 2016 Adjusted Diluted Earnings Per Share between \\$2.30 and \\$2.40. 
  • Third quarter 2016 new business bookings between \\$1.45 billion and \\$1.60 billion.

Earnings Conference Call

Cerner will host an earnings conference call to provide additional detail on the Company’s results and outlook at 3:30 p.m. CT on August 2. On the call, Cerner will discuss its second quarter 2016 results and answer questions from the investment community. The call may also include discussion of Cerner developments, and forward-looking and other material information about business and financial matters. The dial-in number for the conference call is (678)-509-7542; the passcode is Cerner. Cerner recommends joining the call 15 minutes early for registration. The re-broadcast of the call will be available from 6:30 p.m. CT, August 2 through 11:59 p.m. CT, August 5. The dial-in number for the re-broadcast is (855)-859-2056; the passcode is 48082875. An audio webcast will be available live and archived on Cerner’s website at www.cerner.com under the About Cerner section (click Investor Relations, then Presentations and Webcasts).

About Cerner

Cerner’s health information technologies connect people, information and systems at more than 20,000 facilities worldwide. Recognized for innovation, Cerner solutions assist clinicians in making care decisions and enable organizations to manage the health of populations. The company also offers an integrated clinical and financial system to help health care organizations manage revenue, as well as a wide range of services to support clients’ clinical, financial and operational needs. Cerner’s mission is to contribute to the systemic improvement of health care delivery and the health of communities. For more information about Cerner, visit cerner.com, read our blog at cerner.com/blog, connect with us on Twitter at twitter.com/cerner and on Facebook at facebook.com/cerner. Our website, blog, Twitter account and Facebook page contain a significant amount of information about Cerner, including financial and other information for investors.

Certain trademarks, service marks and logos set forth herein are property of Cerner Corporation and/or its subsidiaries. All other non-Cerner marks are the property of their respective owners.

All statements in this press release that do not directly and exclusively relate to historical facts constitute forward-looking statements. These forward-looking statements are based on the current beliefs, expectations and assumptions of Cerner's management with respect to future events and are subject to a number of significant risks and uncertainties. It is important to note that Cerner's performance, and actual results, financial condition or business could differ materially from those expressed in such forward-looking statements. The words “expects”, “guidance”, “position”, “believe”, “estimate”, “opportunity” 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 at our data centers or client support facilities; the possibility of increased expenses, exposure to claims and regulatory actions and reputational harm associated with a cyberattack or other breach in our IT security; our proprietary technology may be subject to claims for infringement or misappropriation of intellectual property rights of others, or may be infringed or misappropriated by others; material adverse resolution of legal proceedings; risks associated with our global operations; risks associated with fluctuations in foreign currency exchange rates; the potential for tax legislation initiatives that could adversely affect our tax position and/or challenges to our tax positions in the U.S. and non-U.S. countries; risks associated with our recruitment and retention of key personnel; risks related to our dependence on third party suppliers; difficulties and operational and financial risks associated with successfully completing the integration of the Cerner Health Services (formerly Siemens Health Services) business into our business or the failure to realize the synergies and other benefits expected from the acquisition; risks inherent with business acquisitions and combinations and the integration thereof; the potential for losses resulting from asset impairment charges; risks associated with volatility and disruption resulting from global economic or market conditions; managing growth in the new markets in which we offer solutions, health care devices or services; continuing to incur significant expenses relating to the integration of the Cerner Health Services (formerly Siemens Health Services) business into Cerner; risks inherent in contracting with government clients; risks associated with our outstanding and future indebtedness, such as compliance with restrictive covenants, which may limit our flexibility to operate our business; changing political, economic, regulatory and judicial influences, which could impact the purchasing practices and operations of our clients and increase costs to deliver compliant solutions and services; government regulation; significant competition and our ability to respond to market changes and changing technologies; variations in our quarterly operating results; potential inconsistencies in our sales forecasts compared to actual sales; volatility in the trading price of our common stock and the timing and volume of market activity; and our directors’ authority to issue preferred stock and the anti-takeover provisions in our corporate governance documents. Additional discussion of these and other risks, uncertainties and factors affecting Cerner's business is contained in Cerner's filings with the Securities and Exchange Commission. The reader should not place undue reliance on forward-looking statements, since the statements speak only as of the date that they are made. Except as required by law, Cerner undertakes no obligation to update forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events, or changes in our business, results of operations or financial condition over time.