Cerner bookings hit record high in 2nd quarter
- Cerner’s Q2 bookings hit an all-time high at $1.64 billion, up 16% from $1.4 billion during the same period a year ago.
- U.S. revenue climbed 6% to $1.29 billion, compared with $1.22 billion in the second quarter of 2016. GAAP net earnings were $179.7 million versus $166.5 million the previous year.
- Revenue from outside the U.S was not as strong, falling 5% due to currency fluctuations and a soft market for technology resales, Cerner CFO Marc Naughton said during an earnings call.
“We are pleased with our execution in the second quarter, which included all key metrics being within or above our targeted ranges,” Cerner President Zane Burke said, adding he was also pleased with the company’s competitiveness.
Burke also touched on Cerner’s selection to replace the U.S. Veterans Administration’s (VA) homegrown EHR, VistA. “We’re working closely with the VA on scoping the full work effort,” he said. “We’re in the process of building our team and selecting partners.” A formal contract is expected by year’s end.
Naughton noted the company has nearly concluded its succession planning to replace the late CEO Neal Patterson, who died last month.
Cerner expects full year 2017 revenue of $5.2 billion to $5.3 billion.
Both athenahealth and eClinicalWorks had good second quarters as well. Athena reported 15% revenue growth over the 2016 period, with a GAAP operating income of $12.2 million. Net income was $9.9 million, versus a net income loss of $1.9 million a year ago.
The strong showing is the first since activist investor Elliott Management revealed a 9.2% economic interest in Athena. Since then, the company’s stock has climbed steadily and speculation has grown about a possible acquisition.
Meanwhile, eClinicalWorks reported revenues of $120 million across its EHR, population health management and patient engagement market segments and added over 3,000 providers to its network during the quarter. June was the company’s strongest sales month this year with 1,000 providers purchasing its EHR that month.
For eClinicalWorks, the Q2 report was a chance to focus attention on the EHR vendor’s achievements and away from its $155 million settlement earlier this year on False Claims Act allegations.
The strong numbers could be a sign that providers are looking more and more to invest in their EHR technology. Government contracts such as the latest between Cerner and the VA could also prove lucrative. It will certainly be a space to watch, particularly if and when uncertainty surrounding ACA repeal dies down.
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