McKesson's Q1 income up 3%
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| Image source: McKesson |
McKesson experienced a 3 percent increase in net income, to $298 million, in this fiscal first quarter, compared with the year-ago fiscal first quarter, according to the San Francisco-based company.
Its distribution solutions revenues were up 3 percent in the first quarter. U.S. pharmaceutical distribution revenues were up 2 percent for the quarter, reflecting market growth adjusted for mix of business, said McKesson, which said it's seeing a shift of revenues to direct store delivery from sales to customers’ warehouses. In the first quarter, distribution solutions gross profit of $1.07 million improved 12 percent compared with the first quarter a year ago.
In technology solutions, revenues were up 2 percent for the quarter. Services revenues grew 1 percent, reflecting higher software maintenance partially offset by lower implementation revenues, according to the company. However, its implementation revenues were down due to longer installation cycles associated with the sale of more complex enterprise revenue management and clinical software technologies. Software revenues were up 4 percent and hardware revenues were up 21 percent.
“We are pleased that the Department of Health and Human Services released the final rules for meaningful use and certification standards of EHR systems under the Medicare and Medicaid incentive programs,” said John H. Hammergren, chairman and CEO of McKesson. “Providers now have the flexibility to achieve meaningful use by taking different paths to implementing an EHR system based on their needs and priorities, which we believe is critical to broad-based adoption.”