Cerner boosts 1Q revenue but falls short of projections
Cerner Corporation released its earnings report for the first quarter of 2016. The health IT company had a bit of good news—revenue increased when compared to the first quarter of 2015—along with a bit of bad—revenue fell short of projections and bookings remained flat.
Cerner reported overall revenue increased by 14 percent versus 2015, reaching $1.14 billion from $996 million. But due to declining margins in technology resale value, Cerner fell $10 million short of its projections for the quarter ending on April 2.
Cerner President Zane Burke pointed to growth in software, subscriptions and services as reasons for optimism.
"Our first-quarter results reflect a good start to the year,” Cerner President Zane Burke said in a release. “We continue to have great success at gaining new clients, which is a reflection of a robust replacement market and our competitiveness."
Cerner projects second quarter revenue between $1.175 and $1.25 billion and full-year revenue between $4.9 billion and $5.1 billion, consistent with last year’s figures.
In the last month, Cerner has reached a number of agreements with healthcare providers, including Centra, Universal Health Services and Tift Regional Health System, to implement various IT systems.
Nicholas joined TriMed in 2016 as the managing editor of the Chicago office. After receiving his master’s from Roosevelt University, he worked in various writing/editing roles for magazines ranging in topic from billiards to metallurgy. Currently on Chicago’s north side, Nicholas keeps busy by running, reading and talking to his two cats.