Cerner Corp. (CERN, Financial) filed Quarterly Report for the period ended 2010-07-03.
Cerner Corp. has a market cap of $6.37 billion; its shares were traded at around $77.53 with a P/E ratio of 32.3 and P/S ratio of 3.8. Cerner Corp. had an annual average earning growth of 21.5% over the past 10 years. GuruFocus rated Cerner Corp. the business predictability rank of 3-star.CERN is in the portfolios of Edward Owens of Vanguard Health Care Fund, Manning & Napier Advisors, Inc, Richard Aster Jr of Meridian Fund, PRIMECAP Management, RS Investment Management, Jeremy Grantham of GMO LLC, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.
The Company delivered strong levels of bookings, revenues, earnings and cash flows in the second quarter of 2010. New business bookings revenue, which reflects the value of executed contracts for software, hardware and professional services and managed services, was $467.8 million in the second quarter of 2010, which was an increase of 19% compared to $394.0 million in the second quarter of 2009. Revenues for the second quarter of 2010 increased 13% to $456.0 million compared to $403.8 million in the year-ago quarter. The year-over-year increase in revenue in the second quarter reflects improved economic conditions and demand driven by the stimulus incentives.
Second quarter 2010 net earnings were $55.5 million and diluted earnings per share were $0.65. Second quarter 2009 net earnings were $43.7 million and diluted earnings per share were $0.52. Second quarter 2010 and 2009 net earnings and diluted earnings per share reflect the impact of shared-based compensation expense. Share-based compensation expense reduced second quarter 2010 net earnings and diluted earnings per share by $3.7 million and $0.04, respectively, and second quarter 2009 earnings and diluted earnings per share by $2.3 million and $0.03, respectively.
We had strong cash collections of receivables of $447.0 million in the second quarter of 2010 compared to $436.0 million in the second quarter of 2009. Days sales outstanding decreased to 88 days in the second quarter of 2010 compared to 89 days in the first quarter of 2010 and 100 days in the second quarter of 2009. The majority of the year-over-year decline is driven by the reclassification of our Fujitsu receivable to other long term assets during the fourth quarter of 2009, which is not included in our days sales outstanding calculation. Operating cash flows for the second quarter of 2010 were strong at $110.2 million compared to $67.9 million in the second quarter of 2009.
Revenues increased 13% to $456.0 million for the second quarter 2010 from $403.8 million for the same period in 2009.
Total operating expenses increased 8% to $291.4 million in the second quarter of 2010, compared with $270.8 million for the same period in 2009. Share-based compensation expense recognized impacted expenses as indicated below:
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Cerner Corp. has a market cap of $6.37 billion; its shares were traded at around $77.53 with a P/E ratio of 32.3 and P/S ratio of 3.8. Cerner Corp. had an annual average earning growth of 21.5% over the past 10 years. GuruFocus rated Cerner Corp. the business predictability rank of 3-star.CERN is in the portfolios of Edward Owens of Vanguard Health Care Fund, Manning & Napier Advisors, Inc, Richard Aster Jr of Meridian Fund, PRIMECAP Management, RS Investment Management, Jeremy Grantham of GMO LLC, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Overall, while the weak global economy has impacted and could continue to impact our business, we believe there are several factors that are favorable for the HIT industry. Because HIT solutions play an important role in healthcare by improving safety, efficiency and reducing cost, they are often viewed as more strategic than other potential purchases. Most United States healthcare providers also recognize that they must invest in HIT to meet regulatory, compliance and government reimbursement requirements. In addition, with the Centers for Medicare and Medicaid Services estimating United States healthcare spending at $2.5 trillion or 17.3 percent of 2009 Gross Domestic Product, politicians and policymakers agree that the growing cost of our healthcare system is unsustainable. Leaders of both parties say the intelligent use of information systems will improve health outcomes and, correspondingly, drive down costs. They cite a 2005 study by RAND Corp., which estimated that the widespread adoption of HIT in the United States could cut healthcare costs by $162 billion annually.The Company delivered strong levels of bookings, revenues, earnings and cash flows in the second quarter of 2010. New business bookings revenue, which reflects the value of executed contracts for software, hardware and professional services and managed services, was $467.8 million in the second quarter of 2010, which was an increase of 19% compared to $394.0 million in the second quarter of 2009. Revenues for the second quarter of 2010 increased 13% to $456.0 million compared to $403.8 million in the year-ago quarter. The year-over-year increase in revenue in the second quarter reflects improved economic conditions and demand driven by the stimulus incentives.
Second quarter 2010 net earnings were $55.5 million and diluted earnings per share were $0.65. Second quarter 2009 net earnings were $43.7 million and diluted earnings per share were $0.52. Second quarter 2010 and 2009 net earnings and diluted earnings per share reflect the impact of shared-based compensation expense. Share-based compensation expense reduced second quarter 2010 net earnings and diluted earnings per share by $3.7 million and $0.04, respectively, and second quarter 2009 earnings and diluted earnings per share by $2.3 million and $0.03, respectively.
We had strong cash collections of receivables of $447.0 million in the second quarter of 2010 compared to $436.0 million in the second quarter of 2009. Days sales outstanding decreased to 88 days in the second quarter of 2010 compared to 89 days in the first quarter of 2010 and 100 days in the second quarter of 2009. The majority of the year-over-year decline is driven by the reclassification of our Fujitsu receivable to other long term assets during the fourth quarter of 2009, which is not included in our days sales outstanding calculation. Operating cash flows for the second quarter of 2010 were strong at $110.2 million compared to $67.9 million in the second quarter of 2009.
Revenues increased 13% to $456.0 million for the second quarter 2010 from $403.8 million for the same period in 2009.
Total operating expenses increased 8% to $291.4 million in the second quarter of 2010, compared with $270.8 million for the same period in 2009. Share-based compensation expense recognized impacted expenses as indicated below:
Read the The complete Report
