Cerner Corp. (CERN, Financial) filed Annual Report for the period ended 2011-01-01.
Cerner Corp. has a market cap of $8.13 billion; its shares were traded at around $98.17 with a P/E ratio of 35.4 and P/S ratio of 4.4. 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.Hedge Fund Gurus that owns CERN: Manning & Napier Advisors, Inc, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns CERN: Edward Owens of Vanguard Health Care Fund, Richard Aster Jr of Meridian Fund, PRIMECAP Management, PRIMECAP Management, Ron Baron of Baron Funds, Jeremy Grantham of GMO LLC, RS Investment Management.
We commit significant resources to developing new health information system solutions. As of the end of 2010, approximately 2,400 associates were engaged in research and development activities. Total expenditures for the development and enhancement of our software solutions were approximately $284.8 million, $285.2 million and $291.4 million during the 2010, 2009 and 2008 fiscal years, respectively. These figures include both capitalized and non-capitalized portions and exclude amounts amortized for financial reporting purposes.
At the end of 2010, we had a contract backlog of approximately $4.3 billion as compared to approximately $3.6 billion at the end of 2009. Such backlog represents system sales and services from signed contracts that have not yet been recognized as revenue. At the end of 2010, we had approximately $140.0 million of contracts receivable compared to $135.3 million at the end of 2009, which represents revenues recognized but not yet billable under the terms of the contract. At the end of 2010, we had a software support and maintenance backlog of approximately $654.9 million as compared to approximately $620.6 million at the end of 2009. Such backlog represents contracted software support and hardware maintenance services for a period of 12 months. We estimate that approximately 31 percent of the aggregate backlog at the end of 2010 of $4.9 billion will be recognized as revenue during 2011.
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Cerner Corp. has a market cap of $8.13 billion; its shares were traded at around $98.17 with a P/E ratio of 35.4 and P/S ratio of 4.4. 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.Hedge Fund Gurus that owns CERN: Manning & Napier Advisors, Inc, Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns CERN: Edward Owens of Vanguard Health Care Fund, Richard Aster Jr of Meridian Fund, PRIMECAP Management, PRIMECAP Management, Ron Baron of Baron Funds, Jeremy Grantham of GMO LLC, RS Investment Management.
Highlight of Business Operations:
We believe there are several factors that are favorable for the HIT industry over the next decade, despite some lingering weakness in the global economy. 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 capital purchases. Most United States healthcare providers also recognize that they must invest in HIT to meet regulatory, compliance and government reimbursement requirements and incentive opportunities. In addition, with the Centers for Medicare and Medicaid Services estimating United States healthcare spending at $2.6 trillion or 17.5 percent of 2010 Gross Domestic Product, politicians and policymakers agree that the growing cost of our healthcare system is unsustainable. Leaders of both political parties recognize that the intelligent use of information systems will improve health outcomes and, correspondingly, drive down costs. This belief is supported by 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.We commit significant resources to developing new health information system solutions. As of the end of 2010, approximately 2,400 associates were engaged in research and development activities. Total expenditures for the development and enhancement of our software solutions were approximately $284.8 million, $285.2 million and $291.4 million during the 2010, 2009 and 2008 fiscal years, respectively. These figures include both capitalized and non-capitalized portions and exclude amounts amortized for financial reporting purposes.
At the end of 2010, we had a contract backlog of approximately $4.3 billion as compared to approximately $3.6 billion at the end of 2009. Such backlog represents system sales and services from signed contracts that have not yet been recognized as revenue. At the end of 2010, we had approximately $140.0 million of contracts receivable compared to $135.3 million at the end of 2009, which represents revenues recognized but not yet billable under the terms of the contract. At the end of 2010, we had a software support and maintenance backlog of approximately $654.9 million as compared to approximately $620.6 million at the end of 2009. Such backlog represents contracted software support and hardware maintenance services for a period of 12 months. We estimate that approximately 31 percent of the aggregate backlog at the end of 2010 of $4.9 billion will be recognized as revenue during 2011.
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