Cerner Corp. (CERN, Financial) filed Quarterly Report for the period ended 2011-04-02.
Cerner Corp. has a market cap of $9.35 billion; its shares were traded at around $112.09 with a P/E ratio of 40.5 and P/S ratio of 5. Cerner Corp. had an annual average earning growth of 19.1% over the past 10 years. GuruFocus rated Cerner Corp. the business predictability rank of 4-star.
The Company delivered strong levels of bookings, revenues, earnings and cash flows in the first quarter of 2011. New business bookings revenue, which reflects the value of executed contracts for software, hardware and professional services and managed services, was $524.9 million in the first quarter of 2011, which was an increase of 30% compared to $404.9 million in the first quarter of 2010. Revenues for the first quarter of 2011 increased 14% to $491.7 million compared to $431.3 million in the year-ago quarter. The year-over-year increase in revenue in the first quarter reflects improved economic conditions and demand driven by the United States stimulus incentives related to HIT. As discussed above in the Healthcare and Healthcare IT Industry, we believe the HITECH incentives and the nations focus on improving the efficiency and quality of healthcare will create a period of increased HIT demand in the United States.
First quarter 2011 net earnings increased 28% to $64.6 million compared to $50.3 million the first quarter of 2010. Diluted earnings per share increased 27% to $0.75 compared to $0.59 in the first quarter of 2010. First quarter 2011 and 2010 net earnings and diluted earnings per share reflect the impact of accounting for stock-based compensation using the fair value method to measure and record expense for stock options, pursuant to Accounting Standards Codification (ASC), 718, Stock Compensation. The effect of these expenses reduced the first quarter 2011 net earnings and diluted earnings per share by $4.6 million and $0.05, respectively, and first quarter 2010 net earnings and diluted earnings per share by $3.5 million and $0.04, respectively.
We had strong cash collections of receivables of $531.1 million in the first quarter of 2011 compared to $483.7 million in the first quarter of 2010. Days sales outstanding was 87 days in the first quarter of 2011 and fourth quarter of 2010 and 89 days in the first quarter of 2010, reflecting our improved cash collections. Operating cash flows for the first quarter of 2011 were strong at $126.5 million compared to $105.5 million in the first quarter of 2010.
Revenues increased 14% to $491.7 million for the first quarter 2011 from $431.3 million for the same period in 2010.
Total operating expenses increased 7% to $307.3 million in the first quarter of 2011, compared with $287.6 million for the same period in 2010.
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Cerner Corp. has a market cap of $9.35 billion; its shares were traded at around $112.09 with a P/E ratio of 40.5 and P/S ratio of 5. Cerner Corp. had an annual average earning growth of 19.1% over the past 10 years. GuruFocus rated Cerner Corp. the business predictability rank of 4-star.
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.The Company delivered strong levels of bookings, revenues, earnings and cash flows in the first quarter of 2011. New business bookings revenue, which reflects the value of executed contracts for software, hardware and professional services and managed services, was $524.9 million in the first quarter of 2011, which was an increase of 30% compared to $404.9 million in the first quarter of 2010. Revenues for the first quarter of 2011 increased 14% to $491.7 million compared to $431.3 million in the year-ago quarter. The year-over-year increase in revenue in the first quarter reflects improved economic conditions and demand driven by the United States stimulus incentives related to HIT. As discussed above in the Healthcare and Healthcare IT Industry, we believe the HITECH incentives and the nations focus on improving the efficiency and quality of healthcare will create a period of increased HIT demand in the United States.
First quarter 2011 net earnings increased 28% to $64.6 million compared to $50.3 million the first quarter of 2010. Diluted earnings per share increased 27% to $0.75 compared to $0.59 in the first quarter of 2010. First quarter 2011 and 2010 net earnings and diluted earnings per share reflect the impact of accounting for stock-based compensation using the fair value method to measure and record expense for stock options, pursuant to Accounting Standards Codification (ASC), 718, Stock Compensation. The effect of these expenses reduced the first quarter 2011 net earnings and diluted earnings per share by $4.6 million and $0.05, respectively, and first quarter 2010 net earnings and diluted earnings per share by $3.5 million and $0.04, respectively.
We had strong cash collections of receivables of $531.1 million in the first quarter of 2011 compared to $483.7 million in the first quarter of 2010. Days sales outstanding was 87 days in the first quarter of 2011 and fourth quarter of 2010 and 89 days in the first quarter of 2010, reflecting our improved cash collections. Operating cash flows for the first quarter of 2011 were strong at $126.5 million compared to $105.5 million in the first quarter of 2010.
Revenues increased 14% to $491.7 million for the first quarter 2011 from $431.3 million for the same period in 2010.
Total operating expenses increased 7% to $307.3 million in the first quarter of 2011, compared with $287.6 million for the same period in 2010.
Read the The complete Report
