For the third quarter of 2016, ended Oct. 3, Cerner reported growth in revenue and earnings, but not at the rate that the health technology company predicted. However, Cerner did report a record number of bookings this year, growing 44 percent from the previous year.
Here are five things to know about the company's financial results.
1. Cerner's third quarter revenue this year totaled $1.128 billion, up 34 percent from $840.1 million for the third quarter of the previous year. Marc Naughton, executive vice president and CFO of Cerner, said the revenue growth was under expectation, due to lower than expected technology resale and upfront licensed software contracts.
2. The health technology company's gross profit for the quarter reached $147 million, up 14 percent from the previous year's third quarter profit of $129 million.
3. Additionally, Cerner's bookings reached an all-time high in the third quarter, totaling $1.59 billion. This represents a 44 percent increase from the $1.1 billion in bookings in the third quarter of 2014. Mr. Naughton said the strong bookings set Cerner up for revenue growth in future quarters.
4. "The highlight of our results in the third quarter was our strong bookings, which again included a record number of new clients joining Cerner," said Neal Patterson, Cerner chairman, CEO and co-founder. "We have signed more new clients in the first three quarters of 2015 than any full-year in our history, and I attribute this success to our strong competitive position in an active marketplace."
5. Some of these new contracts include implementing Cerner's EHR at Coral Gables-based Baptist Health South Florida and a population health program with Danville, Pa.-based Geisinger Health.
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