Cerner posted $1.33 billion in revenue for the second quarter of 2020, down 7 percent from the same period the previous year.
The Kansas City, Mo.-based EHR vendor said the $100 million decline compared to $1.43 billion in the second quarter of 2019 was primarily driven by the effects of the COVID-19 pandemic as well as Cerner's exit from its revenue cycle outsourcing contract with Adventist in the fourth quarter of 2019.
"These factors were largely factored into the company's outlook, but the pandemic had a slightly bigger topline impact than expected, resulting in revenue being $10 million below the company's expectation range," Cerner's earnings report states. "The revenue shortfall had minimal impact on earnings because it was primarily in low margin areas, including technology resale and reimbursed travel."
Five things to know about Cerner's financial performance for the second quarter of 2020, which ended June 30:
1. Cerner reported $134.7 million in net earnings for the second quarter, up 6 percent from $126.9 million during same time last year.
2. For the first half of 2020, however, Cerner posted $281.9 million in net earnings, down 3.9 percent from $293.2 million during the first six months of 2019.
3. Professional services were the biggest revenue driver for the second quarter at $461 million, but were down 5 percent from $485 million reported during the same time last year. Managed services contributed $307 million and support and maintenance added $274 million for the second quarter.
4. Cerner anticipates third quarter revenue to be between $1.35 billion and $1.4 billion.
5. For full year 2020 revenue, the company expects between $5.45 billion and $5.55 billion, down from the previous projection of $5.55 billion to $5.7 billion. The adjusted range is due to the pending sale of Cerner's RevWorks services business and lower revenue in the second quarter due to the pandemic, according to the report.