On Nov. 1, health IT vendor Cerner released its third quarter financial results.
Here are six things to know about Kansas City, Mo.-based Cerner's Q3 results and the resulting occurrences.
1. For Q3 of fiscal year 2016, Cerner reported revenue up 5 percent from Q3 of FY 2015. Q3 revenue this year was $1.185 billion, while Q3 FY 2015 revenue was $1.128 billion.
2. Bookings in Q3 of 2016 were down 10 percent from bookings in Q3 of 2015. This year's bookings were $1.434 billion, slightly below last year's all-time high bookings of $1.590 billion.
3. Q3 FY 2016 GAAP net earnings were 15 percent higher than those in Q3 of FY 2015. This year's Q3 GAAP net earnings were $170.0 million and diluted earnings per share were $0.49. In FY 2015, GAAP net earnings were $147.3 million and diluted earnings per share were $0.42.
4. Despite financial results that were lower than expected, Cerner President Zane Burke expressed hope for the future. "While Cerner's third quarter results were slightly below our expectations, they were still solid and included the second highest level of bookings in our history," he said. "Our competitiveness remains strong and has been bolstered by over $2 billion of investments in research and development over the past four years. We believe these investments have strengthened our clinical, revenue cycle and population health solutions and position us for strong growth going forward."
5. After releasing its results, Cerner said it will offer another round of buyouts in Q4. The voluntary separation plans will be available to U.S. employees who "meet a minimum level of combined age and tenure," said Cerner CFO Marc Naughton, according to the Kansas City Business Journal. Cerner expects less than 2 percent of its workforce will accept the buyouts.
"This should not be viewed as a layoff or sign that we don't expect to grow. We've grown our headcount by over 2,000 people this year and expect to grow head count next year as well," Mr. Naughton added.
6. Cerner shares fell 7.3 percent on Nov. 2, according to The Kansas City Star. Although its stock had traded above $60 throughout the summer, Cerner shares fell $4.19 on Wednesday, finishing the day at $53.15.