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Cerner 4Q profit rises 17 percent

Tue, 02/08/2011 - 1:45pm
The Associated Press

Health care information technology provider Cerner Corp. said Tuesday its profit rose 17 percent in the fourth quarter amid higher support and services revenue.

The company reported net income of $70.6 million, or 82 cents a share, for the quarter ended Jan. 1. That compares with net income of $60.5 million, or 71 cents a share, in the comparable quarter a year earlier. Revenue rose 7 percent to $500.2 million from $466.3 million.

Excluding charges, the company said it earned 87 cents per share. Analysts polled by FactSet expected 84 cents per share in profit on $504.2 million in revenue.

Bookings totaled $626.2 million, the second-best quarterly result ever, Cerner said, and above its expected range of $490 million to $530 million.

"Our results reflect strong performance in what we believe is the beginning of a multiyear period of increased demand for our solutions and services driven by stimulus, health care reform, and other regulatory requirements," Neal Patterson, chairman, president and CEO, said in a statement.

For the full year, the company earned $237.3 million, or $2.78 per share, up from $193.5 million, or $2.31 per share, in 2009. Revenue rose to $1.85 billion from $1.67 billion.

Looking ahead, Cerner expects first-quarter adjusted profit between 73 cents and 77 cents per share on revenue between $475 million and $490 million. For the full 2011 fiscal year, the company expects adjusted profit between $3.50 and $3.60 per share on $2.05 billion to $2.1 billion in revenue.

New business bookings during the first quarter should total $435 million to $465 million.

Analysts expect first-quarter profit of 76 cents per share on $482.7 million in revenue and full-year profit of $3.55 per share on $2.09 billion in revenue.

Shares of Cerner rose 90 cents to close at $100.97.

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