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Dive Brief:
- Cerner reported a 27% revenue increase in Q1 of 2015—$996.1 million compared to $784.8 million in Q1 of 2014—a weaker-than-expected figure that includes revenues from the company’s acquisition of Siemens Health Services that closed in February.
- The shortcoming was “due to a combination of lower than expected revenue from the recently closed acquisition [of the Siemens unit] and lower revenue in our existing business,” the company said in a news release.
- Net income dropped 7% to $110.9 million, from $119.5 million in Q1 of last year.
Dive Insight:
Despite slightly subdued results, President Zane Burke pointed to a healthy stream of business, including three Siemens clients who moved their five hospitals to Cerner software.
“Every piece of our pipeline picked up,” Burke said. “We see approximately 50% more decisions in the U.S. than we saw all last year.”
Of course, Q1 will be nothing but a distant memory if Cerner wins the $11-billion Department of Defense contract, which the company is vying for as part of a partnership with security contractor Leidos and consultant Accenture. According to Burke, the company expects the feds to “make a decision on the first phase of that work at the end of our second quarter.”
