Strong Earnings and Cash Flow

KANSAS CITY, Mo., July 29, 2009 (GLOBE NEWSWIRE) -- Cerner Corp. (Nasdaq:CERN) today announced results for the 2009 second quarter that ended July 4, 2009, delivering strong levels of bookings, earnings and cash flow.

Bookings in the second quarter of 2009 were $394.0 million. Second quarter revenue was $403.8 million, which is flat over the year-ago period.

On a Generally Accepted Accounting Principles (GAAP) basis, second quarter 2009 net earnings were $43.7 million, and diluted earnings per share were $0.52. Second quarter 2008 GAAP net earnings were $35.3 million, and diluted earnings per share were $0.42.

Adjusted (non-GAAP) Earnings

Adjusted second quarter 2009 net earnings were $46.0 million, compared to $42.5 million of adjusted net earnings in the second quarter of 2008. Adjusted diluted earnings per share were $0.55 in the second quarter of 2009 compared to $0.51 in the second quarter of 2008. Analysts' consensus estimate for second quarter 2009 adjusted diluted earnings per share was $0.55.

Adjusted Net Earnings is not a recognized term under GAAP and should not be substituted for net earnings as a measure of the Company's performance but instead should be utilized as a supplemental measure of financial performance in evaluating our business. Following is a description of adjustments made to second quarter net earnings. For more detail, please see the accompanying schedule, titled "Reconciliation of Adjusted Net Earnings and Adjusted Diluted Earnings Per Share to GAAP Net Earnings and Diluted Earnings Per Share."

Adjusted second quarter 2009 and 2008 net earnings and diluted earnings per share exclude the impact of accounting pursuant to Statement of Financial Accounting Standards (SFAS) No. 123R, Share-Based Payment, which requires the expensing of stock options. The effect of accounting under SFAS 123R reduced second quarter 2009 net earnings and diluted earnings per share by $2.3 million and $0.03, respectively, and reduced second quarter 2008 net earnings and diluted earnings per share by $2.2 million and $0.03, respectively.

Second quarter 2008 adjusted net earnings and adjusted diluted earnings per share exclude the impact of a third party supplier settlement. The settlement reduced second quarter 2008 net earnings and diluted earnings per share by $5.0 million and $0.06, respectively.

 Other Second Quarter Highlights:
 * Second quarter cash collections of $436.0 million and operating
   cash flow of $67.9 million.
 * Days sales outstanding of 100 days compared to 102 days in the
   first quarter of 2009 and 90 days in the year-ago quarter.
 * Total revenue backlog of $3.7 billion, up 12 percent over the
   year-ago quarter.  This is comprised of $3.1 billion of contract
   backlog and $0.6 billion of support and maintenance backlog.

"We delivered good earnings and cash flow performance in the second quarter despite the economy continuing to have an impact on our revenue levels," said Neal Patterson, Cerner co-founder, chairman and chief executive officer. "We continue to believe the Health Information Technology for Economic and Clinical Health (HITECH) provisions in the American Recovery and Reinvestment Act of 2009 (ARRA) represent a substantial opportunity for Cerner in coming years. And the investment from the ARRA could create the level of systemic change in the U.S. healthcare system that will improve safety and quality while also saving our nation hundreds of billions of dollars annually," Patterson said.

Future Period Guidance

 Cerner currently expects:
 * Third quarter 2009 revenue between $410 million and $430 million.
 * Third quarter 2009 adjusted diluted earnings per share before stock
   options expense between $0.57 and $0.63.
 * Third quarter 2009 new business bookings between $380 million and
   $420 million.
 * Full-year 2009 revenue between $1.7 billion and $1.75 billion.
 * Full-year 2009 adjusted diluted earnings per share before stock
   options expense between $2.40-$2.50, which is unchanged from prior
   guidance.
 * SFAS No. 123R share-based compensation expense to reduce diluted
   earnings per share by approximately $0.03 in the third quarter of
   2009 and 12-13 cents for the full-year 2009.

Earnings Conference Call

Cerner will host an earnings conference call to provide additional detail on second quarter results at 3:30 p.m. CT on July 29. The dial-in number for the conference call is (617) 213-8844; the passcode is Cerner. The company recommends joining the call 15 minutes early for registration. The re-broadcast of the call will be available from 5:30 p.m. CT, July 29 through 11:59 p.m. CT, Aug. 1. The dial-in number for the re-broadcast is (617) 801-6888; the passcode is 85120678.

An audio webcast will be available live and archived on Cerner's Web site at www.cerner.com under the About Cerner section (click Investors, then Presentations and Webcasts).

About Cerner

Cerner is transforming healthcare by eliminating error, variance and waste for healthcare providers and consumers around the world. Cerner solutions optimize processes for healthcare organizations ranging in size from single-doctor practices, to health systems, to entire countries, for the pharmaceutical and medical device industries, and for the healthcare commerce system. These solutions are licensed by more than 8,000 facilities around the world, including approximately 2,100 hospitals; 3,300 physician practices covering more than 30,000 physicians; 500 ambulatory facilities, such as laboratories, ambulatory centers, cardiac facilities, radiology clinics and surgery centers; 600 home-health facilities; and 1,500 retail pharmacies. The following are trademarks of Cerner: Cerner and Cerner's logo. Nasdaq: CERN. For more information about Cerner, please visit our Web site at www.cerner.com.

This release contains forward-looking statements that involve a number of risks and uncertainties. It is important to note that the Company's performance, and actual results, financial condition or business could differ materially from those expressed in such forward-looking statements. The words "believe," "opportunity," "could," " "guidance," and "expects" or the negative of these words, variations thereof or similar expressions are intended to identify such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the possibility of product-related liabilities; potential claims for system errors and warranties; the possibility of interruption at our data centers or client support facilities; our proprietary technology may be subject to claims for infringement or misappropriation of intellectual property rights of others, or may be infringed or misappropriated by others; risks associated with our non-U.S.