KANSAS CITY, Mo., Oct. 28, 2009 (GLOBE NEWSWIRE) -- Cerner Corp. (Nasdaq:CERN) today announced results for the 2009 third quarter that ended October 3, 2009, delivering record levels of bookings, and strong cash flow and earnings.

Bookings in the third quarter of 2009 were $424.3 million, up 11% from $383.6 million in the third quarter of 2008 and a record for third quarter bookings. Third quarter revenue was $409.4 million, which is a 3% decrease from the year-ago period.

On a Generally Accepted Accounting Principles (GAAP) basis, third quarter 2009 net earnings were $48.4 million, and diluted earnings per share were $0.57. Third quarter 2008 GAAP net earnings were $45.0 million, and diluted earnings per share were $0.54.

Adjusted (non-GAAP) Earnings

Adjusted third quarter 2009 net earnings were $51.3 million, compared to $47.4 million of adjusted net earnings in the third quarter of 2008. Adjusted diluted earnings per share were $0.61 in the third quarter of 2009 compared to $0.57 in the third quarter of 2008. Analysts' consensus estimate for third quarter 2009 adjusted diluted earnings per share was $0.61.

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 third 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 third 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 third quarter 2009 net earnings and diluted earnings per share by $3.0 million and $0.04, respectively, and reduced third quarter 2008 net earnings and diluted earnings per share by $2.4 million and $0.03, respectively.

Other Third Quarter Highlights:

• Third quarter cash collections of $410.6 million and operating cash flow of $73.4 million.
• Days sales outstanding of 105 days compared to 100 days in the second quarter of 2009 and 93 days in the year-ago quarter.
• Total revenue backlog of $3.85 billion, up 13 percent over the year-ago quarter. This is comprised of $3.25 billion of contract backlog and $604 million of support and maintenance backlog.

"Our execution was solid in the third quarter, which included strong bookings, earnings, and cash flow," said Neal Patterson, Cerner co-founder, chairman and chief executive officer. "We are also encouraged by leading indicators that reflect demand beginning to be driven by the Health Information Technology for Economic and Clinical Health (HITECH) provisions in the American Recovery and Reinvestment Act of 2009 (ARRA). We believe HITECH will continue to be a driver of demand for several years as healthcare organizations embrace technology to create a safer, more efficient, and higher-quality healthcare system," Patterson said.

Future Period Guidance

Cerner currently expects:

• Fourth quarter 2009 revenue between $435 million and $465 million.
• Fourth quarter 2009 adjusted diluted earnings per share before stock options expense between $0.68 and $0.74.
• Fourth quarter 2009 new business bookings between $425 million and $475 million.
• SFAS No. 123R share-based compensation expense to reduce diluted earnings per share by approximately $0.03 to $0.04 in the fourth quarter of 2009.

Earnings Conference Call

Cerner will host an earnings conference call to provide additional detail on third quarter results at 3:30 p.m. CT on October 28. The dial-in number for the conference call is (617) 213-8860; 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 6:30 p.m. CT, October 28 through 11:59 p.m. CT, October 31. The dial-in number for the re-broadcast is (617) 801-6888; the passcode is 41281702.

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 "encouraged," "leading indicators," "believe," "continue," "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. operations; risks associated with our ability to effectively hedge exposure to fluctuations in foreign currency exchange rates; risks associated with our recruitment and retention of key personnel; risks related to our reliance on third party suppliers; risks inherent with business acquisitions; changing political, economic and regulatory influences; government regulation; significant competition and market changes; the current adverse financial market environment and uncertainty in global economic conditions; variations in our quarterly operating results; potential inconsistencies in our sales forecasts compared to actual sales; and the volatility in the trading price of our common stock. Additional discussion of these and other factors affecting the Company's business is contained in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial condition or business over time.

 Note 1:  Operating expenses for the three months ended October 3,
 2009 and September 27, 2008 and the nine months ended October 3,
 2009 and September 27, 2008 include share-based compensation
 expense.  The impact of this expense on net earnings is presented
 below:

 Note 2:  Includes the impact of the third party supplier settlement
 reported in the second quarter of 2008.

 Note 1:  The presentation of Adjusted Net Earnings, a Non-GAAP
 financial measure, is not meant to be considered in isolation, as a
 substitute for, or superior to, Generally Accepted Accounting
 Principles (GAAP) results and investors should be aware that non-GAAP
 measures have inherent limitations and should be read only in
 conjunction with the Company's consolidated financial statements
 prepared in accordance with GAAP.  Adjusted Net Earnings may also be
 different from similar non-GAAP financial measures used by other
 companies and may not be comparable to similarly titled captions of
 other companies due to potential inconsistencies in the method of
 calculation.   The Company believes that Adjusted Net Earnings is
 important to enable investors to better understand and evaluate its
 ongoing operating results and allows for greater transparency in the
 review of its overall financial, operational and economic performance.
 Note 2:  The Company provides earnings with and without stock options
 expense and unique items such as the third party supplier settlement
 because earnings excluding these items are used by management along
 with GAAP results to analyze its business, make strategic decisions
 and for management compensation purposes.

CONTACT: Cerner Corp.
         Investor Contact:
         Allan Kells
           (816) 201-2445
           akells@cerner.com
        Media Contact:
        Sarah Bond
          (816) 885-8020
          sarah.bond@cerner.com
          www.cerner.com