Connect with us

Health Care

While revenues increased 10% in the second quarter, Cerner seeks to reduce costs by reducing jobs, offices

Published

on

While revenues increased 10% in the second quarter, Cerner seeks to reduce costs by reducing jobs, offices

Reversing four consecutive quarters of decline, health IT company Cerner’s top line jumped nearly 10% to hit $ 1.46 billion in the second quarter, up from $ 1.3 billion a year ago.

Despite revenue growth, the company’s second-quarter net income slumped 75% from a profit of $ 134.7 million during the same quarter last year to $ 32.7 million.

Cerner’s restructuring charges dragged its margin during the quarter, as the company reported an operating margin of 3.4%, falling from 11% in the second quarter of 2020. Expenses reflect impacts of employee separation costs, an impairment related to sold properties and product disposal, CFO Mark Erceg said during the call for second quarter results Friday.

The company incurred $ 54 million in employee separation costs due to a significant downsizing and $ 68 million in costs related to the sale of one of its major office campuses.

The company laid off 500 employees in the quarter and eliminated 300 job openings, resulting in $ 70 million in annualized savings, Erceg said.

RELATED: Cerner Seeks Opportunities in Clinical Research and Population Health as It Builds Data Business

“We also spent $ 400 million on share buybacks, bringing our year-to-date purchases to $ 750 million, because we continue to believe that Cerner’s shares, at current trading levels, represent a good return on investment for our shareholders “. He said.

The company now projects its share buybacks during 2021 to reach $ 1.5 billion.

Per share, the North Kansas City, Missouri-based company said it had a net income of 11 cents. Earnings, adjusted for earnings and one-time costs, were 80 cents per share.

The results exceeded Wall Street expectations. The average estimate from 11 analysts surveyed by Zacks Investment Research was earnings of 76 cents a share. The company’s quarterly revenue also beat analysts’ expectations. Eight analysts surveyed by Zacks expected $ 1.44 billion.

The company was trading higher in the morning hours of Friday after the earnings call.

“All key metrics reflected good progress in our transformation initiatives and a strengthened market presence. Based on this progress, we have increased our earnings outlook for the year,” said Brent Shafer, president and CEO, during the earnings call.

Cerner expects full-year earnings to be $ 3.25 per share, compared with a previous outlook of more than $ 3.20 per share.

The company’s revenue forecast for the full year 2021 remains unchanged and growth is expected to be in the middle single digits.

RELATED: Cerner Begins Searching for New CEO as Company Raises Profit Guidance for 2021 Driven by Better Margins

HCE military projects

The company is working with the Department of Defense to modernize its EHR, and that EHR is now active at 42 commands and 663 locations with 41,000 activated users. The Coast Guard deployment will be completed this year.

Shafer, who is retiring from the CEO role, told investors that ongoing challenges with Cerner’s electronic medical records project with the Department of Veterans Affairs would slightly affect the company’s revenue growth.

The VA eliminated the deployment schedule for its new Cerner EHR for at least six months to review training and troubleshoot governance and administration.

“As VA finalizes its new governance and management structure, we will continue our pre-implementation efforts, including technical development and improvements, solution preparation, and site preparation, but no more lives are expected until 2022. As As a result, we now expect another half point of impact on our revenue growth in 2021, reflected in our updated guidance for the year, “said Shafer.

Growth prospects in a post-pandemic world

On a positive note, the company experienced strong growth in reserves in the second quarter, an increase of 2% to nearly $ 1.4 billion, bringing year-to-date reserve growth to 7%.

“Importantly, we believe this represents a positive turning point as total reserves declined during fiscal 2019 and fiscal 2020,” Erceg said.

The company had 24 new customer footprints this year and 49 important lives, executives said.

RELATED: JPM21: Cerner Wants To Build A $ 1 Billion Data Business As It Expands Its Reach In The Pharma Market

As healthcare clients recover from the COVID-19 pandemic, executives are showing increased interest in consumer strategies, real-time data strategies for capacity management and management of the value-based care workforce and business models, according to Cerner President Don Trigg.

“Volume levels are returning to pre-COVID levels, so people are feeling good about the core aspects of the business on the supplier side and how it is recovering from last year’s disruption, but I think at the same time I watch cautiously as the Delta variant plays forward, “Trigg told investors on the earnings call.

With slow growth in the medical records software market, Cerner is looking for opportunities in its data business, including in the clinical research space. The company acquired the healthcare division of Kantar Group, which provides data, analysis and research to the life sciences industry, for $ 375 million.

During JP Morgan’s annual healthcare conference in January, Cerner executives said the healthcare IT company was setting its sights on building a billion-dollar data business for the healthcare and science industries. life.

Cerner is also considering potential acquisitions that will improve its competitive position, including in areas such as cybersecurity, the technology to support provider networks operating in both value-based care and pay-for-service data and arrangements.

“This is an interesting space. We are thinking about it a lot and we see organic opportunities to drive a bigger business there,” Trigg said.

Advertisement
Advertisement

Lifestyle

LifeStyle4 hours ago

Tips to Boost Your Energy and Ensure Life Longevity with NMN Supplements

Australia’s median age limit increased by two years recently. Higher NAD+ can improve your metabolism rates and prolong natural aging....

LifeStyle1 month ago

5 Tips on Writing APA Research Paper

When students reach college education, they understand that it won’t all be flowers and sunshine. There are different courses with...

Support group for businesses to overcome challenges Support group for businesses to overcome challenges
LifeStyle2 months ago

Support group for businesses to overcome challenges

All-day brunch and soup kitchen Cafe Coco suffered as walk-ins dwindled significantly. It’s a tourist-dependent cafe that’s nestled in the...

S’pore startup Shiok Meats acquires clean red meat company Gaia Foods S’pore startup Shiok Meats acquires clean red meat company Gaia Foods
LifeStyle2 months ago

S’pore startup Shiok Meats acquires clean red meat company Gaia Foods

According to Technology in Asia, Shiok Meats has acquired a stake of more than 90% in Gaia Foods for an...

Marianna Hewitt’s home proves that neutral decor can be full of personality Marianna Hewitt’s home proves that neutral decor can be full of personality
LifeStyle2 months ago

Marianna Hewitt’s home proves that neutral decor can be full of personality

If anyone understands the importance of maintaining your brand, it is Marianna Hewitt. The trusted influencer and founder of the...

The 16 best stuffed pepper recipes for every occasion The 16 best stuffed pepper recipes for every occasion
LifeStyle2 months ago

The 16 best stuffed pepper recipes for every occasion

Something you may not know about me is that I absolutely adore a pepper. Raw, cooked, marinated, bathed: each and...

Top 10 Bedroom Plants That Work As Air Purifying Plants Top 10 Bedroom Plants That Work As Air Purifying Plants
LifeStyle2 months ago

Top 10 Bedroom Plants That Work As Air Purifying Plants

Setting a specific tone in a bedroom can happen in many ways. A beautiful candle, plush rugs, soft bedding, soothing...

Breakdown of MDEC’s DIF5 Strategy to Achieve MyDIGITAL Goals Breakdown of MDEC’s DIF5 Strategy to Achieve MyDIGITAL Goals
LifeStyle2 months ago

Breakdown of MDEC’s DIF5 Strategy to Achieve MyDIGITAL Goals

On July 19, 2021, MDEC announced a five-year plan aimed at enhancing Malaysia’s digital economy, Future 5 Digital Investments (DIF5)....

What you should know about personal loans in Malaysia What you should know about personal loans in Malaysia
LifeStyle2 months ago

What you should know about personal loans in Malaysia

[This is a sponsored article with Citibank.] Let’s face it, personal loans don’t I always have the best representative. Seeing...

A new way for Malaysians to support selected local brands A new way for Malaysians to support selected local brands
LifeStyle2 months ago

A new way for Malaysians to support selected local brands

As a media publication that amplifies the voices of local brands, Vulcan Post has looked at the variety of challenges...

Advertisement

Sport

Sports1 month ago

5 Tips for Setting Up Your PC for Online Gaming

Due to advances in technology, online gamers can enjoy a gaming experience that was unthinkable even a decade ago. High-resolution...

Sports1 month ago

How to Succeed in Poker Tournaments

Perhaps your first big poker tournament is coming up, or you’ve been gathering skills ready to enter – no matter...

Sports1 month ago

Is The Olympics Still Relevant?

As the Tokyo Olympics has come to a close, competitors must move on from the excitement of experiencing an Olympic...

Fernández reflects on the game against Dart: ‘Honestly, I can’t think of anything positive’ Fernández reflects on the game against Dart: ‘Honestly, I can’t think of anything positive’
Sports2 months ago

Fernández reflects on the game against Dart: ‘Honestly, I can’t think of anything positive’

var adServerUrl = “”; var $ el = $ (“# video_container-985707”); var permalink = $ el.closest (‘. snet-single-article’). data (‘permalink’);...

Tammy Abraham to Roma – Mourinho is the perfect coach for the striker Tammy Abraham to Roma – Mourinho is the perfect coach for the striker
Sports2 months ago

Tammy Abraham to Roma – Mourinho is the perfect coach for the striker

It seems that not too long ago, a young English Target Man was a troubling prospect for most Premier League...

Explanation: Why Barcelona had to let Messi go Explanation: Why Barcelona had to let Messi go
Sports2 months ago

Explanation: Why Barcelona had to let Messi go

Barcelona’s Argentine forward Lionel Messi cries during a press conference at Barcelona’s Camp Nou stadium on August 8, 2021. –...

Are Arsenal and Spurs left out of the top 6 in dispute as the 2021/22 season approaches? Are Arsenal and Spurs left out of the top 6 in dispute as the 2021/22 season approaches?
Sports2 months ago

Are Arsenal and Spurs left out of the top 6 in dispute as the 2021/22 season approaches?

Manchester United, Manchester City, Liverpool, Chelsea, Spurs and Arsenal are the teams that are widely regarded as the top 6...

What should team Canada’s men’s hockey roster look like? What should team Canada’s men’s hockey roster look like?
Sports2 months ago

What should team Canada’s men’s hockey roster look like?

We have sent an email with instructions to create a new password. Your current password has not been changed. We...

Haaland, but staying in Dotmund, can BVB get the title on 21/22? Haaland, but staying in Dotmund, can BVB get the title on 21/22?
Sports2 months ago

Haaland, but staying in Dotmund, can BVB get the title on 21/22?

There are almost twenty days left in the transfer window. The window is in full swing as deals that would...

Knicks agree to deal with Dwayne Bacon: reports Knicks agree to deal with Dwayne Bacon: reports
Sports2 months ago

Knicks agree to deal with Dwayne Bacon: reports

Dwayne Bacon # 8 of the Orlando Magic shoots as John Collins # 20 of the Atlanta Hawks defends during...

Advertisement

Entertainment

Venice adds Doc ‘Ennio’;  Netflix Confirms Sanjay Leela Bhansali Series – News Block Venice adds Doc ‘Ennio’;  Netflix Confirms Sanjay Leela Bhansali Series – News Block
Entertainment2 months ago

Venice adds Doc ‘Ennio’; Netflix Confirms Sanjay Leela Bhansali Series – News Block

Venice adds Giuseppe Tornatore’s Ennio Morricone film The Venice Film Festival incorporates the Out of Competition screening of Ennio Morricone’s...

The Jeffrey Epstein Victims Fund has finished paying $ 121 million The Jeffrey Epstein Victims Fund has finished paying $ 121 million
Entertainment2 months ago

The Jeffrey Epstein Victims Fund has finished paying $ 121 million

After awarding more than $ 121 million to about 150 applicants, a compensation program for survivors of Jeffrey Epstein’s sexual...

Matt Roloff and Karyn Chandler move in together, discuss marriage Matt Roloff and Karyn Chandler move in together, discuss marriage
Entertainment2 months ago

Matt Roloff and Karyn Chandler move in together, discuss marriage

Small people, big world star Matt Roloff and his girlfriend, Karyn Chandlerhave revealed their big summer plans in a new...

Mike Shouhed wants Reza Farahan to apologize for being a ‘traitor’ Mike Shouhed wants Reza Farahan to apologize for being a ‘traitor’
Entertainment2 months ago

Mike Shouhed wants Reza Farahan to apologize for being a ‘traitor’

Shouhed says his Shahs of Sunset co-star “cuts deep and says things that are hard to forgive.” While a sexting...

Joey Lawrence and Samantha Cope are engaged Joey Lawrence and Samantha Cope are engaged
Entertainment2 months ago

Joey Lawrence and Samantha Cope are engaged

He put a ring on it! Joey lawrence is engaged to the actress Samantha cope one year after filing for...

Christine Applegate was diagnosed with multiple sclerosis Christine Applegate was diagnosed with multiple sclerosis
Entertainment2 months ago

Christine Applegate was diagnosed with multiple sclerosis

August 10, 2021 Christine Applegate was diagnosed with multiple sclerosis (MS). Christina Applegate The 49-year-old actress took to Twitter on...

UK advertisers form tapestry with clients Coel, Fassbender, Foy – News Block UK advertisers form tapestry with clients Coel, Fassbender, Foy – News Block
Entertainment2 months ago

UK advertisers form tapestry with clients Coel, Fassbender, Foy – News Block

EXCLUSIVE: UK advertisers Donna Mills and Emma Jackson, longtime representatives of London-based Premier Communications, have launched the new advertising agency...

Christina Applegate: actress reveals multiple sclerosis diagnosis Christina Applegate: actress reveals multiple sclerosis diagnosis
Entertainment2 months ago

Christina Applegate: actress reveals multiple sclerosis diagnosis

prime time Emmy-winning actor Christina applegate has revealed a multiple sclerosis condition through a Twitter post late on Monday night....

Prince Harry and Meghan Markle wanted to move to New Zealand in 2018 Prince Harry and Meghan Markle wanted to move to New Zealand in 2018
Entertainment2 months ago

Prince Harry and Meghan Markle wanted to move to New Zealand in 2018

Prince harry and Meghan Markle according to Queen Elizabeth IIRepresentative to New Zealand, Governor General Patsy Reddy… She said Associated...

Alarming new UN climate report says humanity has really screwed itself up Alarming new UN climate report says humanity has really screwed itself up
Entertainment2 months ago

Alarming new UN climate report says humanity has really screwed itself up

The last evaluation of climate science is a “code red for humanity,” the United Nations chief said on Monday, while...

Advertisement

Tech

Tech2 days ago

How Serious is Plagiarism in College?

Studying in college often demands writing essays and course papers. You may study technical subjects and do not have many...

Tech3 days ago

Three Possible Ways of How You Can Transfer Contacts from Outlook to iPhone

MS Outlook plays an important role in putting daily life in order, especially with regard to email management. If you...

Tech4 days ago

Importance of Email Validation

According to recent stats, 30% of users change their email every year. Therefore, if your mailing list is more than...

Tech4 days ago

Before Doing Virtual Staging, Here’s What You Should Know

The majority of people today go online to look for homes. When a potential buyer spots a house online that...

Tech1 week ago

What Technologies are Online Casinos Using?

Online casinos have become an ideal choice for a lot of players, especially because they let players take their games...

Tech3 weeks ago

Grow Your Brand With These 5 Social Media Tips

Whether you’re operating a new business or working to grow your brand, social media is an excellent place to start....

Tech1 month ago

Is Mining Ethereum Still Profitable in 2021?

Globally, there have been lots of innovations and modernization in different aspects of life. This fact has contributed to the...

Tech1 month ago

Popularity Of the Blockchain Technology: How Familiar Are You with It?

Cryptocurrencies are a form of digital currency that stands out because it is decentralized. Cryptocurrency also stands out because it...

Tech1 month ago

5 Most Effective Tips For Speeding Up A Mac

Are you facing speed issues with your MacBook? Do you feel it needs to be repaired or replaced with a...

The frozen cave lion still has whiskers and hair despite being 28,000 years old The frozen cave lion still has whiskers and hair despite being 28,000 years old
Tech2 months ago

The frozen cave lion still has whiskers and hair despite being 28,000 years old

They are not lions. A nearly 28,000-year-old female cave lion cub, nicknamed Sparta, may be the best-preserved Ice Age animal...

Advertisement
Advertisement