Cerner boosts 1Q revenue but falls short of projections

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Cerner Corporation released its earnings report for the first quarter of 2016. The health IT company had a bit of good news—revenue increased when compared to the first quarter of 2015—along with a bit of bad—revenue fell short of projections and bookings remained flat.

Cerner reported overall revenue increased by 14 percent versus 2015, reaching $1.14 billion from $996 million. But due to declining margins in technology resale value, Cerner fell $10 million short of its projections for the quarter ending on April 2.

Cerner President Zane Burke pointed to growth in software, subscriptions and services as reasons for optimism.

"Our first-quarter results reflect a good start to the year,” Cerner President Zane Burke said in a release. “We continue to have great success at gaining new clients, which is a reflection of a robust replacement market and our competitiveness."

Cerner projects second quarter revenue between $1.175 and $1.25 billion and full-year revenue between $4.9 billion and $5.1 billion, consistent with last year’s figures.

In the last month, Cerner has reached a number of agreements with healthcare providers, including Centra, Universal Health Services and Tift Regional Health System, to implement various IT systems.