Cerner Corporation (CERN) has reported 15.20 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $173.21 million, or $0.52 a share in the quarter, compared with $150.36 million, or $0.43 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $197.80 million, or $0.59 a share compared with $182.40 million or $0.53 a share, a year ago.
Revenue during the quarter grew 10.75 percent to $1,260.49 million from $1,138.14 million in the previous year period. Gross margin for the quarter expanded 36 basis points over the previous year period to 15.79 percent. Total expenses were 80.63 percent of quarterly revenues, down from 81.07 percent for the same period last year. This has led to an improvement of 44 basis points in operating margin to 19.37 percent.
Operating income for the quarter was $244.13 million, compared with $215.45 million in the previous year period.
For the second-quarter, Cerner Corporation forecasts revenue to be in the range of $1,265 million to $1,335 million, the company expects diluted earnings per share to be in the range of $0.60 to $0.62.
For fiscal year 2017, Cerner Corporation forecasts revenue to be in the range of $5,100 million to $5,300 million. The company expects diluted earnings per share to be in the range of $2.44 to $2.56 on adjusted basis.
Operating cash flow declinesCerner Corporation has generated cash of $303.58 million from operating activities during the quarter, down 9.70 percent or $ 32.62 million, when compared with the last year period. The company has spent $103.85 million cash to meet investing activities during the quarter as against cash outgo of $303.55 million in the last year period.
Cash flow from financing activities was $4.37 million for the quarter as against cash outgo of $140.05 million in the last year period.
Cash and cash equivalents stood at $378.45 million as on Mar. 31, 2017, up 28.03 percent or $82.86 million from $295.59 million on Mar. 31, 2016.
Working capital increases marginally
Cerner Corporation has recorded an increase in the working capital over the last year. It stood at $992.57 million as at Mar. 31, 2017, up 4.18 percent or $39.87 million from $952.71 million on Mar. 31, 2016. Current ratio was at 2.19 as on Mar. 31, 2017, down from 2.23 on Mar. 31, 2016.
Days sales outstanding went up to 72 days for the quarter compared with 41 days for the same period last year.
Days inventory outstanding was almost stable at 1 days for the quarter, when compared with the last year period.
Debt comes downCerner Corporation has recorded a decline in total debt over the last one year. It stood at $550.14 million as on Mar. 31, 2017, down 7.61 percent or $45.30 million from $595.44 million on Mar. 31, 2016. Total debt was 9.48 percent of total assets as on Mar. 31, 2017, compared with 10.64 percent on Mar. 31, 2016. Debt to equity ratio was at 0.13 as on Mar. 31, 2017, down from 0.15 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
