Strong sales helped bolster health information technology second-quarter revenue as companies continue to post results over the next few weeks.
A snapshot of health IT companies ranging from medical imaging to electronic health records show the sector is building its product offerings while profits continue to grow slowly. The sector has been focusing on mergers and acquisitions in the first half the year, a trend analysts say likely will continue.
Revenue-cycle, health record and business management systems performed favorably in the quarter. Eclipsys Corp., an Atlanta-based clinical and revenue-cycle management software company, posted higher-than-expected profit compared with second-quarter 2007, with net income increasing 49% to $8.51 million from $5.69 million last year. Revenue was up 11% to $132.14 million, beating market analysts expectations of $128 million, the company said. Eclipsys attributed the growth to increased business from its acquisitions.
Perot, which recently announced a new contract to install a version of the Veterans Affairs Department's healthcare information-technology system, VistA, throughout hospitals the Middle East nation of Jordan, said its new and expanding businesses in the quarter led to increased profit margins. Plano, Texas-based Perot had an 11% increase in revenue, to $705 million from $635 million in the second quarter of 2007. Operating profit margin grew 1 percentage point and the company signed $261 million worth of new contracts for the three months ended June 30.
Cerner Corp. reported $404 million in bookings for the quarter, down 17% from $487 million in the second quarter of 2007. Revenue increased 4% to $402.8 million with net earnings of $35.3 million. Cerners overall revenue growth was affected by a decline in hardware sales but the companys core business remains strong, according to Neal Patterson, chairman and chief executive officer.
Imaging company Nighthawk Radiology Holdings, which met analysts second-quarter expectations, took in $2.8 million net income on revenue of $42.8 million, an increase of 13% over the 2007 quarter. The Coeur DAlene, Idaho-based Nighthawk reported it grew the number of scans it conducts 7% to 780,000 scans in the quarter as well. Business improvement initiatives in sales, competitiveness, service delivery and physician scheduling were factors in the growth, the company said.
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