Cerner Corp. on Thursday reported higher revenue during the first quarter of 2016 but fell short of analysts' forecasts. The electronic health record developer also reported flat bookings.
Kansas City, Mo.-based Cerner reported $1.14 billion in revenue for the quarter, which was a 14.3% increase from the prior year quarter. Cerner itself had forecast its first quarter revenue to be between $1.15 billion and $1.2 billion.
Shares are down 23% over the past year and fell 5% to $52.75 in after-hours trading Thursday.
The company expects its second quarter 2016 revenue to be between $1.175 billion and $1.25 billion, and full year 2016 revenue between $4.9 billion and $5.1 billion, which remains consistent with last quarter's full-year guidance.
Cerner President Zane Burke was encouraged by the results. “Our first quarter results reflect a good start to the year,” he said in a press release.
Zane said the company had record revenue-cycle sales and success in the cloud-based HealtheIntent population health platform.
“We continue to have great success at gaining new clients, which is a reflection of a robust replacement market and our competitiveness," he added.
Bookings declined slightly to $1.17 billion from $1.2 billion last year. The company had projected $1.15 billion to $1.25 billion.
In December, Iasis Healthcare announced plans to switch its hospitals and clinics to Cerner's Millennium electronic health record platform. The project will cost $50 million and will be completed by March 2018.
Cerner will also see additional business with the federal government. The U.S. Army awarded the company a contract for pathology department laboratory software, and the Defense Department's Military Health System awarded Cerner, Leidos and Accenture a 10-year contract to install an EHR system across its 56 hospitals and more than 300 clinics.
