Despite dips in non-U.S. revenue and technology resale, Cerner had a strong second quarter with a record level of bookings and revenue up 6% from the year before.
Revenue from outside the U.S. fell 5% over the second quarter of 2016. That drop came mostly from currency fluctuations and relatively weak technology resale, according to Cerner CFO Marc Naughton. He pointed out that technology resale was up against a difficult comparison from the year before.
"Things are actually going pretty well," he said.
In the U.S., Cerner had a stronger performance, with revenue of $1.29 billion and net earnings of $179.7 million. "We are pleased with our good Q2 and look forward to a strong second half of the year," Naughton said.
Bookings hit a record high, at $1.64 billion, with contributions from new, existing, and short- and long-term clients, said Cerner president Zane Burke. Though he acknowledged the EHR marketplace will inevitably slow down, that time hasn't come, he said.
"I remain pleased with our competitiveness," he said, not naming Epic explicitly but noting that Cerner is doing well against its "primary competitor."
Bruce said he was skeptical over newcomer companies' ability to make beneficial differences on the EHR market. Apple, for instance, has been rumored to be trying to get into the EHR business.
"It's just very challenging for those who are not totally focused on healthcare. The only thing we think about when we wake up is healthcare and IT," he said.
The company devoted little time to one of the biggest events of the quarter, the announcement that the VA would partner with the vendor for an EHR that will replace the VA's homegrown system, VistA. "We're working closely with the VA on scoping the full work effort," Burke said. "We're in the process of building our team and selecting partners." He expects a contract to be completed by the end of the year.
