Giving Cerner a small raise in Q3, the CFO announces the exit

• Giant EHR Cerner reported third-quarter sales of $ 1.36 billion – a slight increase from the second quarter, but down about 4% year-over-year and just below expectations of Wall Street.

• Cerner reported a net income of $ 356.7 million compared to $ 82 million for the same period last year. Reservations were above the midpoint of Cerner’s target, beating Wall Street to $ 1.47 billion.

• The Kansas City, Missouri-based supplier also announced the imminent departure of its current CFO, Marc Naughton, who has been with the company since 1992. Naughton will leave the company next year but will continue to find a successor.

Cerner’s healthcare system customers are particularly warming up with its data tools that can help streamline their workflows during the COVID-19 pandemic, including tools to manage the sales cycle and tools to reprogram elective operations. President Don Trigg said in a Wednesday meeting with investors.

“There is strategic leverage early in the revenue cycle as customers seek to reduce downstream collection costs,” Trigg said.

Cerner’s Professional Services generated nearly $ 480 million in revenue for the quarter, followed by approximately $ 312 million in managed services and approximately $ 260 million in support and maintenance.

The licensed software has raised approximately $ 172 million and subscription revenue of $ 93.4 million.

The provider has offered a forecast for the fourth quarter and expects to get between $ 1.55 billion and $ 1.75 billion for reservations in the next financial report.

Hitting the midpoint of $ 1.65 billion would take bookings for the full year to $ 5.55 billion, down 7% from 2019, attributing Naughton to the pandemic and divestments.

“Given the current context, particularly the uncertainty over the impact of cold weather and flu season on the pandemic, we continue to warn that our projections remain at higher risk than normal “Naughton said.

And as the pandemic has brought interoperability plans to their knees, Cerner is pushing federal projects to modernize the government’s healthcare IT infrastructure.

A United States Department of Veterans Affairs hospital was put into operation with a new Cerner EHR platform over the weekend. This was an important step in the agency’s broad competitive program.

This is the first commissioning of the beleaguered $ 16 billion tech project which has suffered from delays, operating revenue, snowballing expenses, and operational issues since its launch in 2018.

Wednesday’s results are accompanied by another announcement: that Naughton will be stepping down and his successor has yet to be selected.

“While acknowledging investor concerns about [Cerner’s] uneven history of succession planning, we believe the transition is a net positive that offers [Cerner] the opportunity to deliver on the value proposition of the more thoughtful investor. “From an evaluation point of view, this can create significant opportunities.”