US-headquartered healthcare application provider, Cerner has had a ‘record year’ reporting 19% growth in revenue to $2.2b in FY11, 37% growth in bookings to $2.7b and a 29% increase in net earnings to $307m. A pretty good performance by anyone's standards!
Cerner’s home US market was the main source of growth in 2011. Domestic revenue grew 21% to $1.89b in FY11, whilst global revenue increased by 7% to $309m across the year. After a slow start to 2011, the international business had a great Q4, reporting a 35% increase in revenue to $92m thanks to strong performances in Canada, Australia and the Middle East.
What, you may ask, about Cerner’s UK business? As regular UKHotViews readers will know, Cerner is the main application provider working with BT to deliver systems to acute trusts in London and the South of England under the erstwhile National Programme for IT in the NHS (NPfIT). So, how has it fared as a key supplier to NPfIT? There isn’t any detail in Cerner’s results, but Executive Vice President Zane Burke was keen to point out that “despite continuing coverage of changes to the National Programme, we are continuing to execute”. Indeed, he confirmed a contract extension with the NHS in Q4 and that Cerner has expanded its relationship with 2 trusts. Going forwards, Zane believes, and we agree, that Cerner is well-positioned for growth in the UK. As NPfIT makes way for local procurements Cerner will have more opportunities to sell directly to trusts – rather than through either an SI or a central procurement - and in all regions (not just London and the South). Of course, it is far from the only supplier eyeing the opportunity and the NPfIT rollout hasn’t been plain sailing, but its experience with the NHS and strong brand should count in its favour.