Operator
Welcome to Cerner Corporation s Fourth Quarter 2020 Conference Call. Today s date is February 10, 2021, and this call is being recorded.
The company has asked me to remind you that various remarks made here today constitute forward-looking statements including, without limitation, those regarding projections of future revenues or earnings, operating margins, operating and capital expenses, bookings, new solutions, services and offering development and capital allocation plans, cost optimization and operational improvement initiatives, future business outlook, the expected benefits of our acquisitions, divestitures or other investments or collaborations and the expected impact of the COVID-19 pandemic. Actual results may differ materially from those indicated by the forward-looking statements.
Kris Tripplaar/Sipa USA
Cerner Corp. on Wednesday posted $1.39 billion in revenue for 2020 s fourth quarter, down from $1.44 billion in revenue that the company reported for the same period in 2019.
Cerner executives attributed the 3.3% year-over-year dip in revenue to recentdivestitures, as well as the impact of the COVID-19 pandemic.
The company also reported $177.5 million in operating income, down 2.9% from $182.8 million posted in the year-ago quarter, and $141.5 million in net earnings, down 8.3% from $154.3 million one year prior.
The $1.39 billion revenue figure is consistent with earnings guidance the Kansas City, Mo.-based electronic health records company released in October, in which it pegged fourth quarter revenue to be in the range of $1.365 billion to $1.415 billion.
Dive Brief:
Health software giant Cerner is banking that the worst of COVID-19 s impact is behind it, calculating project and sales activity will only increase in 2021 following strong bookings growth in the fourth quarter.
The hope is that hospital budgets will continue to recover from the pandemic, allowing clients to reinvest in core health IT while Cerner also expands its data-as-a-service offerings, including in the clinical trials space, to make up for slowing growth in its core EHR business. But historic volatility has not yet abated, resulting in mixed 2021 expectations for the company in fourth quarter financial results released Wednesday afternoon.
Providence health system effective immediately. Hoffman has been serving as interim CFO since August.
Hoffman most recently served as chief transformation officer at Providence, and officials credited him with effectively shepherding the health system s financials in the second half of 2020 amid challenges presented by COVID-19.
Providence also announced two new regional leadership roles responsible for the northern and southern portions of Providence s seven-state footprint to report to
Rod Hochman, M.D., president and CEO of Providence.
Lisa Vance, chief executive of Oregon, will take on a new role as president of operations and strategy for the northern regions that Providence serves: Alaska, Oregon, Washington and Montana. She will continue to serve as chief executive of Oregon.
Cerner names new chief client and chief legal officers - Kansas City Business Journal bizjournals.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bizjournals.com Daily Mail and Mail on Sunday newspapers.