exv99w1

Exhibit 99.1

Investor Contact: Allan Kells, (816) 201-2445, akells@cerner.com
Media Contact: Sarah Bond, (816) 885-8020, sarah.bond@cerner.com
Cerner’s Internet Home Page: www.cerner.com

Cerner Reports Third Quarter 2009 Results
Record Bookings, Strong Cash Flow and Earnings

KANSAS CITY, Mo. — October 28, 2009 — Cerner Corp. (NASDAQ: CERN) today announced results for the 2009 third quarter that ended October 3, 2009, delivering record levels of bookings, and strong cash flow and earnings.

Bookings in the third quarter of 2009 were $424.3 million, up 11% from $383.6 million in the third quarter of 2008 and a record for third quarter bookings. Third quarter revenue was $409.4 million, which is a 3% decrease from the year-ago period.

On a Generally Accepted Accounting Principles (GAAP) basis, third quarter 2009 net earnings were $48.4 million, and diluted earnings per share were $0.57. Third quarter 2008 GAAP net earnings were $45.0 million, and diluted earnings per share were $0.54.

Adjusted (non-GAAP) Earnings

Adjusted third quarter 2009 net earnings were $51.3 million, compared to $47.4 million of adjusted net earnings in the third quarter of 2008. Adjusted diluted earnings per share were $0.61 in the third quarter of 2009 compared to $0.57 in the third quarter of 2008. Analysts’ consensus estimate for third quarter 2009 adjusted diluted earnings per share was $0.61.

Adjusted Net Earnings is not a recognized term under GAAP and should not be substituted for net earnings as a measure of the Company’s performance but instead should be utilized as a supplemental measure of financial performance in evaluating our business. Following is a description of adjustments made to third quarter net earnings. For more detail, please see the accompanying schedule, titled “Reconciliation of Adjusted Net Earnings and Adjusted Diluted Earnings Per Share to GAAP Net Earnings and Diluted Earnings Per Share.”

Adjusted third quarter 2009 and 2008 net earnings and diluted earnings per share exclude the impact of accounting pursuant to Statement of Financial Accounting Standards (SFAS) No. 123R, Share-Based Payment, which requires the expensing of stock options. The effect of accounting under SFAS 123R reduced third quarter 2009 net earnings and diluted earnings per share by $3.0 million and $0.04, respectively, and reduced third quarter 2008 net earnings and diluted earnings per share by $2.4 million and $0.03, respectively.

Other Third Quarter Highlights:

	•		Third quarter cash collections of $410.6 million and operating cash flow of $73.4 million.

	•		Days sales outstanding of 105 days compared to 100 days in the second quarter of 2009 and 93 days in the year-ago quarter.

	•		Total revenue backlog of $3.85 billion, up 13 percent over the year-ago quarter. This is comprised of $3.25 billion of contract backlog and $604 million of support and maintenance backlog.

“Our execution was solid in the third quarter, which included strong bookings, earnings, and cash flow,” said Neal Patterson, Cerner co-founder, chairman and chief executive officer. “We are also encouraged by

leading indicators that reflect demand beginning to be driven by the Health Information Technology for Economic and Clinical Health (HITECH) provisions in the American Recovery and Reinvestment Act of 2009 (ARRA). We believe HITECH will continue to be a driver of demand for several years as healthcare organizations embrace technology to create a safer, more efficient, and higher-quality healthcare system,” Patterson said.

Future Period Guidance

Cerner currently expects:

	•		Fourth quarter 2009 revenue between $435 million and $465 million.

	•		Fourth quarter 2009 adjusted diluted earnings per share before stock options expense between $0.68 and $0.74.

	•		Fourth quarter 2009 new business bookings between $425 million and $475 million.

	•		SFAS No. 123R share-based compensation expense to reduce diluted earnings per share by approximately $0.03 to $0.04 in the fourth quarter of 2009.

Earnings Conference Call

Cerner will host an earnings conference call to provide additional detail on third quarter results at 3:30 p.m. CT on October 28. The dial-in number for the conference call is (617) 213-8860; the passcode is Cerner. The company recommends joining the call 15 minutes early for registration. The re-broadcast of the call will be available from 6:30 p.m. CT, October 28 through 11:59 p.m. CT, October 31. The dial-in number for the re-broadcast is (617) 801-6888; the passcode is 41281702.

An audio webcast will be available live and archived on Cerner’s Web site at www.cerner.com under the About Cerner section (click Investors, then Presentations and Webcasts).

About Cerner

Cerner is transforming healthcare by eliminating error, variance and waste for healthcare providers and consumers around the world. Cerner solutions optimize processes for healthcare organizations ranging in size from single-doctor practices, to health systems, to entire countries, for the pharmaceutical and medical device industries, and for the healthcare commerce system. These solutions are licensed by more than 8,000 facilities around the world, including approximately 2,100 hospitals; 3,300 physician practices covering more than 30,000 physicians; 500 ambulatory facilities, such as laboratories, ambulatory centers, cardiac facilities, radiology clinics and surgery centers; 600 home-health facilities; and 1,500 retail pharmacies. The following are trademarks of Cerner: Cerner and Cerner’s logo. Nasdaq: CERN. For more information about Cerner, please visit our Web site at www.cerner.com.

This release contains forward-looking statements that involve a number of risks and uncertainties. It is important to note that the Company’s performance, and actual results, financial condition or business could differ materially from those expressed in such forward-looking statements. The words “encouraged,” “leading indicators,” ”believe,” “continue,” “guidance,” and “expects” or the negative of these words, variations thereof or similar expressions are intended to identify such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the possibility of product-related liabilities; potential claims for system errors and warranties; the possibility of interruption at our data centers or client support facilities; our proprietary technology may be subject to claims for infringement or misappropriation of intellectual property rights of others, or may be infringed or misappropriated by others; risks associated with our non-U.S. operations; risks associated with our ability to effectively hedge exposure to fluctuations in foreign currency exchange rates; risks associated with our recruitment and retention of key personnel; risks related to our reliance on third party suppliers; risks inherent with business acquisitions; changing political, economic and regulatory influences; government regulation; significant

competition and market changes; the current adverse financial market environment and uncertainty in global economic conditions; variations in our quarterly operating results; potential inconsistencies in our sales forecasts compared to actual sales; and the volatility in the trading price of our common stock. Additional discussion of these and other factors affecting the Company’s business is contained in the Company’s periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial condition or business over time.

# # #

CERNER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)


	Three Months			Nine Months			Three Months			Nine Months
	Ended			Ended			Ended			Ended
(In thousands, except per share data)	October 3, 2009 (1)			October 3, 2009 (1)			September 27, 2008 (1)			September 27, 2008 (1) (2)
Revenue
System sales	$	118,325		$	332,816		$	137,522		$	374,387
Support, maintenance and services		284,189			849,461			275,702			806,966
Reimbursed travel		6,901			23,266			9,504			28,940


Total revenue		409,415			1,205,543			422,728			1,210,293

Margin
System sales		70,391			200,689			89,226			240,064
Support, maintenance and services		269,545			802,955			261,185			761,751


Total margin		339,936			1,003,644			350,411			1,001,815


Operating expenses
Sales and client service		171,415			516,401			178,750			532,747
Software development		66,752			196,578			68,092			203,145

(Includes amortization of software development costs of $16,922 and $45,801 for the three and nine months ended October 3, 2009; and $13,197 and $37,622 for the three and nine months ended September 27, 2008.)
General and administrative		31,059			91,819			35,818			88,485


Total operating expenses		269,226			804,798			282,660			824,377


Operating earnings		70,710			198,846			67,751			177,438

Interest income		2,371			6,057			3,004			10,078
Interest expense		(2,191	)		(6,344	)		(2,576	)		(8,159	)
Other income		(3	)		414			(221	)		(392	)


Non-operating income (expense), net		177			127			207			1,527

Earnings before income taxes		70,887			198,973			67,958			178,965
Income taxes		(22,493	)		(66,004	)		(22,944	)		(61,847	)


Net earnings	$	48,394		$	132,969		$	45,014		$	117,118


Basic earnings per share	$	0.60		$	1.65		$	0.56		$	1.45


Basic weighted average shares outstanding		81,225			80,750			80,782			80,594

Diluted earnings per share	$	0.57		$	1.59		$	0.54		$	1.40


Diluted weighted average shares outstanding		84,172			83,576			83,681			83,594

Note 1: Operating expenses for the three months ended October 3, 2009 and September 27, 2008 and the nine months ended October 3, 2009 and September 27, 2008 include share-based compensation expense. The impact of this expense on net earnings is presented below:


	Three Months			Nine Months			Three Months			Nine Months
	Ended			Ended			Ended			Ended
	October 3, 2009			October 3, 2009			September 27, 2008			September 27, 2008

Sales and client service	$	2,315		$	5,401		$	2,033		$	5,599
Software development		1,132			3,134			830			2,227
General and administrative		1,258			3,676			1,017			3,044

Total Shared Based Compensation		4,705			12,211			3,880			10,870
Amount of related income tax benefit		(1,753	)		(4,549	)		(1,445	)		(4,049	)

Net impact on net earnings	$	2,952		$	7,662		$	2,435		$	6,821


Decrease to diluted earnings per share	$	0.04		$	0.09		$	0.03		$	0.08


Note 2: Includes the impact of the third party supplier settlement reported in the second quarter of 2008.

	Three Months			Nine Months			Three Months			Nine Months
	Ended			Ended			Ended			Ended
	October 3, 2009			October 3, 2009			September 27, 2008			September 27, 2008

Sales and client service	$	—		$	—		$	—		$	8,014
Amount of related income tax benefit		—			—			—			(2,984	)

Net impact on net earnings	$	—		$	—		$	—		$	5,030


Decrease to diluted earnings per share	$	—		$	—		$	—		$	0.06

CERNER CORPORATION
Reconciliation of Adjusted Net Earnings and Adjusted Diluted Earnings Per Share to
GAAP Net Earnings and Diluted Earnings Per Share¹
(unaudited)


Net Earnings	Three Months Ended			Nine Months Ended			Three Months Ended			Nine Months Ended
(In thousands)	October 3, 2009			October 3, 2009			September 27, 2008			September 27, 2008

Net earnings	$	48,394		$	132,969		$	45,014		$	117,118
Share-based compensation expense²		4,705			12,211			3,880			10,870
Income tax benefit of share-based compensation²		(1,753	)		(4,549	)		(1,445	)		(4,049	)
Third party supplier settlement²		—			—			—			8,014
Income tax benefit of supplier settlement²		—			—			—			(2,984	)

Adjusted net earnings (non-GAAP)	$	51,346		$	140,631		$	47,449		$	128,969


Diluted Earnings Per Share
Diluted earnings per share²	$	0.57		$	1.59		$	0.54		$	1.40
Share-based compensation expense (net of tax)²		0.04			0.09			0.03			0.08
Third party supplier settlement (net of tax)²		—			—			—			0.06

Adjusted diluted earnings per share (non-GAAP)	$	0.61		$	1.68		$	0.57		$	1.54

Note 1: The presentation of Adjusted Net Earnings, a Non-GAAP financial measure, is not meant to be considered in isolation, as a substitute for, or superior to, Generally Accepted Accounting Principles (GAAP) results and investors should be aware that non-GAAP measures have inherent limitations and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. Adjusted Net Earnings may also be different from similar non-GAAP financial measures used by other companies and may not be comparable to similarly titled captions of other companies due to potential inconsistencies in the method of calculation. The Company believes that Adjusted Net Earnings is important to enable investors to better understand and evaluate its ongoing operating results and allows for greater transparency in the review of its overall financial, operational and economic performance.

Note 2: The Company provides earnings with and without stock options expense and unique items such as the third party supplier settlement because earnings excluding these items are used by management along with GAAP results to analyze its business, make strategic decisions and for management compensation purposes.

CERNER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS


	October 3,			January 3,
	2009			2009
(In thousands)	(unaudited)
Assets

Cash and cash equivalents	$	367,972		$	270,494
Short-term investments		66,678			38,400
Receivables, net		470,071			468,928
Inventory		12,532			10,096
Prepaid expenses and other		90,194			69,553
Deferred income taxes		5,162			1,402


Total current assets		1,012,609			858,873

Property and equipment, net		506,331			483,399
Software development costs, net		232,138			218,811
Goodwill		150,823			146,666
Intangible assets, net		40,059			51,925
Long-term investments		95,250			105,300
Other assets		14,492			16,014


Total assets	$	2,051,702		$	1,880,988


Liabilities

Accounts payable	$	53,835		$	93,667
Current installments of long-term debt		24,896			30,116
Deferred revenue		100,847			107,554
Accrued payroll and tax withholdings		62,861			67,266
Other accrued expenses		64,411			42,620


Total current liabilities		306,850			341,223

Long-term debt		118,927			111,370
Deferred income taxes and other liabilities		105,142			100,546
Deferred revenue		14,972			15,554


Total liabilities		545,891			568,693


Stockholders’ Equity

Common stock		823			810
Additional paid-in capital		543,718			491,080
Retained earnings		993,067			860,098
Treasury stock		(28,002	)		(28,002	)
Accumulated other comprehensive loss		(3,915	)		(12,977	)

Total Cerner Corporation stockholders’ equity		1,505,691			1,311,009
Noncontrolling interest		120			1,286


Total stockholders’ equity		1,505,811			1,312,295


Total liabilities and stockholders’ equity	$	2,051,702		$	1,880,988