Cerner Earnings Call Insights: Changing End Market Environment and Q4 Bookings

Cerner Corporation (NASDAQ:CERN) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.

Changing End Market Environment

Ryan Daniels – William Blair: A lot of conversation tonight about population health and kind of the changing end market environment and how that positions you competitively. Can you talk about as you look at the pipeline if that’s manifesting solely in higher win rate today on new accounts or if you’re actually starting to see some competitive displacements enter that pipeline at this point?

Zane Burke – EVP, Client Organization: This is Zane, Ryan. What we’re seeing is a bit of both of that and what it is, it’s the vision for population health as we talked about the full operating system for a population health model and we have a robust business today in the population health space, but in terms of HIV in terms of some of the analytics that we do today. But it’s really the vision that we’re taking them on and we’re seeing that in the win rates increasing as well as we see that manifesting in the pipeline itself.

Ryan Daniels – William Blair: Given the investments that some of these larger systems have made with your primary competitor, is there anything you can do to make it more (palpable) to switch over or is it certain – just going to be the urgency of the need for better platforms and more data liquid in the future that forces that move even if they sunk a lot of money in to the system?