Industry round-up: Cerner, DR Systems, Etreby Computer, IBM, NovaRad, SIIM, Softek

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Cerner Corp. reported Q4 2006 of $543.2 million, up 41 percent over the year-ago quarter. Revenues for the period increased 17 percent to $380.8 million compared to $325.8 million a year ago. Full-year 2006 revenues increased 19 percent to $1.38 billion.

Fourth quarter 2006 bookings include a $154.2 million booking from Cerner’s contract with BT as part of the National Health Service (NHS) initiative to automate clinical processes and digitize medical records in London, England. Excluding the bookings related to the NHS initiative, bookings were $389 million, up 21 percent over Q4 2005 bookings of $320.8 million, the company said.

On a GAAP basis, Q4 2006 net earnings were $39.1 million, compared to Q4 2005 GAAP net earnings of $27.4 million. GAAP net earnings for the full year were $109.9 million.

Cerner’s adjusted fourth quarter 2006 net earnings were $34.0 million, which is 24 percent higher than the $27.4 million of net earnings in the fourth quarter of 2005.

Cerner also announced its intent to acquire Etreby Computer Company, a software provider of retail pharmacy management systems. The acquisition will expand Cerner’s pharmacy systems portfolio, adding innovative solutions and services to serve the independent, supermarket-associated and chain retail pharmacies.

DR Systems announced 12 new contracts with healthcare facilities for its Unity RIS/PACS, totaling more than $7.4 million. The contract signings came toward the end of 2006, and are from a variety of institutions, from diagnostic imaging centers to large hospitals. The largest contract was for more than $1.1 million, with the smallest contract at just over $200,000. The 12 new facilities awarding the contracts are:
  • Advanced Imaging of Robinson (McKees Rocks, Penn.)
  • Moran, Rowen and Dorsey (Orange, Calif.)
  • Bakersfield Memorial Hospital (Bakersfield, Calif.)
  • Memorial Hospital and Health Care Center (Jasper, Ind.)
  • Community Hospital of San Bernardino (San Bernardino, Calif.)
  • Alhambra Hospital Medical Center (Alhambra, Calif.)
  • Sarah Bush Lincoln Health Center (Matton, Ill.)
  • Advanced Imaging Center of Amarillo (Amarillo, Tex.)
  • Klamath Radiology Associates (Klamath Falls, Ore.)
  • Skagit Valley Hospital (Mt. Vernon, Wash.)
  • Island hospital (Anacortes, Wash.)
  • United General Hospital (Sedro-Woolley, Wash.)

IBM announced plans to purchase data migration, data replication and disaster recovery software provider Softek Storage Solutions. Investcorp Technology Partners has agreed to sell its stake in Vienna, Va.-based Softek. The acquisition of Softek by IBM is anticipated to close during the first quarter of the 2007 calendar year, upon receipt of regulatory approvals and completion of other customary closing conditions. Financial terms were not disclosed. Softek's software enables a simple, unified approach when moving and managing data across storage vendor platforms and operating system environments, as part of an information technology (IT) infrastructure change. Using Softek's Nonstop Data Mobility software solutions, clients can improve their ability to migrate data while keeping data online and applications available for end users, according to a release.

Upon completion of the transaction, Softek will become part of the Storage and Data Services business unit in IBM Global Technology Services.

"Clients increasingly recognize that their digital storage needs are of utmost importance to doing business, and our industry-leading data migration offerings are trusted by the world's top companies," said Steven Murphy, president and chief executive officer of Softek. "We are excited to continue to address these client needs as part of IBM, even as we thank Investcorp and its co-investors in supporting our growth to date."

NovaRad has named Randy Graham as vice president of International Business Development.

As the head of international business development, Graham will work to further developing the company’s worldwide customer base. He will represent NovaRad’s complete product line including: NovaPACS, NovaRIS, NovaPACS Enterprise Archive, and NovaWeb Server. Graham came to NovaRad from Intel where he held international management roles. During his 15 years at Intel, he spent much of his time living and working abroad. He earned an MBA and a BS in finance from Brigham Young University.

The Society for Imaging Informatics in Medicine (SIIM) has announced the second year of its scholarship program