Cerner Announces Share Repurchase Program
November 14 2016 - 9:05AM
Cerner Corporation (Nasdaq:CERN) today announced that its board of
directors approved a stock repurchase program on November 10, 2016,
authorizing the repurchase of up to $500 million of its common
stock. The company plans to repurchase shares from time to
time in the open market, by block purchase, or possibly through
other transactions managed by broker-dealers. No time limit was set
for completion of the program.
Based on the November 11, 2016 closing price,
approximately 10.3 million shares, or 3.1 percent of the
company’s outstanding shares, could be repurchased. The repurchase
will be funded from working capital. The previous $300 million
stock repurchase program approved by Cerner’s board of directors in
March 2016 has been completed.
“We believe the repurchase of our stock is a
good use of funds at current prices,” said Marc Naughton, executive
vice president and CFO of Cerner. “This program reflects our
confidence in Cerner’s growth prospects and our commitment to
enhancing long-term shareholder value.”
About Cerner
Cerner’s health information technologies connect people,
information and systems at more than 25,000 facilities worldwide.
Recognized for innovation, Cerner solutions assist clinicians in
making care decisions and enable organizations to manage the health
of populations. The company also offers an integrated clinical and
financial system to help health care organizations manage revenue,
as well as a wide range of services to support clients’ clinical,
financial and operational needs. Cerner’s mission is to contribute
to the systemic improvement of health care delivery and the health
of communities. Nasdaq: CERN. For more information about
Cerner, visit cerner.com, read our blog at blogs.cerner.com,
connect with us on Twitter
at twitter.com/cerner and on Facebook at
facebook.com/cerner. Our website, blog, Twitter account and
Facebook page contain a significant amount of information about
Cerner, including financial and other information for
investors.
All statements in this press release that do not directly and
exclusively relate to historical facts constitute forward-looking
statements. These forward-looking statements are based on the
current beliefs, expectations and assumptions of Cerner's
management with respect to future events and are subject to a
number of significant risks and uncertainties. It is
important to note that Cerner's performance, and actual results,
financial condition or business could differ materially from those
expressed in such forward-looking statements. The words “plans”,
“intend”, “believe”, “will”, “prospects” 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; the possibility
of increased expenses, exposure to claims and regulatory actions
and reputational harm associated with a cyberattack or other breach
in our IT security; 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; material adverse resolution of legal proceedings; risks
associated with our global operations; risks associated with
fluctuations in foreign currency exchange rates; the potential for
tax legislation initiatives that could adversely affect our tax
position and/or challenges to our tax positions in the U.S. and
non-U.S. countries; risks associated with our recruitment and
retention of key personnel; risks related to our dependence on
third party suppliers; difficulties and operational and financial
risks associated with successfully completing the integration of
the Cerner Health Services (formerly Siemens Health Services)
business into our business or the failure to realize the synergies
and other benefits expected from the acquisition; risks inherent
with business acquisitions and combinations and the integration
thereof; the potential for losses resulting from asset impairment
charges; risks associated with volatility and disruption resulting
from global economic or market conditions; managing growth in the
new markets in which we offer solutions, health care devices or
services; continuing to incur significant expenses relating to the
integration of the Cerner Health Services business into Cerner;
risks inherent in contracting with government clients; risks
associated with our outstanding and future indebtedness, such as
compliance with restrictive covenants, which may limit our
flexibility to operate our business; changing political, economic,
regulatory and judicial influences, which could impact the
purchasing practices and operations of our clients and increase
costs to deliver compliant solutions and services; government
regulation; significant competition and our ability to respond to
market changes and changing technologies; variations in our
quarterly operating results; potential inconsistencies in our sales
forecasts compared to actual sales; volatility in the trading price
of our common stock and the timing and volume of market activity;
and our directors’ authority to issue preferred stock and the
anti-takeover provisions in our corporate governance documents.
Additional discussion of these and other risks, uncertainties and
factors affecting Cerner's business is contained in Cerner's
filings with the Securities and Exchange Commission. The reader
should not place undue reliance on forward-looking statements,
since the statements speak only as of the date that they are made.
Except as required by law, Cerner undertakes no obligation to
update forward-looking statements to reflect changed assumptions,
the occurrence of unanticipated events, or changes in our business,
results of operations or financial condition over time.
Investor Contact: Allan Kells, (816) 201-2445, akells@cerner.com
Media Contact: Dan Smith, (913) 304-3991, dan.smith1@cerner.com
Cerner’s Internet Home Page: www.cerner.com
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