Other second quarter highlights from Cerner:

• Second quarter cash collections of $447.0 million and operating cash flow of $110.2 million.
• Free cash flow of $65.6 million.  Free cash flow is a non-GAAP financial measure defined as operating cash flow less capital expenditures and capitalized software. For more detail, please see the accompanying schedule, titled “Reconciliation of GAAP Operating Cash Flow to non-GAAP Free Cash Flow.”
• Days sales outstanding of 88 days compared to 89 days in the first quarter of 2010 and 100 days in the year-ago quarter.
• Total revenue backlog of $4.48 billion, up 21 percent over the year-ago quarter.  This is comprised of $3.85 billion of contract backlog and $637 million of support and maintenance backlog.

Future Period Guidance; Cerner currently expects:

• Third quarter 2010 revenue between $455 million and $470 million.
• Third quarter 2010 adjusted diluted earnings per share before share based compensation expense between $0.71 and $0.76.
• Third quarter 2010 new business bookings between $450 million and $480 million.
• Full-year 2010 revenue between $1.83 billion and $1.875 billion, which is up from a prior range of $1.80 billion and $1.875 billion.
• Full-year 2010 adjusted diluted earnings per share before share based compensation expense between $2.85 and $2.92, which is up from a prior range of $2.80 and $2.90.
• Share based compensation expense to reduce diluted earnings per share by approximately $0.04 to $0.05 in the third quarter of 2010 and between $0.17 and $0.18 for the year.