Revenue during the quarter grew 7.02 percent to $1,257.82 million from $1,175.29 million in the previous year period. Gross margin for the quarter expanded 14 basis points over the previous year period to 17.09 percent. Total expenses were 83.14 percent of quarterly revenues, up from 80.67 percent for the same period last year. That has resulted in a contraction of 247 basis points in operating margin to 16.86 percent.

Operating income for the quarter was $212.03 million, compared with $227.13 million in the previous year period.

However, the adjusted operating income for the quarter stood at $293.49 million compared to $290.54 million in the prior year period. At the same time, adjusted operating margin contracted 139 basis points in the quarter to 23.33 percent from 24.72 percent in the last year period.

"I am pleased with our results in the fourth quarter, with all of our key metrics in our expected ranges," said Zane Burke, Cerner president. "Our results included particular strength in new client wins, and we enter 2017 with a strong competitive position, a significant pipeline, and a solid growth outlook."

For the first-quarter 2017, Cerner Corporation projects revenue to be in the range of $1,200 million to $1,275 million. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.57 to $0.59. 
For financial year 2017, Cerner Corporation projects revenue to be in the range of $5,100 million to $5,300 million. The company forecasts diluted earnings per share to be in the range of $2.44 to $2.56 on adjusted basis.

The company has spent $789.77 million cash to meet investing activities during the year as against cash outgo of $1,405.94 million in the last year.

The company has spent $586.65 million cash to carry out financing activities during the year as against cash inflow of $236.25 million in the last year period.

Cash and cash equivalents stood at $170.86 million as on Dec. 31, 2016, down 57.51 percent or $231.26 million from $402.12 million on Jan. 02, 2016.

Working capital drops significantly
Cerner Corporation has witnessed a decline in the working capital over the last year. It stood at $773.96 million as at Dec. 31, 2016, down 26.29 percent or $276.01 million from $1,049.97 million on Jan. 02, 2016. Current ratio was at 1.92 as on Dec. 31, 2016, down from 2.35 on Jan. 02, 2016.

Cash conversion cycle (CCC) has decreased to 24 days for the quarter from 31 days for the last year period. Days sales outstanding went down to 34 days for the quarter compared with 40 days for the same period last year.

Days inventory outstanding was almost stable at 1 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 10 days for the quarter, when compared with the previous year period.