exv99w2

Exhibit 99.2

CONTACTS:
INVESTORS: Allan Kells, (816) 201-2445
akells@cerner.com

MEDIA: Justin Scott, (816) 201-6438
jscott@cerner.com

CERNER’S INTERNET HOME PAGE:
http://www.cerner.com

CERNER DELIVERS RECORD EARNINGS AND CASH FLOW
New Business Bookings near all-time high

KANSAS CITY, Mo. – Feb. 3, 2005 — Cerner Corporation (NASDAQ:CERN) today announced results for the 2004 fourth quarter ended Jan. 1, 2005, delivering record earnings and cash flow. Diluted earnings per share were $0.56 in the fourth quarter. Analysts’ consensus estimates for fourth quarter earnings per share were $0.54. For the year, diluted earnings per share were $1.72, including a gain on the sale of Zynx Health, Incorporated, in the first quarter that increased earnings per share by $0.05 and an accrued vacation pay adjustment in the third quarter that decreased earnings per share by $0.06. Earnings per share were a record for the quarter and year.

Fourth quarter revenues increased 9 percent to $248.2 million compared to $227.4 million in the year-ago quarter. Full-year 2004 revenues increased 10 percent to $926.4 million compared to $839.6 million in 2003.

Net earnings in the 2004 fourth quarter were $21.4 million, up 32 percent over the fourth quarter of 2003. Net earnings for 2004 were $64.6 million up 51 percent compared to 2003. Net earnings prior to the gain on the sale of Zynx Health and the accrued vacation pay adjustment were $64.9 million in 2004. Net earnings were a record for the quarter and year.

New business bookings revenue in the fourth quarter was $244.8 million, which is up 13 percent over the third quarter of 2004 and is the second highest level of new business bookings in the Company’s history. The highest level was $255 million in the fourth quarter of 2003, which included an unusually large transaction that was in excess of $50 million.

The Company generated record operating cash flow of $55.7 million in the fourth quarter driven by strong cash collections and reflective of continued operational improvements. Full-year 2004 operating cash flow was also a record at $168.3 million.

Other Fourth Quarter and Full-Year 2004 Highlights:

•   Record cash collections of $256.2 million in the fourth quarter and $937.6 million for the year.

•   Days Sales Outstanding (DSOs) of 104 days in the fourth quarter. DSOs for the full-year 2004 were 105 days compared to 110 days in 2003.

•   Operating margin of 14.8 percent for the fourth quarter and 12.0 percent for the full-year. The full-year 2004 operating margin without the impact of the vacation accrual adjustment in the third quarter of 2004 was 12.4 percent and reflects an increase of 310 basis points compared to the 9.3 percent operating margin in 2003.

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•   Total revenue backlog of $1.54 billion, up 23 percent over the year-ago quarter. This is comprised of $1.19 billion of contract backlog and $347.7 million of support and maintenance backlog.

•   A record of 354 Cerner MillenniumÒ solutions were implemented during the quarter. Cerner has now turned on over 3,700 Cerner Millennium solutions at nearly 750 client facilities worldwide.

•   The number of Cerner client locations using Computerized Physician Order Entry increased from approximately 200 at the end of 2003 to nearly 380 at the end of 2004.

“Our fourth quarter and full-year 2004 results reflect the strongest overall performance in our history,” said Neal Patterson, Cerner’s co-founder, Chairman and Chief Executive Officer. “We generated strong margin expansion and cash flow and demonstrated our superior ability to deliver value to our clients by implementing a record number of Cerner Millennium solutions.”

“We continue to believe that Cerner remains well positioned in the very active healthcare information technology sector,” added Patterson. “We believe Cerner’s single architecture approach and depth and breadth of solutions and services uniquely position us to play a major role in providing a network for healthcare information that connects families, physicians, hospitals, clinics, laboratories and pharmacies across major metropolitan and rural areas. This vision and our abilities align with the Government’s consideration of a national health information network that is needed to reduce costs and improve safety in our healthcare system.”

Future Period Guidance
Cerner expects earnings per share in the first quarter of 2005 to be between $0.41 and $0.42, which is approximately 25 percent over the first quarter of 2004. The Company expects revenue in the first quarter to be approximately $250 million to $255 million.

For 2005, the Company expects earnings per share between $2.07 and $2.12, which is up from the prior range of $2.05 to $2.10. Cerner expects revenue for 2005 to be between $1.08 billion and $1.1 billion, which is up from the prior range of $1.01 billion to $1.03 billion.

Cerner Board Member Announcement
Cerner also announced that former U.S. Senator John C. Danforth has re-joined its Board of Directors, effective today. Senator Danforth brings invaluable experience from his 18 years as a U.S. Senator where he was a long-time member of the Senate Finance Committee. Danforth recently stepped down as U.S. Ambassador to the United Nations, affording him the opportunity to re-join the Cerner Board.

Earnings Conference Call
Cerner will host an earnings conference call to provide additional detail at 3:30 p.m. CT on February 3, 2005. The dial-in number for the call is (617) 786-2903 and the replay number is (617) 801-6888 (Pass code: 90190036). The call will also be Web cast and available both live and archived on Cerner’s Web site at www.cerner.com in the Investors’ section under Presentation and Webcasts. Please access the site fifteen minutes early to register and to download and install any necessary audio software. For those who cannot listen to the live broadcast, replays will be made available shortly after the call and will run for two weeks. A copy of the script used during the call will also be available at www.cerner.com in the Investors’ section under Presentation and Webcasts.

Cerner Corp. is taking the paper chart out of healthcare, eliminating error, variance and waste in the care process. With more than 1,500 clients worldwide, Cerner is the leading supplier of healthcare information technology. The following are trademarks of Cerner: Cerner, Cerner Millennium, and Cerner’s logo. (Nasdaq:CERN), www.cerner.com.

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This release contains forward-looking statements that involve a number of risks and uncertainties. It is important to note that the Company’s performance, and actual results, financial condition or business could differ materially from those expressed in such forward-looking statements. The words “believe”, “expects”, “guidance”, or 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: quarterly operating results may vary, stock price may be volatile, market risk of investments, potential impairment of goodwill, changes in the healthcare industry, significant competition, the Company’s proprietary technology may be subjected to infringement claims or may be infringed upon, regulation of the Company’s software by the U.S. Food and Drug Administration or other government regulation, the possibility of product-related liabilities, possible system errors or failures or defects in the performance of the Company’s software, risks associated with the Company’s global operation and the recruitment and retention of key personnel. Additional discussion of these and other factors affecting the Company’s business is contained in the Company’s periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial condition or business over time.

# # #

Exhibit 99.2 (cont.)

CERNER CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS


				Note (1) (2)
	Three Months						Three Months
	Ended			YTD			Ended			YTD
(In thousands, except per share data)	January 1, 2005			January 1, 2005			January 3, 2004			January 3, 2004

Revenue
System sales	$	99,614			351,861			90,820			332,349
Support, maintenance and services		141,273			542,414			128,849			476,795
Reimbursed travel		7,285			32,081			7,740			30,443


Total revenue		248,172			926,356			227,409			839,587

Margin
System sales		65,113			236,058			65,372			221,093
Support, maintenance and services		128,961			493,950			114,530			424,204


Total margin		194,074			730,008			179,902			645,297


Operating expenses
Sales and client service		97,635			383,628			93,197			352,728
Software development		43,429			171,589			41,066			156,236
General and administrative		16,321			63,327			16,862			58,236


Total operating expenses		157,385			618,544			151,125			567,200


Operating earnings		36,689			111,464			28,777			78,097

Interest income		1,663			3,022			325			1,219
Interest expense		(2,323	)		(9,174	)		(2,190	)		(8,236	)
Other income, (expense)		(284	)		2,608			(25	)		142


Non-operating expense, net		(944	)		(3,544	)		(1,890	)		(6,875	)

Earnings before income taxes		35,745			107,920			26,887			71,222
Income taxes		(14,319	)		(43,272	)		(10,679	)		(28,431	)


Net earnings	$	21,426			64,648			16,208			42,791



Basic earnings per share	$	0.59			1.79			0.46			1.21


Basic weighted average shares outstanding		36,495			36,087			35,494			35,355


Diluted earnings per share	$	0.56			1.72			0.44			1.18


Diluted weighted average shares outstanding		38,055			37,571			36,935			36,356

Note 1: Includes a charge for vacation accrual of $3.3 million included in general and adminstrative. The impact of this charge is a $2.1 million decrease, net of $1.2 million tax benefit, in net earnings and a decrease to diluted earnings per share of $.06 for 2004.

Note 2: Includes a gain on the sale of Zynx Health Incorporated included in other income, (expense). The impact of this gain is a $1.8 million increase, net of $1.2 million tax expense, in net earnings and an increase to diluted earnings per share of $.05 for 2004.

Exhibit 99.2 (cont.)

CERNER CORPORATION
NON-GAAP
CONSOLIDATED STATEMENTS OF EARNINGS


	Three Months						Three Months
	Ended			YTD			Ended			YTD
(In thousands, except per share data)	January 1, 2005			January 1, 2005			January 3, 2004			January 3, 2004

Revenue
System sales	$	99,614			351,861			90,820			332,349
Support, maintenance and services		141,273			542,414			128,849			476,795
Reimbursed travel		7,285			32,081			7,740			30,443


Total revenue		248,172			926,356			227,409			839,587
Margin
System sales		65,113			236,058			65,372			221,093
Support, maintenance and services		128,961			493,950			114,530			424,204


Total margin		194,074			730,008			179,902			645,297

Operating expenses
Sales and client service		97,635			383,628			93,197			352,728
Software development		43,429			171,589			41,066			156,236
General and administrative		16,321			59,981			16,862			58,236


Total operating expenses		157,385			615,198			151,125			567,200


Operating earnings		36,689			114,810			28,777			78,097

Interest income		1,663			3,022			325			1,219
Interest expense		(2,323	)		(9,174	)		(2,190	)		(8,236	)
Other income, (expense)		(284	)		(415	)		(25	)		142


Non-operating expense, net		(944	)		(6,567	)		(1,890	)		(6,875	)

Earnings before income taxes		35,745			108,243			26,887			71,222
Income taxes		(14,319	)		(43,345	)		(10,679	)		(28,431	)


Net earnings	$	21,426			64,898			16,208			42,791



Basic earnings per share	$	0.59			1.80			0.46			1.21


Basic weighted average shares outstanding		36,495			36,087			35,494			35,355


Diluted earnings per share	$	0.56			1.73			0.44			1.18

Diluted weighted average shares outstanding		38,055			37,571			36,935			36,356

RECONCILIATION OF NON-GAAP
TO GAAP CONSOLIDATED STATEMENTS OF OPERATIONS


	Three Months					Three Months
	Ended		YTD			Ended		YTD
(In thousands, except per share data)	January 1, 2005		January 1, 2005			January 3, 2004		January 3, 2004

Non-GAAP net income	$	21,426		64,898			16,208		42,791
Vacation accrual		—		(3,346	)		—		—
Income tax effect		—		1,270			—		—
Gain on sale of Zynx		—		3,023			—		—
Income tax effect		—		(1,197	)		—		—


GAAP net income	$	21,426		64,648			16,208		42,791



Basic earnings per share	$	0.59		1.79			0.46		1.21


Basic weighted average shares outstanding		36,495		36,087			35,494		35,355


Diluted earnings per share	$	0.56		1.72			0.44		1.18


Diluted weighted average shares outstanding		38,055		37,571			36,935		36,356

Exhibit 99.2 (cont.)

CERNER CORPORATION
CONSOLIDATED BALANCE SHEETS


(In thousands)	January 1,			January 3,
	2005			2004
Assets

Cash and cash equivalents	$	189,784			121,839
Receivables, net		282,199			256,574
Inventory		7,373			12,434
Prepaid expenses and other		30,117			33,057


Total current assets		509,473			423,904

Property and equipment, net		230,440			204,953
Software development costs, net		157,765			141,090
Goodwill, net		54,600			51,573
Intangible assets, net		22,690			24,036
Other assets		7,288			8,017
Investments		9			692


Total assets	$	982,265			854,265


Liabilities

Accounts payable	$	37,008			20,753
Current installments of long-term debt		21,908			21,162
Deferred revenue		77,445			64,879
Deferred income taxes		1,301			15,586
Accrued payroll and tax withholdings		55,819			45,004
Other accrued expenses		5,763			10,095


Total current liabilities		199,244			177,479


Long-term debt		108,804			124,570
Deferred income taxes		69,863			54,425
Deferred revenue		5,703			1,945


Total liabilities		383,614			358,419


Minority owners’ equity interest in subsidiary		1,166			1,166

Stockholders’ Equity

Common stock		381			371
Additional paid-in capital		271,116			236,969
Retained earnings		344,011			279,363
Treasury stock, at cost (1,502,999 shares in 2004 and 2003)		(26,793	)		(26,793	)
Foreign currency translation adjustment		8,770			4,770


Total stockholders’ equity		597,485			494,680

Total liabilities and equity	$	982,265			854,265

	•	Record cash collections of $256.2 million in the fourth quarter and $937.6 million for the year.

	•	Days Sales Outstanding (DSOs) of 104 days in the fourth quarter. DSOs for the full-year 2004 were 105 days compared to 110 days in 2003.

	•	Operating margin of 14.8 percent for the fourth quarter and 12.0 percent for the full-year. The full-year 2004 operating margin without the impact of the vacation accrual adjustment in the third quarter of 2004 was 12.4 percent and reflects an increase of 310 basis points compared to the 9.3 percent operating margin in 2003.

	•	Total revenue backlog of $1.54 billion, up 23 percent over the year-ago quarter. This is comprised of $1.19 billion of contract backlog and $347.7 million of support and maintenance backlog.

	•	A record of 354 Cerner MillenniumÒ solutions were implemented during the quarter. Cerner has now turned on over 3,700 Cerner Millennium solutions at nearly 750 client facilities worldwide.

	•	The number of Cerner client locations using Computerized Physician Order Entry increased from approximately 200 at the end of 2003 to nearly 380 at the end of 2004.

Note 1:	Includes a charge for vacation accrual of $3.3 million included in general and adminstrative. The impact of this charge is a $2.1 million decrease, net of $1.2 million tax benefit, in net earnings and a decrease to diluted earnings per share of $.06 for 2004.

Note 2:	Includes a gain on the sale of Zynx Health Incorporated included in other income, (expense). The impact of this gain is a $1.8 million increase, net of $1.2 million tax expense, in net earnings and an increase to diluted earnings per share of $.05 for 2004.