UnitedHealth Group (UNH)

Ingenix revenues of $421 million increased $40 million or 10 percent year-over-year in the second quarter of 2009.

Continued growth in consulting services and growth in governmental client business across many product categories more than offset a year-over-year decline in pharmaceutical research services backlog. The Ingenix contract revenue backlog increased 22 percent on a year-over-year basis to $2.2 billion at June 30, 2009.

Ingenix second quarter operating earnings increased $10 million or 20 percent year-over-year to $59 million. The operating margin expanded 110 basis points year-over-year due to operating leverage from revenue growth coupled with effective cost management and operating disciplines.

In June, Ingenix announced the acquisition of AIM Healthcare Services, a leader in payment accuracy for hospitals and payers. AIM strengthens Ingenix’s capabilities to simplify and improve administration in the health care industry. AIM personnel perform services for clients at nearly 2,000 medical center locations nationwide.

Ingenix revenues of $385 million increased $23 million or 6 percent year-over-year in the first quarter of 2009, despite economic pressures affecting market demand in the health information technology, consulting and pharmaceutical services markets.

Continued growth in consulting services and growth in governmental client business across many product categories more than offset a year-over-year decline in pharmaceutical services backlog. The Ingenix contract revenue backlog grew 6 percent on a year-over-year basis to $1.8 billion at March 31, 2009.

Ingenix first quarter operating earnings increased $2 million or 4 percent year-over-year to $49 million, with the operating margin stable year-over-year due to effective operating cost disciplines.

The management of Ingenix expects the market growth rate and related business opportunities in health information and technology to accelerate meaningfully over the next 18 to 36 months, driven by expanding market demand. Ingenix believes it is well positioned for market growth in electronic medical records, comparative effectiveness research, health information exchanges and connectivity, information security, and physician performance and payment accuracy solutions.

In April 2009 Ingenix announced that CareTracker, a web-based electronic medical record system for the physician office market, was available for as little as a $5,000 per year subscription to help physicians qualify for incentive payments under the American Recovery and Reinvestment Act. CareTracker helps clinicians enter, retrieve and correlate patient information at the point of care, and helps physician offices with performance measurement, revenue cycle management and related administrative tasks.

On a full year basis, Ingenix revenues increased $248 million or 19 percent to $1.6 billion, including an increase of $12 million or 3 percent year-over-year to $426 million in the fourth quarter of 2008.

Ingenix contract revenue backlog grew approximately $140 million or 8 percent on a year-over-year basis to approximately $1.85 billion at year end. Sales growth of 28 percent across the payer, provider, government and other market segments has been offset by the impact of cancellations in the pharmaceutical services business in 2008.

Ingenix full year 2008 earnings from operations of $229 million decreased $37 million or 14 percent year-over-year, with fourth quarter decreasing $44 million or 37 percent year-over-year. Lower full year and fourth quarter 2008 operating margins were attributable to costs related to cancelled contract research projects, employee severance and lower customer utilization of consulting services.

In 2008 Ingenix made important strides in the public sector, where sales increased 106 percent, and in growing its international health services consulting business, winning contracts to operate 6 primary care trusts in England.

Ingenix revenues increased $39 million, or 11 percent year-over-year, to $383 million in the third quarter of 2008.

Ingenix contract revenue backlog grew approximately $100 million or 6 percent on a year-over-year basis to approximately $1.85 billion as of September 30, 2008. Sales growth of 45 percent year-to-date across the payer, provider, government and other market segments has been offset by the impact of cancellations in the pharmaceutical services business in the first half of 2008.

Ingenix third quarter operating earnings decreased $9 million or 14 percent year-over-year to $57 million. Lower third quarter 2008 operating margins were attributable to the impact of lost revenues, excess staffing levels and severance costs related to cancelled contract research projects.

Ingenix revenues increased $97 million, or 34 percent year-over-year, to $381 million in the second quarter of 2008.

Ingenix contract revenue backlog grew more than $300 million or 23 percent on a year-over-year basis to nearly $1.8 billion as of June 30, 2008, despite research project cancellations by several pharmaceutical customers. Second quarter results included strong sales activity in all principal market sectors.

Ingenix second quarter operating earnings increased $7 million or 17 percent year-over-year to $49 million. Lower second quarter 2008 operating margins were attributable to the impact of staffing costs to support research projects which were cancelled.

Ingenix revenues increased $100 million, or 38 percent year-over-year, to $362 million in the first quarter of 2008. This gain reflects strong performance in both the pharmaceutical services and health intelligence businesses.

Ingenix contract revenue backlog grew approximately $0.5 billion or 38 percent on a year-over-year basis to nearly $1.7 billion as of March 31, 2008. Ingenix achieved record new order production in pharmaceutical services and strong sales activity in systems that provide complex data analysis for payers.

Ingenix first quarter operating earnings increased $9 million or 24 percent year-over-year to $47 million; the operating margin decreased 150 basis points from the first quarter 2007 from 14.5 percent to 13.0 percent. Growth in comparatively lower margin health care consulting services, such as public policy consulting, systems integration consulting, and large pharmaceutical services projects, has shifted the business mix somewhat and moderated the operating margin percentage at Ingenix year-over-year. Ingenix margins are expected to strengthen significantly from their first quarter level over the course of 2008 as the business proceeds through its normal seasonal cycle.

On a full year basis, Ingenix grew revenues by $348 million or 36 percent over 2006 results, with strong revenue growth across every major product line. In the fourth quarter of 2007, Ingenix revenues increased $113 million or 38 percent year-over-year and $70 million or 20 percent sequentially, to $414 million.

The Ingenix revenue backlog of $1.7 billion at December 31, 2007 increased 46 percent year-over-year, positioning Ingenix for continued growth performance in 2008.

Market demand for newer Ingenix offerings continues to expand. For example, data interchange volume tripled year-over-year in the fourth quarter of 2007, and Ingenix nearly doubled its in-house consulting capacity to more than 1,000 professionals over the course of the year.

Ingenix full year earnings from operations increased $90 million or 51 percent, with fourth quarter earnings from operations of $120 million, up $46 million or 62 percent year-over-year and $54 million or 82 percent from third quarter 2007. The full year 2007 operating margin of 20.4 percent improved 200 basis points over 2006. The fourth quarter 2007 operating margin of 29.0 percent increased 440 basis points year-over-year and 980 basis points on a sequential basis, due to seasonal demand for certain higher-margin Ingenix offerings.

Ingenix revenues increased $100 million or 40 percent year-over-year and $61 million or 21 percent sequentially, to $347 million in the third quarter of 2007.

The Ingenix revenue backlog reached a record $1.75 billion at September 30, 2007, increasing 46 percent year-over-year and led by new sales for clinical data services, drug safety services and clinical research services in the third quarter.

Ingenix third quarter operating earnings of $70 million increased $18 million or 35 percent year-over-year, and $26 million or 59 percent from second quarter 2007. The operating margin of 20.2 percent decreased 90 basis points year-over-year and increased 480 basis points on a sequential basis, as anticipated, due to seasonal demand for certain higher-margin Ingenix offerings.

Over the past two quarters Ingenix has brought new capabilities to the market in clinical and claim transaction connectivity and data interchange, physician practice management and revenue cycle management, and health care policy consulting services. These expand Ingenix’s ability to serve the data and health informatics needs of participants in the broad health system.

The expanding new product and service pipeline at Ingenix includes software-as-service applications for small physician offices, instant medication profiling for patients in hospitals, applications using advanced analytics to target treatments for specialized patient populations, and connectivity and artificial intelligence applications for next-generation claims transmission services.

Ingenix revenues increased $70 million, or 32 percent year-over-year and $23 million, or 9 percent sequentially, to $286 million in the second quarter of 2007.

The Ingenix contract revenue backlog reached a record $1.45 billion at June 30, 2007, increasing 31 percent year-over-year. Pharmaceutical services had a particularly strong sales quarter, with the pharmaceutical services portion of total contract backlog increasing 36 percent year-over-year.

Ingenix second quarter operating earnings increased $14 million or 47 percent year-over-year to $44 million, and $6 million or 16 percent from first quarter 2007. The operating margin of 15.4 percent expanded 150 basis points year-over-year and 100 basis points sequentially.

Ingenix revenues increased $55 million, or 26 percent year-over-year, to $263 million in the first quarter of 2007. This gain reflects strong growth performance and provides the most meaningful comparative measure of Ingenix results, due to the markedly seasonal sales characteristics of some key product lines.

The Ingenix contract revenue backlog grew 22 percent on a year-over-year basis, standing at $1.2 billion as of March 31, 2007. First quarter bookings included strong new order production in pharmaceutical services, connectivity solutions for payers and medical professionals, and claims reimbursement solutions for health care professionals.

Ingenix first quarter operating earnings increased $8 million or 27 percent year-over-year to $38 million, and the operating margin was consistent with the first quarter 2006 at 14.4 percent.