Operating profit plummeted for the technology solutions division of McKesson Corp. as revenue barely grew during the first quarter of fiscal 2011, ended June 30.
The division of San Francisco-based McKesson had operating profit of $64 million for the first quarter, down 38 percent from the same period a year ago. Continued investment in enterprisewide clinical and financial applications affected profit, according to the company.
First quarter revenue at the technology division rose 2 percent to $759 million. Services revenue increased 1 percent, reflecting higher software maintenance revenue partly offset by lower implementation revenue, as the sale of more complex enterprise systems leads to longer installation cycles, the company says. Software sales increased 4 percent to $135 million, and hardware sales were up 21 percent to $29 million. More information is available at mckesson.com.
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