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Growing Momentum in Technology Solutions
In Technolo
gy
Solutions, we
g
rew revenues and
i
ncreased bookings in nearly all of our businesses. We
a
l
so ac
h
ieve
d
t
h
e
h
i
gh
est operatin
g
mar
g
in in recent
h
istor
y
. Additional hi
g
hli
g
hts included the
f
ollowin
g
:
฀

฀


฀
฀

฀

฀฀
Early in fiscal 2010, the American Recovery and
R
e
inv
est
m
e
n
t
A
ct
led
to
in
c
r
eased
custo
m
e
r
interest in our solutions. As the
y
ear pro
g
ressed,
stimulus-related purchasing accelerated, and we
saw stron
g
g
rowth in new bookin
g
s in the fourth
q
uarter, achievin
g
a solid
fi
nish to the
y
ear.
฀
฀฀
฀
฀

McKesson has long been a leader in solutions
that improve provider performance b
y
automatin
g
fi
nancial and administrative operations. In
fi
scal
2010, we extended our leadershi
p
p
osition
with the introduction of our next-
g
eneration
r
evenue c
y
cle s
y
stem, Horizon Enterprise Revenue
Management. Healthcare reform is expected to
st
im
u
l
ate
de
m
a
n
d
f
o
r
t
hi
s
inn
o
v
at
iv
e
so
l
ut
i
o
n
as
hospitals
f
ocus on streamlinin
g
their s
y
stems and
improving their financial performance.
Across our tec
h
no
l
o
gy
b
usinesses, we
h
ave s
h
arpene
d
our
f
ocus on execution, innovation, and collaboration,
and we maintain a positive outlook for the segment
i
n t
h
e comin
g
y
ear
.
S
ummary an
d
Out
l
oo
k
I
n summary, I am very pleased with our
fi
scal 2010
p
erformance, and I believe that our results
p
osition
McKesson
f
or continued success in
fi
scal 2011.
W
e have leading positions in very attractive
mar
k
ets,
l
on
g
-stan
d
in
g
customer re
l
ations
h
ips, an
d
tremendous
fi
nancial strength and
fl
exibility. Both
D
istribution Solutions and Technology Solutions are
pro
d
ucin
g
soun
d
operatin
g
resu
l
ts an
d
positive cas
h
fl
ow, providin
g
stron
g
momentum
f
or
fi
scal 2011.
B
ase
d
on our out
l
oo
k
, in A
p
ri
l
2010, our Boar
d
o
f Directors approved a
$
1 billion increase in our
share repurchase authorization, giving us additional
flexibilit
y
to deplo
y
our si
g
nificant cash balances.
A
dditionall
y
, in Ma
y
2010, the Board approved
a
change in our dividend policy, increasing the
a
mount of the Compan
y
’s re
g
ular quarterl
y
dividend
b
y
50%, from
$
0.12 per share to
$
0.18 per share.
W
it
h
t
h
e
b
est
l
ea
d
ers
h
ip team in t
h
e in
d
ustry, an
unequaled solution port
f
olio, and our dedicated
team o
f
32,500 employees, McKesson will continue
to
l
ea
d
t
h
e c
h
ange in
h
ea
l
t
h
care, exten
d
our
l
ong
-
standin
g
track record o
f
per
f
ormance, and advance
o
ur mission to improve the quality, e
ffi
ciency, and
safety of healthcare for all
.
Thank you
f
or your con
fi
dence and continued support
.
J
ohn H. Hammergren
C
hairman
,
President and Chief Executive Officer
In
d
ustry Lea
d
ers
h
i
p
The world noticed McKesson’s success in
fi
scal 2010. The Company earned several signi
fi
cant awards recognizing our
fi
nancial
success an
d
our exce
ll
ence in corporate socia
l
responsi
b
i
l
ity, emp
l
oyee engagement, an
d
service qua
l
ity.
s
FORTUNE Magaz
i
ne’
s
฀฀฀฀฀฀฀฀฀
s
T
h
is awar
d
measures
corporate reputation and per
f
ormance against nine key attributes: innovation, people management, use o
f
corporate
assets, social responsibility, quality o
f
management,
fi
nancial soundness, long-term investment, quality o
f
products and
services, an
d
g
l
o
b
a
l
competitiveness. McKesson ran
k
e
d
num
b
er one in a
ll
nine categories.
฀฀฀฀฀
฀฀
This distinction recognizes companies
f
or
fi
nancial
per
f
ormance that exceeds that o
f
their sector while also achieving best-in-class employee engagement scores.
s
Corporate Responsibility Magazine’s
฀฀฀
฀
s
T
h
is
l
ist is
b
ase
d
on more t
h
an 360
d
ata points
in seven categories: environment, climate change, human rights, philanthropy, employee relations,
fi
nancial per
f
ormance, and
governance. McKesson ranked 44th, up
f
rom 67th in
fi
scal 2009
.