Selected Quarterly Operating Results

The following table presents quarterly unaudited consolidated financial information for the eight quarters preceding March 31, 2013. Such information is presented on the same basis as the annual information presented in the accompanying consolidated financial statements. In management’s opinion, this information reflects all adjustments that are necessary for a fair presentation of the results for these periods.



	Quarter Ended
(Unaudited)	6/30/2011			9/30/2011			12/31/2011			3/31/2012		6/30/2012			9/30/2012			12/31/2012			3/31/2013
Revenues:
Software and hardware	$	28,911		$	31,860		$	35,074		$	26,562	$	25,844		$	23,720		$	21,899		$	17,109
Implementation and training services	5,472			6,094			6,555			8,270		12,046			8,535			7,266			7,161
System sales	34,383			37,954			41,629			34,832		37,890			32,255			29,165			24,270
Maintenance	31,502			35,214			36,245			35,871		38,568			38,715			39,463			40,025
Electronic data interchange services	12,092			11,985			12,101			13,081		13,823			15,024			15,209			15,653
Revenue cycle management and related services	11,881			11,142			11,147			11,402		14,401			14,486			15,015			15,317
Other services	10,584			11,339			11,643			13,808		13,614			15,648			15,658			16,030
Maintenance, EDI, RCM and other services	66,059			69,680			71,136			74,162		80,406			83,873			85,345			87,025
Total revenues	100,442			107,634			112,765			108,994		118,296			116,128			114,510			111,295
Cost of revenue:
Software and hardware	4,614			4,187			4,622			4,976		5,771			5,624			4,660			5,695
Implementation and training services	4,075			5,050			5,994			6,179		9,145			7,507			7,221			7,023
Total cost of system sales	8,689			9,237			10,616			11,155		14,916			13,131			11,881			12,718
Maintenance	3,854			3,994			4,412			4,844		4,811			4,741			5,259			5,505
Electronic data interchange services	7,962			7,964			7,890			8,606		9,248			9,151			9,852			10,099
Revenue cycle management and related services	8,826			8,456			8,405			8,608		10,870			10,556			10,918			10,980
Other services	5,597			6,369			7,011			8,728		8,550			8,785			8,686			8,995
Total cost of maintenance, EDI, RCM and other services	26,239			26,783			27,718			30,786		33,479			33,233			34,715			35,579
Total cost of revenue	34,928			36,020			38,334			41,941		48,395			46,364			46,596			48,297
Gross profit	65,514			71,614			74,431			67,053		69,901			69,764			67,914			62,998
Operating expenses:
Selling, general and administrative	29,386			32,169			33,096			34,195		36,681			37,832			35,532			38,308
Research and development costs	6,827			7,358			8,277			8,907		8,576			6,272			7,786			8,231
Amortization of acquired intangible assets	482			520			543			653		1,137			1,316			1,212			1,194
Impairment of goodwill	—			—			—			—		—			—			—			17,400
Total operating expenses	36,695			40,047			41,916			43,755		46,394			45,420			44,530			65,133
Income (loss) from operations	28,819			31,567			32,515			23,298		23,507			24,344			23,384			(2,135		)
Interest income (expense), net	82			75			55			35		35			(62		)	13			(93		)
Other income (expense), net	(38		)	(144		)	(218		)	261		(213		)	220			(122		)	36
Income (loss) before provision for income taxes	28,863			31,498			32,352			23,594		23,329			24,502			23,275			(2,192		)
Provision for income taxes	9,880			11,002			11,247			8,521		7,832			8,811			7,649			1,898
Net income (loss)	$	18,983		$	20,496		$	21,105		$	15,073	$	15,497		$	15,691		$	15,626		$	(4,090	)
Net income (loss) per share:
Basic*	$	0.33		$	0.35		$	0.36		$	0.26	$	0.26		$	0.26		$	0.26		$	(0.07	)
Diluted*	$	0.32		$	0.35		$	0.36		$	0.25	$	0.26		$	0.26		$	0.26		$	(0.07	)
Weighted-average shares outstanding:
Basic	58,362			58,511			58,847			59,048		59,281			59,347			59,400			59,541
Diluted	58,800			58,902			59,128			59,232		59,388			59,386			59,405			59,541
Dividends declared per common share	$	0.175		$	0.175		$	0.175		$	0.175	$	0.175		$	0.175		$	0.175		$	0.175

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*	Quarterly EPS may not sum to annual EPS due to rounding