Selected Quarterly Operating Results

The following table presents quarterly unaudited consolidated financial information for the eight quarters preceding March 31, 2015. 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 statement of the results for these periods.



	Quarter Ended
(Unaudited)	6/30/2013			9/30/2013			12/31/2013			3/31/2014		6/30/2014		9/30/2014			12/31/2014			3/31/2015
Revenues:
Software and hardware	$	15,972		$	15,562		$	14,114		$	15,186	$	14,743	$	14,230		$	16,339		$	16,061
Implementation and training services	6,575			7,809			5,046			6,518		6,266		7,040			3,658			6,684
System sales	22,547			23,371			19,160			21,704		21,009		21,270			19,997			22,745
Maintenance	38,608			40,313			39,763			41,376		40,805		42,135			43,045			43,234
Electronic data interchange services	16,692			16,545			16,637			17,421		18,319		18,906			19,051			20,082
Revenue cycle management and related services	16,015			15,467			16,178			15,316		16,693		17,432			20,392			19,720
Other services	15,667			15,385			17,116			19,386		21,068		20,776			20,939			22,607
Maintenance, EDI, RCM and other services	86,982			87,710			89,694			93,499		96,885		99,249			103,427			105,643
Total revenues	109,529			111,081			108,854			115,203		117,894		120,519			123,424			128,388
Cost of revenue:
Software and hardware	4,934			4,779			27,398			7,115		6,641		6,521			6,127			5,404
Implementation and training services	7,134			6,972			7,466			8,109		7,151		6,688			4,584			5,479
Total cost of system sales	12,068			11,751			34,864			15,224		13,792		13,209			10,711			10,883
Maintenance	5,302			5,262			5,642			6,384		6,914		6,785			7,365			7,802
Electronic data interchange services	10,796			10,650			10,276			10,845		11,999		12,015			11,956			12,274
Revenue cycle management and related services	11,401			11,007			11,736			12,059		12,706		13,202			14,246			14,252
Other services	8,505			9,012			8,537			8,842		10,779		11,562			10,082			10,630
Total cost of maintenance, EDI, RCM and other services	36,004			35,931			36,191			38,130		42,398		43,564			43,649			44,958
Total cost of revenue	48,072			47,682			71,055			53,354		56,190		56,773			54,360			55,841
Gross profit	61,457			63,399			37,799			61,849		61,704		63,746			69,064			72,547
Operating expenses:
Selling, general and administrative	35,096			38,578			36,864			38,676		36,730		38,681			41,482			41,279
Research and development costs	5,614			7,615			13,175			15,120		16,236		16,898			18,468			17,638
Amortization of acquired intangible assets	1,194			1,260			1,219			1,132		983		908			904			898
Impairment of goodwill and other assets	—			—			5,873			—		—		—			—			—
Total operating expenses	41,904			47,453			57,131			54,928		53,949		56,487			60,854			59,815
Income (loss) from operations	19,553			15,946			(19,332		)	6,921		7,755		7,259			8,210			12,732
Interest income (expense), net	31			(205		)	121			322		54		69			(82		)	(271		)
Other income (expense), net	(254		)	(155		)	18			35		9		(26		)	—			(45		)
Income (loss) before provision for income taxes	19,330			15,586			(19,193		)	7,278		7,818		7,302			8,128			12,416
Provision for (benefit of) income taxes	6,385			5,465			(6,606		)	2,077		2,655		2,552			1,452			1,673
Net income (loss)	$	12,945		$	10,121		$	(12,587	)	$	5,201	$	5,163	$	4,750		$	6,676		$	10,743
Net income (loss) per share:
Basic*	$	0.22		$	0.17		$	(0.21	)	$	0.09	$	0.09	$	0.08		$	0.11		$	0.18
Diluted*	$	0.22		$	0.17		$	(0.21	)	$	0.09	$	0.08	$	0.08		$	0.11		$	0.18
Weighted-average shares outstanding:
Basic	59,559			59,734			60,173			60,208		60,230		60,247			60,272			60,288
Diluted	59,572			59,751			60,173			60,592		60,770		60,788			60,855			60,956
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