CALIFORNIA (State or other jurisdiction of incorporation) | 001-12537 (Commission File Number) | 95-2888568 (IRS Employer Identification Number) |
⃞ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
⃞ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
⃞ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
⃞ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
• | Revenue from software-as-a-service (SaaS), hosting services, and other software related subscriptions are now aggregated into a new software related subscription services category of revenue. Previously, revenue from software related subscriptions services was reported within the other services category of revenue. |
• | Revenue from annual software licenses that was also previously reported within the other services category of revenue is now reported within the software license and hardware category of revenue. |
• | Revenue from all other services, including implementation, training, and consulting, are now aggregated into a single professional services category of revenue that excludes software related subscription services and annual software licenses, as noted above. |
Exhibit No. | Description | |
99.1 | Recast consolidated statements of comprehensive income for the fiscal years ended March 31, 2014 and 2015 and each of the respective quarterly reporting periods therein |
QUALITY SYSTEMS, INC. | |||
By: | /s/ John Stumpf | ||
John Stumpf | |||
Interim Chief Financial Officer |
Exhibit No. | Description | ||
99.1 | Recast consolidated statements of comprehensive income for the fiscal years ended March 31, 2014 and 2015 and each of the respective quarterly reporting periods therein |
Three Months Ended March 31, | Fiscal Year Ended March 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues: | |||||||||||||||
Software license and hardware | $ | 21,144 | $ | 19,787 | $ | 81,649 | $ | 79,366 | |||||||
Software related subscription services | 13,326 | 8,912 | 44,592 | 27,335 | |||||||||||
Total software, hardware and related | 34,470 | 28,699 | 126,241 | 106,701 | |||||||||||
Support and maintenance | 43,234 | 41,376 | 169,219 | 160,060 | |||||||||||
Revenue cycle management and related services | 19,720 | 15,316 | 74,237 | 62,976 | |||||||||||
Electronic data interchange and data services | 20,082 | 17,421 | 76,358 | 67,295 | |||||||||||
Professional Services | 10,882 | 12,391 | 44,170 | 47,635 | |||||||||||
Total revenues | 128,388 | 115,203 | 490,225 | 444,667 | |||||||||||
Cost of revenue: | |||||||||||||||
Software license and hardware | 6,477 | 7,871 | 28,803 | 49,272 | |||||||||||
Software related subscription services | 5,643 | 3,355 | 20,672 | 12,374 | |||||||||||
Total software, hardware and related | 12,120 | 11,226 | 49,475 | 61,646 | |||||||||||
Support and maintenance | 7,802 | 6,384 | 28,866 | 22,590 | |||||||||||
Revenue cycle management and related services | 14,252 | 12,059 | 54,406 | 46,203 | |||||||||||
Electronic data interchange and data services | 12,274 | 10,845 | 48,244 | 42,567 | |||||||||||
Professional Services | 9,393 | 12,840 | 42,173 | 47,157 | |||||||||||
Total cost of revenue | 55,841 | 53,354 | 223,164 | 220,163 | |||||||||||
Gross profit | 72,547 | 61,849 | 267,061 | 224,504 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | 41,279 | 38,676 | 158,172 | 149,214 | |||||||||||
Research and development costs | 17,638 | 15,120 | 69,240 | 41,524 | |||||||||||
Amortization of acquired intangible assets | 898 | 1,132 | 3,693 | 4,805 | |||||||||||
Impairment of goodwill and other assets | — | — | — | 5,873 | |||||||||||
Total operating expenses | 59,815 | 54,928 | 231,105 | 201,416 | |||||||||||
Income from operations | 12,732 | 6,921 | 35,956 | 23,088 | |||||||||||
Interest income (expense), net | (271 | ) | 322 | (230 | ) | 269 | |||||||||
Other income (expense), net | (45 | ) | 35 | (62 | ) | (356 | ) | ||||||||
Income before provision for income taxes | 12,416 | 7,278 | 35,664 | 23,001 | |||||||||||
Provision for income taxes | 1,673 | 2,077 | 8,332 | 7,321 | |||||||||||
Net income | $ | 10,743 | $ | 5,201 | $ | 27,332 | $ | 15,680 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.18 | $ | 0.09 | $ | 0.45 | $ | 0.26 | |||||||
Diluted | $ | 0.18 | $ | 0.09 | $ | 0.45 | $ | 0.26 | |||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 60,288 | 60,208 | 60,259 | 59,918 | |||||||||||
Diluted | 60,956 | 60,592 | 60,849 | 60,134 | |||||||||||
Dividends declared per common share | $ | 0.175 | $ | 0.175 | $ | 0.70 | $ | 0.70 |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenues: | |||||||||||||||
Software license and hardware | $ | 21,428 | $ | 18,213 | $ | 60,505 | $ | 59,579 | |||||||
Software related subscription services | 11,864 | 7,636 | 31,266 | 18,423 | |||||||||||
Total software, hardware and related | 33,292 | 25,849 | 91,771 | 78,002 | |||||||||||
Support and maintenance | 43,045 | 39,763 | 125,985 | 118,684 | |||||||||||
Revenue cycle management and related services | 20,392 | 16,178 | 54,517 | 47,660 | |||||||||||
Electronic data interchange and data services | 19,051 | 16,637 | 56,276 | 49,874 | |||||||||||
Professional Services | 7,644 | 10,427 | 33,288 | 35,244 | |||||||||||
Total revenues | 123,424 | 108,854 | 361,837 | 329,464 | |||||||||||
Cost of revenue: | |||||||||||||||
Software license and hardware | 7,295 | 28,094 | 22,326 | 41,401 | |||||||||||
Software related subscription services | 5,194 | 3,116 | 15,029 | 9,019 | |||||||||||
Total software, hardware and related | 12,489 | 31,210 | 37,355 | 50,420 | |||||||||||
Support and maintenance | 7,365 | 5,642 | 21,064 | 16,206 | |||||||||||
Revenue cycle management and related services | 14,246 | 11,736 | 40,154 | 34,144 | |||||||||||
Electronic data interchange and data services | 11,956 | 10,276 | 35,970 | 31,722 | |||||||||||
Professional Services | 8,304 | 12,191 | 32,780 | 34,317 | |||||||||||
Total cost of revenue | 54,360 | 71,055 | 167,323 | 166,809 | |||||||||||
Gross profit | 69,064 | 37,799 | 194,514 | 162,655 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | 41,482 | 36,864 | 116,893 | 110,538 | |||||||||||
Research and development costs | 18,468 | 13,175 | 51,602 | 26,404 | |||||||||||
Amortization of acquired intangible assets | 904 | 1,219 | 2,795 | 3,673 | |||||||||||
Impairment of goodwill and other assets | — | 5,873 | — | 5,873 | |||||||||||
Total operating expenses | 60,854 | 57,131 | 171,290 | 146,488 | |||||||||||
Income (loss) from operations | 8,210 | (19,332 | ) | 23,224 | 16,167 | ||||||||||
Interest income (expense), net | (82 | ) | 121 | 41 | (53 | ) | |||||||||
Other income (expense), net | — | 18 | (17 | ) | (391 | ) | |||||||||
Income (loss) before provision for (benefit of) income taxes | 8,128 | (19,193 | ) | 23,248 | 15,723 | ||||||||||
Provision for (benefit of) income taxes | 1,452 | (6,606 | ) | 6,659 | 5,244 | ||||||||||
Net income (loss) | $ | 6,676 | $ | (12,587 | ) | $ | 16,589 | $ | 10,479 | ||||||
Net income (loss) per share: | |||||||||||||||
Basic | $ | 0.11 | $ | (0.21 | ) | $ | 0.28 | $ | 0.18 | ||||||
Diluted | $ | 0.11 | $ | (0.21 | ) | $ | 0.27 | $ | 0.17 | ||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 60,272 | 60,173 | 60,250 | 59,823 | |||||||||||
Diluted | 60,855 | 60,173 | 60,813 | 59,984 | |||||||||||
Dividends declared per common share | $ | 0.175 | $ | 0.175 | $ | 0.525 | $ | 0.525 |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenues: | |||||||||||||||
Software license and hardware | $ | 19,316 | $ | 20,614 | $ | 39,077 | $ | 41,366 | |||||||
Software related subscription services | 9,687 | 5,530 | 19,402 | 10,787 | |||||||||||
Total software, hardware and related | 29,003 | 26,144 | 58,479 | 52,153 | |||||||||||
Support and maintenance | 42,135 | 40,313 | 82,940 | 78,921 | |||||||||||
Revenue cycle management and related services | 17,432 | 15,467 | 34,125 | 31,482 | |||||||||||
Electronic data interchange and data services | 18,906 | 16,545 | 37,225 | 33,237 | |||||||||||
Professional Services | 13,043 | 12,612 | 25,644 | 24,817 | |||||||||||
Total revenues | 120,519 | 111,081 | 238,413 | 220,610 | |||||||||||
Cost of revenue: | |||||||||||||||
Software license and hardware | 7,475 | 6,636 | 15,031 | 13,307 | |||||||||||
Software related subscription services | 5,384 | 2,915 | 9,835 | 5,903 | |||||||||||
Total software, hardware and related | 12,859 | 9,551 | 24,866 | 19,210 | |||||||||||
Support and maintenance | 6,785 | 5,262 | 13,699 | 10,564 | |||||||||||
Revenue cycle management and related services | 13,202 | 11,007 | 25,908 | 22,408 | |||||||||||
Electronic data interchange and data services | 12,015 | 10,650 | 24,014 | 21,446 | |||||||||||
Professional Services | 11,912 | 11,212 | 24,476 | 22,126 | |||||||||||
Total cost of revenue | 56,773 | 47,682 | 112,963 | 95,754 | |||||||||||
Gross profit | 63,746 | 63,399 | 125,450 | 124,856 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | 38,681 | 38,578 | 75,411 | 73,674 | |||||||||||
Research and development costs | 16,898 | 7,615 | 33,134 | 13,229 | |||||||||||
Amortization of acquired intangible assets | 908 | 1,260 | 1,891 | 2,454 | |||||||||||
Total operating expenses | 56,487 | 47,453 | 110,436 | 89,357 | |||||||||||
Income from operations | 7,259 | 15,946 | 15,014 | 35,499 | |||||||||||
Interest income (expense), net | 69 | (205 | ) | 123 | (174 | ) | |||||||||
Other expense, net | (26 | ) | (155 | ) | (17 | ) | (409 | ) | |||||||
Income before provision for income taxes | 7,302 | 15,586 | 15,120 | 34,916 | |||||||||||
Provision for income taxes | 2,552 | 5,465 | 5,207 | 11,850 | |||||||||||
Net income | $ | 4,750 | $ | 10,121 | $ | 9,913 | $ | 23,066 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.08 | $ | 0.17 | $ | 0.16 | $ | 0.39 | |||||||
Diluted | $ | 0.08 | $ | 0.17 | $ | 0.16 | $ | 0.39 | |||||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 60,247 | 59,734 | 60,238 | 59,647 | |||||||||||
Diluted | 60,788 | 59,751 | 60,782 | 59,663 | |||||||||||
Dividends declared per common share | $ | 0.175 | $ | 0.175 | $ | 0.35 | $ | 0.35 |
Three Months Ended June 30, | |||||||
2014 | 2013 | ||||||
Revenues: | |||||||
Software license and hardware | $ | 19,761 | $ | 20,752 | |||
Software related subscription services | 9,715 | 5,257 | |||||
Total software, hardware and related | 29,476 | 26,009 | |||||
Support and maintenance | 40,805 | 38,608 | |||||
Revenue cycle management and related services | 16,693 | 16,015 | |||||
Electronic data interchange and data services | 18,319 | 16,692 | |||||
Professional Services | 12,601 | 12,205 | |||||
Total revenues | 117,894 | 109,529 | |||||
Cost of revenue: | |||||||
Software license and hardware | 7,556 | 6,671 | |||||
Software related subscription services | 4,451 | 2,988 | |||||
Total software, hardware and related | 12,007 | 9,659 | |||||
Support and maintenance | 6,914 | 5,302 | |||||
Revenue cycle management and related services | 12,706 | 11,401 | |||||
Electronic data interchange and data services | 11,999 | 10,796 | |||||
Professional Services | 12,564 | 10,914 | |||||
Total cost of revenue | 56,190 | 48,072 | |||||
Gross profit | 61,704 | 61,457 | |||||
Operating expenses: | |||||||
Selling, general and administrative | 36,730 | 35,096 | |||||
Research and development costs | 16,236 | 5,614 | |||||
Amortization of acquired intangible assets | 983 | 1,194 | |||||
Total operating expenses | 53,949 | 41,904 | |||||
Income from operations | 7,755 | 19,553 | |||||
Interest income, net | 54 | 31 | |||||
Other income (expense), net | 9 | (254 | ) | ||||
Income before provision for income taxes | 7,818 | 19,330 | |||||
Provision for income taxes | 2,655 | 6,385 | |||||
Net income | $ | 5,163 | $ | 12,945 | |||
Net income per share: | |||||||
Basic | $ | 0.09 | $ | 0.22 | |||
Diluted | $ | 0.08 | $ | 0.22 | |||
Weighted-average shares outstanding: | |||||||
Basic | 60,230 | 59,559 | |||||
Diluted | 60,770 | 59,572 | |||||
Dividends declared per common share | $ | 0.175 | $ | 0.175 |