Selected Quarterly Operating Results

The following table presents quarterly unaudited consolidated financial information for the eight quarters preceding March 31, 2016. 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)	6/30/2014		9/30/2014			12/31/2014			3/31/2015			6/30/2015			9/30/2015			12/31/2015			3/31/2016
Revenues:
Software license and hardware	$	19,761	$	19,316		$	21,428		$	21,144		$	16,189		$	19,687		$	16,150		$	18,497
Software related subscription services	9,715		9,687			11,864			13,326			12,246			12,437			11,705			19,015
Total software, hardware and related	29,476		29,003			33,292			34,470			28,435			32,124			27,855			37,512
Support and maintenance	40,805		42,135			43,045			43,234			43,713			42,176			39,519			39,792
Revenue cycle management and related services	16,693		17,432			20,392			19,720			20,243			20,793			21,594			20,376
Electronic data interchange and data services	18,319		18,906			19,051			20,082			20,189			20,581			20,643			20,930
Professional services	12,601		13,043			7,644			10,882			9,584			9,695			7,421			9,302
Total revenues	117,894		120,519			123,424			128,388			122,164			125,369			117,032			127,912
Cost of revenue:
Software license and hardware	7,556		7,475			7,295			6,477			7,041			6,578			6,530			7,357
Software related subscription services	4,451		5,384			5,194			5,643			5,958			5,963			5,533			9,168
Total software, hardware and related	12,007		12,859			12,489			12,120			12,999			12,541			12,063			16,525
Support and maintenance	6,914		6,785			7,365			7,802			7,943			8,394			7,537			7,455
Revenue cycle management and related services	12,706		13,202			14,246			14,252			14,512			14,680			14,381			14,018
Electronic data interchange and data services	11,999		12,015			11,956			12,274			12,326			12,539			12,437			12,851
Professional services	12,564		11,912			8,304			9,393			8,197			8,444			7,367			8,406
Total cost of revenue	56,190		56,773			54,360			55,841			55,977			56,598			53,785			59,255
Gross profit	61,704		63,746			69,064			72,547			66,187			68,771			63,247			68,657
Operating expenses:
Selling, general and administrative ⁽¹⁾	36,730		38,681			41,482			41,279			39,171			37,396			39,395			40,272
Research and development costs, net	16,236		16,898			18,468			17,638			17,085			17,981			14,518			16,077
Amortization of acquired intangible assets	983		908			904			898			897			898			897			2,675
Impairment of assets ⁽²⁾	—		—			—			—			—			—			—			32,238
Total operating expenses	53,949		56,487			60,854			59,815			57,153			56,275			54,810			91,262
Income (loss) from operations	7,755		7,259			8,210			12,732			9,034			12,496			8,437			(22,605		)
Interest income	54		70			(52		)	40			302			44			55			27
Interest expense	—		(1		)	(30		)	(311		)	—			(3		)	(6		)	(1,295		)
Other income (expense), net	9		(26		)	—			(45		)	(50		)	(54		)	(43		)	(19		)
Income (loss) before provision for (benefit of) income taxes	7,818		7,302			8,128			12,416			9,286			12,483			8,443			(23,892		)
Provision for (benefit of) income taxes	2,655		2,552			1,452			1,673			2,924			4,168			1,141			(7,570		)
Net income (loss)	$	5,163	$	4,750		$	6,676		$	10,743		$	6,362		$	8,315		$	7,302		$	(16,322	)
Net income (loss) per share:
Basic ⁽³⁾	$	0.09	$	0.08		$	0.11		$	0.18		$	0.11		$	0.14		$	0.12		$	(0.27	)
Diluted ⁽³⁾	$	0.08	$	0.08		$	0.11		$	0.18		$	0.10		$	0.14		$	0.12		$	(0.27	)
Weighted-average shares outstanding:
Basic	60,230		60,247			60,272			60,288			60,312			60,461			60,867			60,899
Diluted	60,770		60,788			60,855			60,956			61,064			61,194			61,279			60,899
Dividends declared per common share	$	0.175	$	0.175		$	0.175		$	0.175		$	0.175		$	0.175		$	0.175		$	—

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(1) Selling, general and administrative for the quarter ended 12/31/2015 includes the loss on the disposition of the Hospital Solutions Division (including direct incremental costs, severance, and other employee-related costs incurred in connection with the disposition). Refer to Note 5 for additional details.

(2) Impairment of assets for the quarter ended 3/31/2016 relates to the impairment of our previously capitalized software costs of the NextGen Now development project. Refer to Note 8 for additional details.

(3) Quarterly net income (loss) per share may not sum to annual net income (loss) per share due to rounding