EX-99.1 3 d57253_ex99-1.txt PRESS RELEASE Exhibit 99.1 For Further Information: Quality Systems, Inc. CCG Investor Relations 18191 Von Karman Ave, #450 15300 Ventura Blvd., Suite 303 Irvine, CA 92612 Sherman Oaks, CA 91403 www.qsii.com www.coffincg.com (949) 255-2600 (818) 789-0100 CONTACT: Lou Silverman CONTACT: William F. Coffin, President President and CEO Sean Collins, Partner QUALITY SYSTEMS REPORTS SECOND QUARTER RESULTS IRVINE, Calif.--(BUSINESS WIRE)--October 30, 2003--Quality Systems, Inc. (NASDAQ:QSII - news) today announced the results of operations for its fiscal 2004 second quarter ended September 30, 2003. The Company posted net revenues of $17.6 million in the second quarter, an increase of 35% from $13.0 million for the same quarter last year. The Company reported net income of $2,408,000 an increase of 41% over net income of $1,710,000 for the comparable quarter of the prior year. Fully diluted earnings per share totaled $0.37 in the quarter, an increase of 37% over the fully diluted $0.27 per share earnings recorded in the same quarter of last year. The revenue and net income results achieved in the quarter were records for the company. Results in the second quarter were driven by record revenue and profit in the company's NextGen Healthcare Information Systems division, which posted record revenue of $13.5 million, up 57% over the same quarter prior year, and record operating income of $3.8 million, up 81% over the same quarter prior year. Quality Systems, Inc. will hold a conference call to discuss second quarter financial results today, Thursday, October 30, 2003 at 1:00 p.m. EST (10:00 a.m. PST). To participate in the call, please call (877) 586-7724 five to ten minutes prior to the scheduled conference call time. There is no pass code required for this call. If you are unable to participate in the call at this time, a replay will be available on Thursday, October 30 at 1:00 p.m. PST, through Thursday, November 6 at midnight EST. To access the replay dial (800) 642-1687 and enter the conference ID number 3512337. A transcript of the conference call will be made available on the QSII web site (www.qsii.com). Quality Systems, Inc. and its NextGen Healthcare Information Systems subsidiary develop and market computer-based practice management, medical records, and connectivity applications for large medical and dental group practices. Visit www.qsii.com and www.nextgen.com for additional information. This news release may contain forward-looking statements, including those related to revenue and net income, that involve a number of risks and uncertainties. Among the important factors that could impact actual are volume and timing of systems sales and installations, length of sales cycles and installation process; the (more) Quality Systems - Second Quarter 2004 For Release October 30, 2003 Page 2 possibility that the products will not achieve market acceptance; seasonal patterns of sales and customer buying behavior, the development by competitors of new or superior technologies, delays in product development, undetected errors or bugs in software, product liability, changing economic, political or regulatory influences on the healthcare industry, changes in product pricing policies, competitive pressures, possible regulation of the company's software by the U.S. Food and Drug Administration, general economic conditions, and the risk factors detailed from time to time in Quality Systems' periodic reports and registration statements filed with the Securities and Exchange Commission. [financial highlights follow] Quality Systems - Second Quarter 2004 For Release October 30, 2003 Page 3 Quality Systems, Inc. Consolidated Statements of Income (unaudited)
Three Months Ended Six Months Ended September 30, September 30, 2003 2002 2003 2002 ----------- ----------- ---------- ---------- Net Revenues: Sales of computer systems, Upgrades and supplies 10,026,000 6,814,000 19,500,000 13,239,000 Maintenance and other services 7,616,000 6,180,000 14,448,000 12,062,000 ----------- ----------- ---------- ---------- 17,642,000 12,994,000 33,948,000 25,301,000 Cost of Products and Services 7,492,000 5,660,000 14,102,000 10,580,000 ----------- ----------- ---------- ---------- Gross Profit 10,150,000 7,334,000 19,846,000 14,721,000 Selling, General and Administrative Expenses 4,768,000 3,442,000 9,508,000 7,115,000 Research and Development Costs 1,502,000 1,213,000 2,868,000 2,348,000 ----------- ----------- ---------- ---------- Income from Operations 3,880,000 2,679,000 7,470,000 5,258,000 Investment Income 89,000 123,000 189,000 227,000 ----------- ----------- ---------- ---------- Income before Provision for Income Taxes 3,969,000 2,802,000 7,659,000 5,485,000 Provision for Income Taxes 1,561,000 1,092,000 2,974,000 2,148,000 ----------- ----------- ---------- ---------- Net Income $ 2,408,000 $ 1,710,000 4,685,000 3,337,000 =========== =========== ========== ========== Income per Share - Basic $ 0.39 $ 0.28 .76 .55 =========== =========== ========== ========== Income per Share - Diluted $ 0.37 $ 0.27 .72 .53 =========== =========== ========== ========== Weighted average number of shares outstanding - Basic 6,167,000 6,122,000 6,162,000 6,114,000 =========== =========== ========== ========== Weighted average number of shares outstanding - Diluted 6,491,000 6,351,000 6,479,000 6,347,000 =========== =========== ========== ==========
Quality Systems - Second Quarter 2004 For Release October 30, 2003 Page 4 Quality Systems, Inc. Consolidated Balance Sheets (in thousands)
ASSETS September 30, March 31, 2003 (unaudited) 2003 ---------------- --------- Current Assets: Cash and cash equivalents $40,573 $36,443 Accounts receivable, net 21,240 17,561 Inventories 984 667 Deferred tax assets 2,029 2,029 Other current assets 1,867 2,086 ------- ------- Total current assets 66,693 58,786 Equipment and Improvements, net 1,797 1,777 Capitalized Software Costs, net 3,020 2,511 Deferred Tax Asset 1,819 1,819 Excess of Cost Over Net Assets of Acquired Business, net 1,840 1,840 Other Assets 972 869 ------- ------- Total assets $76,141 $67,602 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 1,742 $ 2,477 Deferred revenue 15,093 11,699 Other current liabilities 6,900 5,893 ------- ------- Total liabilities 23,735 20,069 Commitments and Contingencies Shareholders' Equity: Common stock, $0.01 par value, 20,000 shares authorized, 6,174 and 6,152 shares issued and outstanding, respectively 62 62 Additional paid-in capital 35,309 35,121 Retained Earnings 17,035 12,350 ------- ------- Total shareholders' equity 52,406 47,533 Total liabilities and Shareholders' equity $76,141 $67,602 ======= =======
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