-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UfOL1lteX7VLy6I9F9LFwG398bO4fKYpTIwk2l3jokXh9XOWMt0iNcRewcBsqEkd +i+oIycf+Pc9svS3aY07pg== 0001169232-04-003125.txt : 20040527 0001169232-04-003125.hdr.sgml : 20040527 20040527111748 ACCESSION NUMBER: 0001169232-04-003125 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040527 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040527 FILER: COMPANY DATA: COMPANY CONFORMED NAME: QUALITY SYSTEMS INC CENTRAL INDEX KEY: 0000708818 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 952888568 STATE OF INCORPORATION: CA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12537 FILM NUMBER: 04834012 BUSINESS ADDRESS: STREET 1: 18191 VON KARMAN AVENUE CITY: IRVINE STATE: CA ZIP: 92612 BUSINESS PHONE: 7147317171 MAIL ADDRESS: STREET 1: 18191 VON KARMAN AVENUE STREET 2: SUITE 450 CITY: IRVINE STATE: CA ZIP: 92612 8-K 1 d59807_8-k.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 May 27, 2004 Date of Report (Date of earliest event reported) QUALITY SYSTEMS, INC. (Exact name of registrant as specified in its charter) CALIFORNIA (State or other jurisdiction of incorporation) 0-13801 95-2888568 (Commission File No.) (IRS Employer Identification Number) 18191 Von Karman Avenue, Suite 450 Irvine, California 92612 (Address of Principal Executive Offices) (949) 255-2600 (Registrant's Telephone Number, Including Area Code) Item 7. Financial Statements and Exhibits (c) Exhibits. 99.1 Press Release dated May 27, 2004. Item 12. Results of Operations and Financial Condition The information in this Form 8-K and the Exhibits attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. On May 27, 2004, Quality Systems, Inc. issued a press release announcing its financial performance for the period ended March 31, 2004. On that same date, Quality Systems, Inc. conducted a conference call concerning its performance for the same period. A copy of the press release is attached to this Form 8-K as Exhibit 99.1 and incorporated by reference herein. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: May 27, 2004 QUALITY SYSTEMS, INC. By: /s/ Paul Holt ------------------------------------ Paul Holt Chief Financial Officer 3 INDEX TO EXHIBITS Exhibit Number Description - ------- ------------------------------------------------------------------ 99.1 Press Release dated May 27, 2004. 4 EX-99.1 2 d59807_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 Fourth-Quarter and Fiscal Year-End Results IRVINE, Calif. - May 27, 2004 - Quality Systems Inc. (Nasdaq: QSII) today announced the results of operations for its fiscal 2004 fourth quarter and year ended March 31, 2004. The Company posted net revenue of $18.8 million for the fourth quarter, an increase of 25% over the $15.1 million generated during the comparable quarter of the prior year. The Company reported net income of $3,104,000, an increase of 76% over net income of $1,763,000 earned during the prior year's fourth quarter. Fully diluted earnings per share totaled $0.47 in the current quarter, an increase of 74% over the fully diluted $0.27 per share recorded in the same quarter last year. Revenue for fiscal year ended March 31, 2004 was $70,934,000, an increase of 30% over fiscal 2003 revenue of $54,769,000. Net income for fiscal 2004 was $10,400,000, an increase of 48% over fiscal 2003's net income of $7,035,000. Fully diluted earnings per share increased to $1.60 in FY 2004 from $1.10 earned during FY 2003, an increase of 45%. Quality Systems, Inc. will hold a conference call to discuss fourth-quarter and year-end financial results today, Thursday, May 27 at 1:00 p.m. EDT (10:00 a.m. PDT). To participate in the call, please dial 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, May 27 at 1:00 p.m. PDT, through Thursday, June 3 at midnight EDT. To access the replay dial (800) 642-1687 and enter the conference ID number 7753338. 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 medical and dental group practices. Visit www.qsii.com and www.nextgen.com for additional information. This news release may contain forward-looking statements within the meaning of the federal securities laws. Statements regarding future events, developments, the Company's future performance, as well as management's expectations, beliefs, intentions, plans, estimates or projections relating to the future (including, without limitation, statements concerning revenue and net income), are forward-looking statements within the meaning of these laws and involve a number of risks and uncertainties. Moreover, these forward-looking statements are subject to a number of risks and uncertainties, some of which are outlined below. As a result, actual results may vary materially from those anticipated by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: the volume and timing of systems sales and installations; length of sales cycles and the installation process; the possibility that products will not achieve or sustain market acceptance; seasonal patterns of sales and customer buying behavior; the timing, cost and success or failure of new product and service introductions, development and product upgrade releases; undetected errors or bugs in software; changing economic, political or regulatory influences in the health-care industry; changes in product-pricing policies; availability of third-party products and components; competitive pressures including product offerings, pricing and promotional activities; the Company's ability or inability to attract and retain qualified personnel; possible regulation of the Company's software by the U.S. Food and Drug Administration; uncertainties concerning threatened, pending and new litigation against the Company including related professional services fees; uncertainties concerning the amount and timing of professional fees incurred by the Company generally; changes of accounting estimates and assumptions used to prepare the prior periods' financial statements; 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. A significant portion of the Company's quarterly sales of software product licenses and computer hardware is concluded in the last month of the fiscal quarter, generally with a concentration of such revenues earned in the final ten business days of that month. Due to these and other factors, the Company's revenues and operating results are very difficult to forecast. A major portion of the Company's costs and expenses, such as personnel and facilities, are of a fixed nature and, accordingly, a shortfall or decline in quarterly and/or annual revenues typically results in lower profitability or losses. As a result, comparison of the Company's period-to-period financial performance is not necessarily meaningful and should not be relied upon as an indicator of future performance. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. [financial highlights follow] Quality Systems, Inc. Consolidated Statements of Operations and Comprehensive Income
Three Months Ended Year Ended March 31, March 31, 2004 2003 2004 2003 Net Revenues: Sales of computer systems, upgrades and supplies $10,166,000 $ 8,264,000 $39,525,000 $29,169,000 Maintenance and other services 8,621,000 6,804,000 31,409,000 25,600,000 ----------- ----------- ----------- ----------- 18,787,000 15,068,000 70,934,000 54,769,000 Cost of Products and Services 7,048,000 6,822,000 28,673,000 23,755,000 ----------- ----------- ----------- ----------- Gross Profit 11,739,000 8,246,000 42,261,000 31,014,000 Selling, General and Administrative Expenses 5,072,000 4,260,000 19,482,000 15,293,000 Research and Development Costs 1,643,000 1,367,000 6,139,000 5,062,000 ----------- ----------- ----------- ----------- Income from Operations 5,024,000 2,619,000 16,640,000 10,659,000 Investment Income 102,000 98,000 386,000 434,000 ----------- ----------- ----------- ----------- Income before Provision for Income Taxes 5,126,000 2,717,000 17,026,000 11,093,000 Provision for Income Taxes 2,022,000 954,000 6,626,000 4,058,000 ----------- ----------- ----------- ----------- Net Income $ 3,104,000 $ 1,763,000 $10,400,000 $ 7,035,000 =========== =========== =========== =========== Income per Share - Basic $ 0.49 $ 0.29 $ 1.67 $ 1.15 Income per Share - Diluted $ 0.47 $ 0.27 $ 1.60 $ 1.10 Weighted average number of shares outstanding - Basic 6,312,000 6,144,000 6,218,000 6,127,000 Weighted average number of shares outstanding - Diluted 6,582,000 6,431,000 6,483,000 6,389,000
Quality Systems, Inc. Consolidated Balance Sheets (in thousands) ASSETS March 31, March 31, 2004 2003 Current Assets: Cash and cash equivalents $ 51,395 $36,443 Accounts receivable, net 20,336 17,561 Inventories 725 667 Net current deferred tax assets 2,552 2,029 Other current assets 1,437 2,086 -------- ------- Total current assets 76,445 58,786 Equipment and improvements, net 2,012 1,777 Capitalized software costs, net 3,608 2,511 Deferred long term tax assets 1,497 1,819 Goodwill, net 1,840 1,840 Other assets 1,242 869 -------- ------- Total assets $ 86,644 $67,602 ======== ======= LIABILITIES AND SHAREHOLDER'S EQUITY Current Liabilities: Accounts payable $ 1,655 $ 2,477 Deferred service revenue 17,263 11,699 Accrued employee compensation and benefits 2,985 2,259 Other current liabilities 3,736 3,634 -------- ------- Total current liabilities 25,639 20,069 Commitments and Contingencies Shareholders' Equity: Common stock, $0.01 par value, 20,000 shares authorized, 6,325 and 6,152 shares issued and outstanding, respectively 63 62 Additional paid-in capital 39,735 35,121 Retained earnings 22,750 12,350 Deferred compensation (1,543) -- -------- ------- Total shareholders' equity 61,005 47,533 Total liabilities and shareholders' equity $ 86,644 $67,602 ======== ======= ### -----END PRIVACY-ENHANCED MESSAGE-----