-----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, Q96H/RXj26QRgpv1IGOCNYABz2w567FZTOk8nliHKDeC9gPaTtMfVu0hm0f7/nYu f3TKwceE23Vrw/aj2e6WXg== 0001169232-04-005449.txt : 20041103 0001169232-04-005449.hdr.sgml : 20041103 20041103104801 ACCESSION NUMBER: 0001169232-04-005449 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041103 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041103 DATE AS OF CHANGE: 20041103 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: 041115131 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 d61089_8k.txt CURRENT REPORT 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 Date of Report (Date of earliest event reported) November 3, 2004 QUALITY SYSTEMS, INC. (Exact name of registrant as specified in its charter) CALIFORNIA 0-13801 95-2888568 (State or other (Commission File Number) (IRS Employer jurisdiction of incorporation) Identification Number) 18191 Von Karman, Suite 450 Irvine, California 92612 (Address of Principal Executive Offices) (949) 255-2600 (Registrant's Telephone Number, Including Area Code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below): |_| 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)) Item 2.02 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 November 3, 2004, Quality Systems, Inc. issued a press release announcing its financial performance for the period ended September 30, 2004. On that same date, Quality Systems, Inc. conducted a conference call concerning its performance for the period ended September 30, 2004. A copy of the news release is attached to this Form 8-K as Exhibit 99.1. Item 9.01 Financial Statements and Exhibits (c) Exhibits. Exhibit 99.1 Press release dated November 3, 2004 of Quality Systems, Inc. -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: November 3, 2004 QUALITY SYSTEMS, INC. By:/s/ Paul Holt -------------------------------- Paul Holt Chief Financial Officer INDEX TO EXHIBITS Exhibit Number Description - --------- ----------------------------------------------------------------- 99.1 Press Release dated November 3, 2004. -3- EX-99.1 2 d61089_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)--November 3, 2004--Quality Systems, Inc. (NASDAQ:QSII - news) today announced the results of operations for its fiscal 2005 second quarter ended September 30, 2004. The Company posted net revenues of $21.2 million in the second quarter, an increase of 20% from $17.6 million generated during the same quarter last year. The Company reported net income of $3,715,000 an increase of 54% over net income of $2,408,000 earned in the comparable quarter of the prior year. Fully diluted earnings per share was $0.56 in the quarter, an increase of 51% over the fully diluted $0.37 per share earnings recorded in the same quarter 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. For the quarter, the Company's NextGen Healthcare Information Systems division posted record revenue of $17.3 million, up 28% over the same quarter prior year and record operating income of $6.1 million, up 58% over the same quarter of the prior year. Quality Systems, Inc. will hold a conference call to discuss second quarter financial results on Wednesday, November 3, 2004 at 1:00 p.m. EST. 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 Wednesday, November 3 at 3:30 p.m. EST, through Wednesday, November 10 at midnight EST. To access replay dial (800) 642-1687 and enter the conference ID number 1822543. Please note that beginning with the reporting of the Company's third-quarter fiscal 2005 results, future earnings releases and conference calls will occur after the market close. Quality Systems, Inc. and its NextGen Healthcare Information Systems subsidiary develop and market computer-based practice management, patient 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 Income (Unaudited)
Three Months Ended Six Months Ended September 30, September 30, 2004 2003 2004 2003 ----------- ----------- ---------- ---------- Net Revenues: Sales of computer systems, Upgrades and supplies 11,607,000 10,026,000 22,676,000 19,500,000 Maintenance and other services 9,610,000 7,616,000 18,671,000 14,448,000 ----------- ----------- ---------- ---------- 21,217,000 17,642,000 41,347,000 33,948,000 Cost of Products and Services 7,937,000 7,492,000 16,038,000 14,102,000 ----------- ----------- ---------- ---------- Gross Profit 13,280,000 10,150,000 25,309,000 19,846,000 Selling, General and Administrative Expenses 5,414,000 4,768,000 10,367,000 9,508,000 Research and Development Costs 1,818,000 1,502,000 3,430,000 2,868,000 ----------- ----------- ---------- ---------- Income from Operations 6,048,000 3,880,000 11,512,000 7,470,000 Investment Income 170,000 89,000 290,000 189,000 ----------- ----------- ---------- ---------- Income before Provision for Income Taxes 6,218,000 3,969,000 11,802,000 7,659,000 Provision for Income Taxes 2,503,000 1,561,000 4,705,000 2,974,000 ----------- ----------- ---------- ---------- Net Income $ 3,715,000 $ 2,408,000 7,097,000 4,685,000 =========== =========== ========== ========== Income per Share - Basic $ 0.58 $ 0.39 $ 1.12 $ 0.76 =========== =========== ========== ========== Income per Share - Diluted $ 0.56 $ 0.37 $ 1.08 $ 0.72 =========== =========== ========== ========== Weighted average number of shares outstanding - Basic 6,390,000 6,167,000 6,361,000 6,162,000 =========== =========== ========== ========== Weighted average number of shares outstanding - Diluted 6,598,000 6,491,000 6,580,000 6,479,000 =========== =========== ========== ==========
Quality Systems, Inc. Consolidated Balance Sheets (in thousands)
ASSETS September 30, March 31, 2004 2004 (unaudited) Current Assets: Cash and cash equivalents $ 59,522 $ 51,395 Accounts receivable, net 25,198 20,336 Inventories 1,058 725 Net current deferred tax assets 2,979 2,979 Other current assets 1,595 1,437 --------- --------- Total current assets 90,352 76,872 Equipment and improvements, net 2,302 2,012 Capitalized software costs, net 3,707 3,608 Deferred long term tax assets 1,104 1,104 Goodwill, net 1,840 1,840 Other assets 1,282 1,242 --------- --------- Total assets $ 100,587 $ 86,678 ========= ========= LIABILITIES AND SHAREHOLDER'S EQUITY Current Liabilities: Accounts payable $ 2,068 $ 1,655 Deferred revenue 20,933 17,263 Accrued employee compensation and benefits 2,594 2,985 Other current liabilities 5,882 3,770 --------- --------- Total current liabilities 31,477 25,673 Commitments and Contingencies Shareholders' Equity: Common stock, $0.01 par value, 20,000 shares authorized, 6,431 and 6,325 shares issued and outstanding, respectively 64 63 Additional paid-in capital 40,527 39,735 Retained earnings 29,847 22,750 Deferred compensation (1,328) (1,543) --------- --------- Total shareholders' equity 69,110 61,005 Total liabilities and shareholders' equity $ 100,587 $ 86,678 ========= =========
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