EX-99.1 2 d72449_ex99-1.htm PRESS RELEASE

 

Exhibit 99.1

 





FOR IMMEDIATE RELEASE


For more information contact:

Louis Silverman
President and CEO
Quality Systems, Inc.
(949) 255-2600
www.qsii.com

 

Sean Collins
Partner
CCG Investor Relations
(310) 231-8600
www.ccgir.com

 

QUALITY SYSTEMS REPORTS FIRST QUARTER RESULTS

IRVINE, Calif.--(BUSINESS WIRE)— August 6, 2007--Quality Systems, Inc. (NASDAQ:QSII - news) today announced the results of operations for its fiscal 2008 first quarter ended June 30, 2007. The Company posted net revenues of $42.0 million in the first quarter, an increase of 17% from the $36.1 million generated during the same quarter last year. The Company reported net income of $7.9 million an increase of 4% over net income of $7.7 million earned in the comparable quarter of the prior year. Fully diluted earnings per share was $0.29 in the quarter, an increase of 4% over the fully diluted $0.28 per share earnings recorded in the same quarter last year.

For the quarter, the Company’s NextGen Healthcare Information Systems division posted revenue of $38.0 million, up 18% over the same quarter prior year and operating income of $13.9 million, up 4% over the same quarter of the prior year.

Quality Systems, Inc. will hold a conference call to discuss first quarter financial results August 6, 2007 at 4:30 p.m. EST (1:30 p.m. PST).   To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: (877) 586-7724. 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 Monday, August 6, 2007 at 6:30 p.m. EST, through Monday, August 13, 2007 at midnight EST. To access the replay dial (800) 642-1687and enter conference ID number 12300014.

A transcript of the conference call will be made available on the QSII Web site (www.qsii.com).

About Quality Systems, Inc.

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 Companys future performance, as well as managements 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 Companys ability or inability to attract and retain qualified personnel; possible regulation of the Companys 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 Companys 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 Companys revenues and operating results are very difficult to forecast. A major portion of the Companys 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 Companys 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

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

 

 

 

Three Months Ended

 

 

 

June 30, 2007

 

June 30, 2006

 

Revenues:

 

 

 

 

 

 

 

Software, hardware and supplies

   

$

16,739

    

$

15,029

 

Implementation and training services

 

 

3,248

 

 

2,954

 

System sales

 

 

19,987

 

 

17,983

 

 

 

 

 

 

 

 

 

     Maintenance

 

 

12,559

 

 

9,399

 

Electronic data interchange services

 

 

5,024

 

 

3,977

 

Other services

 

 

4,462

 

 

4,715

 

Maintenance, EDI and other services

 

 

22,045

 

 

18,091

 

 

 

 

 

 

 

 

 

Total revenue

 

 

42,032

 

 

36,074

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

Software, hardware and supplies

 

 

2,488

 

 

1,689

 

Implementation and training services

 

 

2,409

 

 

1,963

 

Total cost of system sales

 

 

4,897

 

 

3,652

 

 

 

 

 

 

 

 

 

     Maintenance

 

 

3,127

 

 

3,137

 

Electronic data interchange services

 

 

3,509

 

 

2,780

 

Other services

 

 

3,009

 

 

1,888

 

Total cost of maintenance, EDI and other services

 

 

9,645

 

 

7,805

 

 

 

 

 

 

 

 

 

Total cost of revenue

 

 

14,542

 

 

11,457

 

 

 

 

 

 

 

 

 

Gross profit

 

 

27,490

 

 

24,617

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Selling, general and administrative

 

 

12,643

 

 

10,200

 

Research and development costs

 

 

2,800

 

 

2,318

 

Total operating expenses

 

 

15,443

 

 

12,518

 

 

 

 

 

 

 

 

 

Income from operations

 

 

12,047

 

 

12,099

 

 

 

 

 

 

 

 

 

Interest income

 

 

739

 

 

667

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

 

12,786

 

 

12,766

 

Provision for income taxes

 

 

4,846

 

 

5,097

 

 

 

 

 

 

 

 

 

Net income

 

$

7,940

 

$

7,669

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

Basic

 

$

0.29

 

$

0.29

 

Diluted

 

$

0.29

 

$

0.28

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding, basic

 

 

27,134

 

 

26,714

 

Weighted average shares outstanding, diluted

 

 

27,657

 

 

27,232

 

 

 

 

 

 

 

 

 

Dividends declared per common share

 

$

0.25

 

$

 

 

 


 

QUALITY SYSTEMS, INC.

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

June 30, 2007

 

March 31, 2007

 

 

    

 

 

    

 

 

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

70,501

 

$

60,028

 

Accounts receivable, net

 

 

66,801

 

 

63,945

 

Inventories, net

 

 

1,142

 

 

1,175

 

Net current deferred tax assets

 

 

3,735

 

 

3,443

 

Other current assets

 

 

4,234

 

 

4,507

 

Total current assets

 

 

146,413

 

 

133,098

 

               

Equipment and improvements, net

 

 

5,074

 

 

5,029

 

Capitalized software costs, net

 

 

7,445

 

 

6,982

 

Net deferred tax assets

 

 

1,462

 

 

1,180

 

Goodwill

 

 

1,840

 

 

1,840

 

Other

 

 

2,748

 

 

2,552

 

Total assets

 

$

164,982

 

$

150,681

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

3,884

 

$

5,246

 

Deferred revenue

 

 

39,807

 

 

38,774

 

Accrued compensation and related benefits

 

 

6,064

 

 

6,521

 

Income taxes payable

 

 

4,171

 

 

315

 

Other current liabilities

 

 

4,708

 

 

5,626

 

Total current liabilities

 

 

58,634

 

 

56,482

 

 

 

 

 

 

 

 

 

Deferred revenue, net of current

 

 

647

 

 

674

 

Deferred compensation

 

 

2,406

 

 

2,279

 

Total liabilities

 

 

61,687

 

 

59,435

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

Common stock, $0.01 par value; authorized 50,000 shares; issued and outstanding 27,238 and 27,123 shares at June 30,2007 and March 31, 2007, respectively

 

 

272

 

 

271

 

Additional paid-in capital

 

 

69,774

 

 

65,666

 

Retained earnings

 

 

33,249

 

 

25,309

 

Total shareholders’ equity

 

 

103,295

 

 

91,246

 

Total liabilities and shareholders’ equity

 

$

164,982

 

$

150,681