
	For more information contact:

FOR IMMEDIATE RELEASE	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 THIRD QUARTER RESULTS

IRVINE, Calif.—(BUSINESS WIRE)— February 5, 2008—Quality Systems, Inc. (NASDAQ:QSII - news) today announced the results of operations for its fiscal 2008 third quarter ended December 31, 2007. The Company posted net revenues of $48.1 million in the third quarter, an increase of 25% from the $38.5 million generated during the same quarter last year. The Company reported record net income of $11.2 million, an increase of 29% over net income of $8.7 million earned in the comparable quarter of the prior year. Fully diluted earnings per share was $0.40 in the quarter, a record for the Company, and an increase of 25% over the fully diluted $0.32 per share earnings recorded in the same quarter last year.

For the quarter, the Company’s NextGen Healthcare Information Systems division posted record revenue of $44.0 million, up 29% over the same quarter prior year and record operating income of $17.8 million, up 33% over the same quarter of the prior year.

The quarter’s financial performance was positively impacted by a net $0.03 per share, as a result of life insurance proceeds and associated compensation expense related to the passing of Mr. Greg Flynn, the Company’s Executive Vice President and General Manager.

Quality Systems, Inc. will hold a conference call to discuss third quarter financial results February 5, 2008 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 Tuesday, February 5, 2008 at 6:30 p.m. EST through Tuesday, February 12, 2008 at midnight EST. To access the replay dial 800-642-1687 and enter the conference ID number 33740575.

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 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
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)


	THREE MONTHS ENDED						NINE MONTHS ENDED

	DECEMBER 31, 2007			DECEMBER 31, 2006			DECEMBER 31, 2007			DECEMBER 31, 2006


Revenues:
Software, hardware and supplies		$	20,591		$	16,088		$	55,844		$	47,854
Implementation and training services			3,115			2,885			9,545			8,687

System sales			23,706			18,973			65,389			56,541


Maintenance			14,861			11,069			40,862			30,107
Electronic data interchange services (EDI)			5,739			4,290			16,169			12,333
Other services			3,784			4,164			12,848			13,048

Maintenance, EDI and other services			24,384			19,523			69,879			55,488


Total revenue			48,090			38,496			135,268			112,029

Cost of revenue:
Software, hardware and supplies			2,984			1,798			7,949			5,210
Implementation and training services			2,638			2,169			7,469			6,285

Total cost of system sales			5,622			3,967			15,418			11,495


Maintenance			3,131			3,058			9,292			8,987
Electronic data interchange services			4,162			3,144			11,413			8,850
Other services			3,233			2,528			9,342			6,655

Total cost of maintenance and other services			10,526			8,730			30,047			24,492

Total cost of revenue			16,148			12,697			45,465			35,987


Gross profit			31,942			25,799			89,803			76,042


Operating expenses:
Selling, general and administrative			13,283			10,593			39,114			30,787
Research and development costs			2,874			2,601			8,362			7,510

Total operating expenses			16,157			13,194			47,476			38,297


Income from operations			15,785			12,605			42,327			37,745

Interest income			710			935			2,094			2,421
Other income			953			—			953			—


Income before provision for income taxes			17,448			13,540			45,374			40,166
Provision for income taxes			6,234			4,819			16,548			15,439


Net income		$	11,214		$	8,721		$	28,826		$	24,727

Net income per share:
Basic		$	0.41		$	0.32		$	1.06		$	0.92

Diluted		$	0.40		$	0.32		$	1.04		$	0.90


Weighted average shares outstanding:
Basic			27,362			26,966			27,261			26,828

Diluted			27,696			27,507			27,739			27,441

Dividends declared per common shares		$	0.25		$	—		$	0.75		$	—

QUALITY SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)


	DECEMBER 31, 2007			MARCH 31, 2007


ASSETS

Current assets:
Cash and cash equivalents		$	30,013		$	60,028
Marketable securities			48,400			—
Accounts receivable, net			72,906			63,945
Inventories, net			1,333			1,175
Net current deferred tax assets			4,106			3,443
Other current assets			3,498			4,507

Total current assets			160,256			133,098

Equipment and improvements, net			4,946			5,029
Capitalized software costs, net			8,367			6,982
Net deferred tax assets			1,636			1,180
Goodwill			1,840			1,840
Other assets			2,498			2,552

Total assets		$	179,543		$	150,681


LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:
Accounts payable		$	5,818		$	5,246
Deferred revenue			40,574			38,774
Accrued compensation and related benefits			7,420			6,521
Income taxes payable			2,899			315
Other current liabilities			5,218			5,626

Total current liabilities			61,929			56,482

Deferred revenue, net of current			717			674
Deferred compensation			2,231			2,279

			64,877			59,435


Commitments and contingencies

Shareholders’ equity:
Common stock, $0.01 par value; authorized 50,000 shares; issued and outstanding 27,393 and 27,123 shares at December 31, 2007 and March 31, 2007, respectively			274			271
Additional paid-in capital			73,871			65,666
Retained earnings			40,521			25,309

Total shareholders’ equity			114,666			91,246

Total liabilities and shareholders’ equity		$	179,543		$	150,681


CALIFORNIA	0-13801	95-2888568

(State or other	(Commission File Number)	(IRS Employer

jurisdiction of incorporation)		Identification Number)


Date: February 6, 2008	QUALITY SYSTEMS, INC.

	By:	/s/ Paul Holt

		Paul Holt
		Chief Financial Officer


Exhibit Number		Description

99.1		Press Release dated February 5, 2008.


Item 2.02	Results of Operations and Financial Condition.


	Exhibit 99.1	Press release dated February 5, 2008 of Quality Systems, Inc.


Item 9.01	Financial Statements and Exhibits