EX-99.1 5 d77140_ex99-1.htm PRESS RELEASE

Exhibit 99.1

 

Press Release dated May 29, 2009

 


 

For Further Information, Contact:

Quality Systems, Inc.

Susan J. Lewis

18111 Von Karman Avenue, Suite 600

Phone: (303) 804-0494

Irvine, CA 92612

slewis@qsii.com

Phone: (949) 255-2600

Paul Holt, CFO, pholt@qsii.com

 

FOR IMMEDIATE RELEASE

 

MAY 29, 2009

 

QUALITY SYSTEMS REPORTS FOURTH QUARTER AND  

FISCAL YEAR-END RESULTS

IRVINE, Calif. — May 29, 2009-- Quality Systems, Inc. (NASDAQ:QSII - news) today announced the results of operations for its fiscal 2009 fourth quarter and fiscal year ended March 31, 2009. The Company posted record net revenues of $65.8 million in the fourth quarter, an increase of 29% from the $51.2 million generated during the same quarter of the prior year. The Company reported net income of $11.4 million, up slightly when compared to net income of $11.3 million earned in the comparable quarter of the prior year. Fully diluted earnings per share was $0.40 in the quarter, a decrease of 2% over the fully diluted $0.41 per share earnings recorded in the same quarter last year.

The Company’s results were impacted by the delays in purchasing decisions related to uncertainty surrounding the American Recovery and Reinvestment Act of 2009, which was signed into law in February 2009.

For the quarter, the Company’s NextGen Healthcare Information Systems division posted record revenue of $62.1 million, up 31% over the same quarter of the prior year and record operating income of $21.7 million, up 13% over the same quarter of the prior year.

Revenue for the fiscal year ended March 31, 2009 was $245.5 million, an increase of 32% over fiscal year 2008 revenue of $186.5 million. Net income for fiscal year 2009 was $46.1 million, an increase of 15% over fiscal 2008’s net income of $40.1 million. Fully diluted earnings per share increased to $1.62 in fiscal year 2009 from $1.44 earned during fiscal year 2008, an increase of 13%.

Quality Systems, Inc. will hold a conference call to discuss fourth quarter and fiscal year end financial results on May 29, 2009 at 9:00 am ET (6:00 a.m. PT). All participants should dial 1-877-941-8610 at least ten minutes prior to the start of the call. International callers should dial 1-480-629-9819. To hear a live web simulcast or to listen to the archived web cast following completion of the call, please visit the company web site at www.qsii.com, click on the "Investor Relations" tab, then select "Conference Calls," to access the link to the call. To listen to a telephone replay of the conference call, please dial 1-800-406-7325 and enter reservation identification number 4085340. The replay will be available from approximately 12:00 PM ET on Friday, May 29, 2009, through 11:59 PM ET on Friday, June 5, 2009.

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

Date and Location of 2009 Annual Shareholders’ Meeting

The Annual Shareholders’ Meeting will be held on August 13, 2009 at 1:00 P.M. Pacific Time at The Center Club, 650 Town Center Drive in Costa Mesa, Calif. Holders of record as of June 22, 2009 are eligible to vote and attend. A proxy statement with more information regarding these matters will be

 


sent to shareholders with a 2009 Annual Report and will also be available for viewing through the investor relations section of Quality Systems’ website at www.qsii.com.

 

About Quality Systems, Inc.

Irvine, Calif.-based Quality Systems, Inc. and its NextGen Healthcare Information Systems subsidiary develop and market computer-based practice management, patient records and revenue cycle management applications as well as connectivity products and services 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
  Twelve Months Ended
 
March 31, 2009
  March 31, 2008
  March 31, 2009
  March 31, 2008
Revenues:                    
 Software, hardware and supplies     $ 20,384   $ 20,519   $ 85,386   $ 76,363  
 Implementation and training services       3,629     3,861     13,375     13,406  
     
System sales       24,013     24,380     98,761     89,769  
     
 Maintenance       19,340     15,593     72,862     56,455  
 Electronic data interchange services       7,859     6,281     29,522     22,450  
 Revenue cycle management and related services       8,112     259     21,431     871  
 Other services       6,507     4,719     22,939     16,955  
Maintenance, EDI and other services       41,818     26,852     146,754     96,731  
   Total revenue       65,831     51,232     245,515     186,500  
     
Cost of revenue:                            
 Software, hardware and supplies       3,273     2,938     13,184     10,887  
 Implementation and training services       2,502     2,871     10,286     10,341  
     
Total cost of system sales       5,775     5,809     23,470     21,228  
     
 Maintenance       3,004     3,155     11,859     12,446  
 Electronic data interchange services .       5,686     4,363     21,374     15,776  
 Revenue cycle management and related services       5,762     156     14,674     558  
 Other services       5,114     3,553     17,513     12,493  
Total cost of maintenance and other services       19,566     11,227     65,420     41,273  
   Total cost of revenue       25,341     17,036     88,890     62,501  
   Gross profit       40,490     34,196     156,625     123,999  
     
Operating expenses:                            
  Selling, general and administrative       18,309     14,146     70,445     53,260  
  Research and development costs       3,692     2,988     13,777     11,350  
     Total operating expenses       22,001     17,134     84,222     64,610  
   Income from operations       18,489     17,062     72,403     59,389  
     
Interest income       161     567     1,203     2,661  
Other income (expense)       (279 )       (279 )   953  
Income before provision for income taxes       18,371     17,629     73,327     63,003  
Provision for income taxes       7,015     6,377     27,208     22,925  
   Net income     $ 11,356   $ 11,252   $ 46,119   $ 40,078  
     
Net income per share:                            
  Basic     $ 0.40   $ 0.41   $ 1.65   $ 1.47  
  Diluted     $ 0.40   $ 0.41   $ 1.62   $ 1.44  
     
Weighted average shares outstanding:                            
Basic       28,393     27,408     28,031     27,298  
Diluted       28,526     27,712     28,396     27,770  
Dividends declared per common share     $ 0.30   $ 0.25   $ 1.15   $ 1.00  

 

 


 

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

 

March 31,
2009

  March 31,
2008

ASSETS            
Current assets:    
      Cash and cash equivalents     $ 70,180   $ 59,046  
      Restricted cash       1,303      
      Marketable securities           2,500  
      Accounts receivable, net       90,070     76,585  
      Inventories, net       1,125     1,024  
      Income tax receivable       5,605      
      Net current deferred tax assets       3,994     6,397  
      Other current assets       6,312     4,596  
                 
       Total current assets       178,589     150,148  
                 
Marketable securities       7,395     20,124  
Equipment and improvements, net       6,756     4,773  
Capitalized software costs, net       9,552     8,852  
Intangibles, net       8,403      
Goodwill       28,731     1,840  
Other assets       2,675     2,171  
                 
       Total assets     $ 242,101   $ 187,908  
     
LIABILITIES AND SHAREHOLDERS’ EQUITY                
Current liabilities:                
      Accounts payable     $ 5,097   $ 4,685  
      Deferred revenue       47,584     44,389  
      Accrued compensation and related benefits       9,511     8,346  
      Income taxes payable           1,541  
      Dividends payable       8,529     6,861  
      Other current liabilities       8,888     4,394  
                 
       Total current liabilities       79,609     70,216  
                 
Deferred revenue, net of current       521     506  
Net deferred tax liabilities       4,566     1,575  
Deferred compensation       1,838     1,906  
                 
       Total liabilities       86,534     74,203  
Commitments and contingencies    
     
Shareholders' equity:                
Common stock                
      $0.01 par value; authorized 50,000 shares; issued and
      outstanding 28,447 and 27,448 shares at March 31, 2009 and
      March 31, 2008, respectively
      284     274  
Additional paid-in capital       103,524     75,556  
Retained earnings       51,759     38,071  
Accumulated other comprehensive loss, net of tax           (196 )
                 
       Total shareholders’ equity       155,567     113,705  
                 
       Total liabilities and shareholders’ equity     $ 242,101   $ 187,908