IRVINE, Calif. ... January 29, 2009 ... Quality Systems, Inc. (NASDAQ:QSII) today announced the results of operations for its fiscal 2009 third quarter ended December 31, 2008. The Company posted record net revenues of $65.5 million in the third quarter, an increase of 36% from the $48.1 million generated during the same quarter of the prior year. The Company reported net income of $13.2 million, up 17% when compared with net income of $11.2 million reported in the comparable quarter last year. Fully diluted earnings per share reached $0.46 for the quarter, an increase of 15% versus $0.40 fully diluted earnings per share earnings for the same period a year ago.
For the quarter, the Company's NextGen Healthcare Information Systems division posted record revenue of $61.5 million, up 40% when compared with the same quarter in the prior year and record operating income of $22.8 million, up 28% over third quarter last year. The Company's Healthcare Strategic Initiatives acquisition contributed approximately $4.9 million to NextGen revenue during the quarter. The Company's Practice Management Partners acquisition, which closed on October 28, 2008, contributed approximately $2.6 million to NextGen revenue during the quarter.
"We are pleased with the Company's performance for the quarter. The strategic growth initiatives we put in place during the first nine months of this year are continuing to pay off. Our entry into the revenue cycle management business is reaping results as we remain focused on growing the business organically while reinvesting in new product and service development efforts," noted Steven T. Plochocki, president and chief executive officer.
Quality Systems' management will host a conference call to review results of the 2009 third quarter on Friday, January 30, 2009, at 9:00 AM ET (6:00 AM PT). All participants should dial 800-762-9441 at least ten minutes prior to the start of the call. International callers should dial 480-248-5081.
To hear a live web simulcast or to listen to the archived web cast following completion of the call, please visit the Company's 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 800-406-7325 and enter reservation identification number 3968610. The replay will be available from approximately 12:00 PM ET on Friday, January 30, 2009, through 11:59 PM ET on Friday, February 6, 2009. A transcript of the conference call will be made available on the QSII website at www.qsii.com.Quality Systems, Inc.
2009 Third Quarter Results
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.
SAFE HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS
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. Management believes that these forward-looking statements are reasonable and are based on reasonable assumptions and forecasts, however, undue reliance should not be placed on such statements that speak only as of the date hereof. 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: volume and timing of systems sales and installations; length of sales cycles and installation process; the possibility that the products will not achieve market acceptance; seasonal patterns of sales and customer buying behavior; the development by competitors of new or superior technologies; the timing, cost and success or failure of new product and service introductions, development and product upgrade releases; undetected errors or bugs in software; product liability; 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.
For Further Information, Contact:
Quality Systems, Inc.
18111 Von Karman Avenue, Suite 600
Irvine, CA 92612
Phone: (949) 255-2600
Contact: Paul Holt, CFO, firstname.lastname@example.org
Susan J. Lewis
Phone: (303) 804-0494