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Quality
Systems Reports Fourth-Quarter and Fiscal
Year-End Results
HORSHAM, Pa.--(BUSINESS WIRE)--May
27, 2004-- NextGen Healthcare
Information Systems Inc., a subsidiary
of Quality Systems, Inc. (QSII:NASDAQ),
today announced the results of operations
for its fiscal 2004 fourth quarter and
year ended March 31, 2004. The Company
posted net revenue of $18.8 million for
the fourth quarter, an increase of 25%
over the $15.1 million generated during
the comparable quarter of the prior year.
The Company reported net income of $3,104,000,
an increase of 76% over net income of
$1,763,000 earned during the prior year's
fourth quarter. Fully diluted earnings
per share totaled $0.47 in the current
quarter, an increase of 74% over the fully
diluted $0.27 per share recorded in the
same quarter last year.
Revenue for fiscal year ended March 31,
2004, was $70,934,000, an increase of
30% over fiscal 2003 revenue of $54,769,000.
Net income for fiscal 2004 was $10,400,000,
an increase of 48% over fiscal 2003's
net income of $7,035,000. Fully diluted
earnings per share increased to $1.60
in FY 2004 from $1.10 earned during FY
2003, an increase of 45%.
Quality Systems, Inc. will hold a conference
call to discuss fourth-quarter and year-end
financial results today, Thursday, May
27, at 1:00 p.m. EDT (10:00 a.m. PDT).
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 Thursday, May 27, at 1:00
p.m. PDT, through Thursday, June 3, at
midnight EDT. To access the replay dial
800-642-1687 and enter the conference
ID number 7753338.
A transcript of the conference call will
be made available on the QSII Web site
(www.qsii.com).
Quality Systems, Inc. and its NextGen
Healthcare Information Systems subsidiary
develop and market computer-based practice
management, medical 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, and 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.
Quality Systems, Inc.
Consolidated Statements of Operations
and Comprehensive Income
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Three
Months Ended
March
31,
|
Year
Ended
March
31,
|
| Numbers
by 1000's |
| ---------------- |
| 2004 |
2003 |
| ------ |
------ |
|
| ---------------- |
| 2004 |
2003 |
| ------ |
------ |
|
|
Net
Revenues:
Sales of computer systems, upgrades
and supplies Maintenance
and other services |
| 10,166,000 |
8,264,000 |
| 8,621,000 |
6,804,000 |
| ------ |
------ |
| 18,787,000 |
15,068,000 |
|
| 39,525,000 |
29,169,000 |
| 31,409,000 |
25,600,000 |
| ------ |
------ |
| 70,934,000 |
54,769,000 |
|
|
| Cost
of Products and Services |
| 7,048,000 |
6,822,000 |
| ------ |
------ |
|
| 28,673,000 |
23,755,000 |
| ------ |
------ |
|
| Gross
Profit |
|
|
|
| Selling,
General and Administrative Expenses
Research and Development Costs |
| 5,072,000 |
4,260,000 |
| 1,643,000 |
1,367,000 |
| ------ |
------ |
|
| 19,482,000 |
15,293,000 |
| 6,139,000 |
5,062,000 |
| ------ |
------ |
|
|
| Income
from Operations |
|
|
|
| Investment
Income |
| 102,000 |
98,000 |
| ------ |
------ |
|
| 386,000 |
434,000 |
| ------ |
------ |
|
| Income
before Provision for Income Taxes
|
|
|
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| Provision
for Income Taxes |
| 2,022,000 |
954,000 |
| ------ |
------ |
|
| 6,626,000 |
4,058,000 |
| ------ |
------ |
|
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| Net
Income |
| $3,104,000 |
$1,763,000 |
| ====== |
====== |
|
| $10,400,000 |
$7,035,000 |
| ====== |
====== |
|
|
| Income
per Share - Basic |
| $
0.49 |
$
0.29 |
| ======= |
======= |
|
| $
1.67 |
$
1.15 |
| ======= |
======= |
|
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| Income
per Share - Diluted |
| $
0.47 |
$
0.27 |
| ======= |
======= |
|
| $
1.60 |
$
1.10 |
| ======= |
======= |
|
|
Weighted
average
number of shares
outstanding - Basic |
| 6,312,000 |
6,144,000 |
| ======= |
======= |
|
| 6,218,000 |
6,127,000 |
| ======= |
======= |
|
|
Weighted
average
number of shares
outstanding
- Diluted |
| 6,582,000 |
6,431,000 |
| ======= |
======= |
|
| 6,483,000 |
6,389,000 |
| ======= |
======= |
|
Quality Systems, Inc.
Consolidated Balance Sheets
(in thousands)
ASSETS
| |
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March
31,
2004 |
March
31,
2003 |
| |
---- |
---- |
|
Current
Assets:
Cash and cash equivalents
Short-term investments
Accounts receivable, net
Inventories
Other current assets |
|
$ 51,395
|
| |
| 20,336 |
| 725 |
| 3,989 |
| ------- |
|
|
$ 36,443
|
| |
| 17,561 |
| 667 |
| 4,115 |
| ------- |
|
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| Total
current assets |
76,445 |
58,786 |
|
Equipment
and Improvements, net
Capitalized Software Costs, net
Deferred Tax Asset
Excess of Cost Over Net Assets
of Acquired Business, net
Other Assets |
| 2,012 |
| 3,608 |
| 1,497 |
| 1,840 |
| 1,242 |
| ------- |
|
| 1,777 |
| 2,511 |
| 1,819 |
|
1,840
|
| 869 |
| ------- |
|
| Total
assets |
|
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LIABILITIES
AND SHAREHOLDERS' EQUITY
|
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Current
Liabilities:
Accounts payable
Deferred service revenue
Other current liabilities |
|
$1,655
|
| 17,263 |
| 6,721 |
| -------- |
|
|
$2,477
|
| 11,699 |
| 5,893 |
| -------- |
|
| Total
liabilities |
25,639 |
20,069 |
|
| Commitments
and Contingencies |
|
|
|
| Shareholders'
Equity:
Common
stock, $0.01 par value,
20,000
shares authorized, 6,208 and 6,201
shares issued
and outstanding, respectively
Additional paid-in capital
Accumulated deficit
Deferred Compensation |
63
39,735
22,750
(1,543)
|
62
35,121
12,350
--------
|
| Total
shareholders' equity |
61,005 |
47,533 |
Total liabilities and
Shareholders' equity |
$86,644
======= |
$67,602
======= |
Contact:
Quality Systems Inc., Irvine
Lou Silverman, 949/255-2600
www.qsii.com
or
Coffin Communications Group, Sherman Oaks,
Calif.
William F. Coffin/Sean Collins, 818/789-0100
www.coffincg.com
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