 |
|
| |
|
|
|
|
Quality Systems Reports Second-Quarter
Results
IRVINE, Calif.--(BUSINESS WIRE)--Nov.
3, 2004--Quality Systems,
Inc. (NASDAQ:QSII - News) today announced
the results of operations for its fiscal
2005 second quarter ended September 30,
2004.
The Company posted net revenues of $21.2
million in the second quarter, an increase
of 20% from $17.6 million generated during
the same quarter last year. The Company
reported net income of $3,715,000, an
increase of 54% over net income of $2,408,000
earned in the comparable quarter of the
prior year. Fully diluted earnings per
share was $0.56 in the quarter, an increase
of 51% over the fully diluted $0.37 per
share earnings recorded in the same quarter
last year.
The revenue and net income results achieved
in the quarter were records for the Company.
Results in the second quarter were driven
by record revenue and profit in the Company's
NextGen Healthcare Information Systems
division. For the quarter, the Company's
NextGen Healthcare Information Systems
division posted record revenue of $17.3
million, up 28% over the same quarter
of the prior year, and record operating
income of $6.1 million, up 58% over the
same quarter of the prior year.
Quality Systems, Inc. will hold a conference
call to discuss second quarter financial
results on Wednesday, November 3, 2004,
at 1:00 p.m. EST. 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 Wednesday, November 3,
at 3:30 p.m. EST, through Wednesday, November
10 at midnight EST. To access a replay,
dial 800-642-1687 and enter the conference
ID number 1822543.
Please note that beginning with the reporting
of the Company's third quarter fiscal
2005 results, future earnings releases
and conference calls will occur after
the market close.
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, 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
 |
|
|
| |
|
|
| |
Three
Months Ended
September
30,
|
Six
Months Ended
September
30, |
| Numbers
by 1000's |
| ---------------- |
| 2004 |
2003 |
| ------ |
------ |
|
| ---------------- |
| 2004 |
2003 |
| ------ |
------ |
|
|
Net
Revenues:
Sales of computer systems, upgrades
and supplies Maintenance
and other services |
| 11,607,000 |
10,026,000 |
| 9,610,000 |
7,616,000 |
| ------ |
------ |
| 21,217,000 |
17,642,000 |
|
| 22,575,000 |
19,500,000 |
| 18,671,000 |
14,448,000 |
| ------ |
------ |
| 41,347,000 |
33,948,000 |
|
|
| Cost
of Products and Services |
| 7,937,000 |
7,492,000 |
| ------ |
------ |
|
| 16,038,000 |
14,102,000 |
| ------ |
------ |
|
| Gross
Profit |
|
|
|
| Selling,
General and Administrative Expenses
Research and Development Costs |
| 5,414,000 |
4,768,000 |
| 1,818,000 |
1,502,000 |
| ------ |
------ |
|
| 10,367,000 |
9,508,000 |
| 3,430,000 |
2,868,000 |
| ------ |
------ |
|
|
| Income
from Operations |
|
|
|
| Investment
Income |
| 170,000 |
89,000 |
| ------ |
------ |
|
| 290,000 |
189,000 |
| ------ |
------ |
|
| Income
before Provision for Income Taxes
|
|
|
|
| Provision
for Income Taxes |
| 2,503,000 |
1,561,000 |
| ------ |
------ |
|
| 4,705,000 |
2,974,000 |
| ------ |
------ |
|
|
| Net
Income |
| $3,715,000 |
$2,408,000 |
| ====== |
====== |
|
| $7,097,000 |
$4,685,000 |
| ====== |
====== |
|
|
| Income
per Share - Basic |
| $
0.58 |
$
0.39 |
| ======= |
======= |
|
| $
1.12 |
$
0.76 |
| ======= |
======= |
|
|
| Income
per Share - Diluted |
| $
0.56 |
$
0.37 |
| ======= |
======= |
|
| $
1.08 |
$
0.72 |
| ======= |
======= |
|
|
Weighted
average
number of shares
outstanding - Basic |
| 6,390,000 |
6,167,000 |
| ======= |
======= |
|
| 6,361,000 |
6,162,000 |
| ======= |
======= |
|
|
Weighted
average
number of shares
outstanding
- Diluted |
| 6,598,000 |
6,491,000 |
| ======= |
======= |
|
| 6,580,000 |
6,479,000 |
| ======= |
======= |
|
Quality Systems, Inc.
Consolidated Balance Sheets
(in thousands)
ASSETS
| |
|
|
| |
Setp.
30,
2004 |
March
31,
2003 |
| |
---- |
---- |
|
Current
Assets:
Cash and cash equivalents
Short-term investments
Accounts receivable, net
Inventories
Other current assets |
|
$ 59,522
|
| |
| 25,198 |
| 1,058 |
| 2,979 |
| ------- |
|
|
$ 51,395
|
| |
| 20,336 |
| 725 |
| 3,989 |
| ------- |
|
|
| Total
current assets |
90,352 |
76,445 |
|
Equipment
and Improvements, net
Capitalized Software Costs, net
Deferred Tax Asset
Excess of Cost Over Net Assets
of Acquired Business, net
Other Assets |
| 2,302 |
| 3,707 |
| 1,104 |
| 1,840 |
| 1,282 |
| ------- |
|
| 2,012 |
| 3,608 |
| 1,497 |
| 1,840 |
| 1,242 |
| ------- |
|
| Total
assets |
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
| |
|
|
Current
Liabilities:
Accounts payable
Deferred service revenue
Other current liabilities |
|
$2,068
|
| 20,933 |
| 8,476 |
| -------- |
|
|
$1,655
|
| 17,263 |
| 6,721 |
| -------- |
|
| Total
liabilities |
31,477 |
25,639 |
|
| 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 |
64
40,527
29,847
(1,328)
|
63
39,735
22,750
(1,543)
|
| Total
shareholders' equity |
69,110 |
61,005 |
Total liabilities and
Shareholders' equity |
$100,587
======= |
$86,644
======= |
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
|
| |
|
|
| |
|
|
