Attached files
file | filename |
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EX-10.3 - EX-10.3 - NEXTGEN HEALTHCARE, INC. | a56375exv10w3.htm |
EX-10.2 - EX-10.2 - NEXTGEN HEALTHCARE, INC. | a56375exv10w2.htm |
EX-10.4 - EX-10.4 - NEXTGEN HEALTHCARE, INC. | a56375exv10w4.htm |
EX-10.1 - EX-10.1 - NEXTGEN HEALTHCARE, INC. | a56375exv10w1.htm |
8-K - FORM 8-K - NEXTGEN HEALTHCARE, INC. | a56375e8vk.htm |
Exhibit 99.1
For Further Information, Contact: |
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Quality Systems, Inc.
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Susan J. Lewis | |
18111 Von Karman Avenue, Suite 600
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Phone: (303) 804-0494 | |
Irvine, CA 92612
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slewis@qsii.com | |
Phone: (949) 255-2600 |
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Paul Holt, CFO, pholt@qsii.com |
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FOR IMMEDIATE RELEASE May 28, 2010 |
QUALITY SYSTEMS REPORTS FISCAL 2010 FOURTH QUARTER AND
YEAR-END RESULTS
YEAR-END RESULTS
IRVINE, Calif. ... May 28, 2010 ... Quality Systems, Inc. (NASDAQ:QSII) today announced
the results of operations for its fiscal 2010 fourth quarter and year ended March 31, 2010. The
Company posted record net revenues of $78.5 million in the fourth quarter, an increase of 19%
from $65.8 million generated during the same quarter of the prior year. The Company reported net
income of $13.1 million, up 15% when compared with net income of $11.4 million for the comparable
quarter last year. Fully diluted earnings per share were $0.45 in the quarter, an increase of
13% versus $0.40 fully diluted earnings per share reported in the same quarter last year.
The fourth quarter results were negatively impacted by amortization of acquired intangibles and
transaction costs related to the acquisition of Opus Healthcare Solutions, Inc. Also impacting
the results were decreases in collections from the Companys revenue cycle management (RCM)
division due to record snowfall across the East Coast and seasonality.
Revenue for the fiscal year ended March 31, 2010 was $291.8 million, an increase of 19% when
compared with fiscal year 2009 revenue of $245.5 million. Net income for fiscal year 2010 was
$48.4 million, an increase of 5% from fiscal 2009 net income of $46.1 million. Fully diluted
earnings per share increased to $1.68 in fiscal year 2010 from $1.62 earned during fiscal year
2009, up 4%.
The Company also announced the resignation of Chief Operating Officer Philip N. Kaplan.
Operational responsibility of the Companys business units has been assumed by Patrick Cline,
president of Quality Systems.
Steven T. Plochocki, chief executive officer, commented on the results, stating: We continue to
focus on strategically positioning the Company for growth and additional market penetration
expected to result from the American Recovery and Reinvestment Act (ARRA) by prudently investing
in sales, marketing, implementation and training. Phils contributions and efforts in preparing
the infrastructure of the Company for the five-year stimulus run proved extremely beneficial, and
we thank him for his contributions.
-more-
Quality Systems, Inc.
Fiscal 2010 Fourth Quarter and Year-end Results
Page 2
Fiscal 2010 Fourth Quarter and Year-end Results
Page 2
Quality Systems, Inc. announced today that the Companys Board of Directors declared a cash
dividend of thirty cents ($0.30) per share on the Companys outstanding shares of Common Stock,
payable to shareholders of record as of June 17, 2010, with an anticipated distribution date of
July 6, 2010, pursuant to the Companys current policy to pay a regular quarterly dividend of
thirty cents ($0.30) per share on the Companys outstanding shares of Common Stock, subject to
further Board review and approval, and establishment of record and distribution dates by the
Board prior to the declaration and payment of each such quarterly dividend.
The Company also announced that its 2010 Annual Shareholders Meeting will be held on August 11,
2010 at 1:00 PM. The meeting will be held at the Marriott Irvine located at 18000 Von Karman
Avenue, in Irvine, Calif., 92612. Holders of record as of June 15, 2010 are eligible to vote and
attend. Proxy materials and the 2010 Annual Report will be made available to shareholders of
record and will also be posted on the Companys website at www.qsii.com.
Quality Systems, Inc. will hold a conference call to discuss its fiscal 2010 fourth quarter and
year-end financial results on Friday, May 28, 2010 at 10:00 AM ET (7:00 AM PT). All participants
should dial 877-941-6009 at least ten minutes prior to the start of the call. International
callers should dial 480-629-9770. To hear a live Web simulcast or to listen to the archived
webcast following completion of the call, please visit the company website 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 800-406-7325 or 303-590-3030
and enter reservation identification number 4305314. The replay will be available from
approximately 12:00 PM ET on Friday, May 28, 2010, through 11:59 PM ET on Friday, June 4, 2010.
A transcript of the conference call will be made available on the QSII website (www.qsii.com).
About Quality Systems, Inc.
Irvine, Calif.-based Quality Systems, Inc. and its NextGen Healthcare 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 Companys future
performance, as well as managements 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: 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 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;
-more-
Quality Systems, Inc.
Fiscal 2010 Fourth Quarter and Year-end Results
Page 3
Fiscal 2010 Fourth Quarter and Year-end Results
Page 3
changes in product-pricing policies; availability of third-party products and components;
competitive pressures including product offerings, pricing and promotional activities; the
Companys ability or inability to attract and retain qualified personnel; possible regulation of
the Companys 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 the Companys periodic reports and registration statements filed with the
Securities and Exchange Commission. A significant portion of the Companys 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 Companys revenues and operating results are very
difficult to forecast. A major portion of the Companys 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 Companys 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)
(UNAUDITED)
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS)
(UNAUDITED)
Three Months Ended March 31, | Twelve Months Ended March 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenues: |
||||||||||||||||
Software, hardware and supplies |
$ | 24,783 | $ | 20,384 | $ | 89,761 | $ | 85,386 | ||||||||
Implementation and training services |
4,226 | 3,629 | 14,376 | 13,375 | ||||||||||||
System sales |
29,009 | 24,013 | 104,137 | 98,761 | ||||||||||||
Maintenance |
23,938 | 19,340 | 89,192 | 72,862 | ||||||||||||
Electronic data interchange services |
9,181 | 7,859 | 35,035 | 29,522 | ||||||||||||
Revenue cycle management and related services |
9,183 | 8,112 | 36,665 | 21,431 | ||||||||||||
Other services |
7,202 | 6,507 | 26,782 | 22,939 | ||||||||||||
Maintenance, EDI, RCM and other services |
49,504 | 41,818 | 187,674 | 146,754 | ||||||||||||
Total revenues |
78,513 | 65,831 | 291,811 | 245,515 | ||||||||||||
Cost of revenue: |
||||||||||||||||
Software, hardware and supplies |
2,864 | 3,273 | 12,115 | 13,184 | ||||||||||||
Implementation and training services |
2,908 | 2,502 | 11,983 | 10,286 | ||||||||||||
Total cost of system sales |
5,772 | 5,775 | 24,098 | 23,470 | ||||||||||||
Maintenance |
3,667 | 3,004 | 13,339 | 11,859 | ||||||||||||
Electronic data interchange services |
6,683 | 5,686 | 25,262 | 21,374 | ||||||||||||
Revenue cycle management and related services |
7,213 | 5,762 | 27,715 | 14,674 | ||||||||||||
Other services |
4,963 | 5,114 | 20,393 | 17,513 | ||||||||||||
Total cost of maintenance, EDI, RCM and other services |
22,526 | 19,566 | 86,709 | 65,420 | ||||||||||||
Total cost of revenue |
28,298 | 25,341 | 110,807 | 88,890 | ||||||||||||
Gross profit |
50,215 | 40,490 | 181,004 | 156,625 | ||||||||||||
Operating expenses: |
||||||||||||||||
Selling, general and administrative |
25,223 | 17,952 | 86,951 | 69,410 | ||||||||||||
Research and development costs |
4,269 | 3,692 | 16,546 | 13,777 | ||||||||||||
Amortization of acquired intangible assets |
682 | 357 | 1,783 | 1,035 | ||||||||||||
Total operating expenses |
30,174 | 22,001 | 105,280 | 84,222 | ||||||||||||
Income from operations |
20,041 | 18,489 | 75,724 | 72,403 | ||||||||||||
Interest income |
46 | 161 | 226 | 1,203 | ||||||||||||
Other income (expense) |
74 | (279 | ) | 268 | (279 | ) | ||||||||||
Income before provision for income taxes |
20,161 | 18,371 | 76,218 | 73,327 | ||||||||||||
Provision for income taxes |
7,100 | 7,015 | 27,839 | 27,208 | ||||||||||||
Net income |
$ | 13,061 | $ | 11,356 | $ | 48,379 | $ | 46,119 | ||||||||
Net income per share: |
||||||||||||||||
Basic |
$ | 0.45 | $ | 0.40 | $ | 1.69 | $ | 1.65 | ||||||||
Diluted |
$ | 0.45 | $ | 0.40 | $ | 1.68 | $ | 1.62 | ||||||||
Weighted average shares outstanding: |
||||||||||||||||
Basic |
28,784 | $ | 28,393 | 28,635 | 28,031 | |||||||||||
Diluted |
28,929 | $ | 28,526 | 28,796 | 28,396 | |||||||||||
Dividends declared per common share |
$ | 0.30 | $ | 0.30 | $ | 1.20 | $ | 1.15 |
QUALITY SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
March 31, | March 31, | |||||||
2010 | 2009 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 84,611 | $ | 70,180 | ||||
Restricted cash |
2,339 | 1,303 | ||||||
Marketable securities |
7,158 | | ||||||
Accounts receivable, net |
107,458 | 90,070 | ||||||
Inventories, net |
1,340 | 1,125 | ||||||
Income taxes receivable |
2,953 | 5,605 | ||||||
Net current deferred tax assets |
5,678 | 3,994 | ||||||
Other current assets |
8,684 | 6,312 | ||||||
Total current assets |
220,221 | 178,589 | ||||||
Marketable securities |
| 7,395 | ||||||
Equipment and improvements, net |
8,432 | 6,756 | ||||||
Capitalized software costs, net |
11,546 | 9,552 | ||||||
Intangibles, net |
20,145 | 8,403 | ||||||
Goodwill |
46,189 | 28,731 | ||||||
Other assets |
3,647 | 2,675 | ||||||
Total assets |
$ | 310,180 | $ | 242,101 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 3,342 | $ | 5,097 | ||||
Deferred revenue |
64,109 | 47,584 | ||||||
Accrued compensation and related benefits |
8,951 | 9,511 | ||||||
Dividends payable |
8,664 | 8,529 | ||||||
Other current liabilities |
16,220 | 8,888 | ||||||
Total current liabilities |
101,286 | 79,609 | ||||||
Deferred revenue, net of current |
474 | 521 | ||||||
Net deferred tax liabilities |
10,859 | 4,566 | ||||||
Deferred compensation |
1,883 | 1,838 | ||||||
Other noncurrent liabilities |
7,389 | | ||||||
Total liabilities |
121,891 | 86,534 | ||||||
Commitments and contingencies |
||||||||
Shareholders equity |
||||||||
Common Stock |
||||||||
$0.01 par value; authorized 50,000 shares; issued and
outstanding 28,879 and 28,447 shares at March 31, 2010
and March 31, 2009, respectively |
289 | 284 | ||||||
Additional paid-in capital |
122,271 | 103,524 | ||||||
Retained earnings |
65,729 | 51,759 | ||||||
Total shareholders equity |
188,289 | 155,567 | ||||||
Total liabilities and shareholders equity |
$ | 310,180 | $ | 242,101 | ||||