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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
(QUALITY SYSTEMS INC. LOGO)
     
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 28, 2010
   
QUALITY SYSTEMS REPORTS FISCAL 2010 FOURTH QUARTER AND
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 Company’s 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 Company’s 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. Phil’s 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
Quality Systems, Inc. announced today that the Company’s Board of Directors declared a cash dividend of thirty cents ($0.30) per share on the Company’s 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 Company’s current policy to pay a regular quarterly dividend of thirty cents ($0.30) per share on the Company’s 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 Company’s 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 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: 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;
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Quality Systems, Inc.
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 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 the Company’s 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)
(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)
                 
    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