Attached files
file | filename |
---|---|
8-K - FORM 8-K - NEXTGEN HEALTHCARE, INC. | a58489e8vk.htm |
Exhibit 99.1
For Further Information, Contact: |
||
Quality Systems, Inc.
|
Susan J. Lewis | |
18111 Von Karman Avenue, Suite 700
|
Phone: (303) 804-0494 | |
Irvine, CA 92612
|
slewis@qsii.com | |
Phone: (949) 255-2600 |
||
Paul Holt, CFO, pholt@qsii.com |
FOR IMMEDIATE RELEASE
January 28, 2011
January 28, 2011
QUALITY SYSTEMS REPORTS RECORD FISCAL 2011 THIRD QUARTER RESULTS;
INCREASES QUARTERLY DIVIDEND
INCREASES QUARTERLY DIVIDEND
Company Well Positioned as First Year of Stimulus Incentives Kick in
IRVINE, Calif. ... January 28, 2011 ... Quality Systems, Inc. (NASDAQ:QSII) announced today
the results of operations for its fiscal 2011 third quarter ended December 31, 2010.
The Company reported record net revenues of $91.9 million for the fiscal 2011 third quarter,
an increase of 23 percent from the $75.0 million reported in the same period a year ago. The
Company reported net income of $17.5 million, up 33 percent versus net income of $13.2 million for
the comparable period last year. Fully diluted earnings per share were $0.60 in the fiscal 2011
third quarter; rising 33 percent when compared with $0.46 fully diluted earnings per share for the
third quarter of fiscal 2010.
Quality Systems, Inc. also announced that the Companys Board of Directors increased the cash
dividend by five cents ($0.05), or 17 percent, to Thirty-Five Cents ($0.35) per share on the
Companys outstanding shares of Common Stock, payable to shareholders of record as of March 17,
2011, with an anticipated distribution date of April 5, 2011. The $0.35 per share cash dividend is
pursuant to the Companys current policy to pay a regular quarterly dividend 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.
We are very pleased with the Companys third quarter performance. Our entire organization
has worked very hard preparing for the first year of incentives provided under The American
Recovery and Reinvestment Act (ARRA). The team is ready to witness the fruits of their labor,
noted Steven T. Plochocki, Quality Systems chief executive officer.
- more -
Quality Systems, Inc.
Fiscal 2011 Third Quarter Results
Page 2
Fiscal 2011 Third Quarter Results
Page 2
As we said for the past 22 months since the bill was first introduced, there were levels of
uncertainty and speculation, but once certification was announced in October 2010 and the
regulations for Stage 1 Meaningful Use were finalized, the path became very clear. We are in a
very positive position to take advantage of the benefits stemming from the first year of the
stimulus incentives. Additionally, the Boards declaration to increase our quarterly dividend is
indicative of the Companys strength in the marketplace and optimism about the future. We remain
very encouraged by the industry opportunity before us, and confident in the certified electronic
health solutions we bring to the physician, dental and hospital marketplaces, Plochocki concluded.
Quality Systems, Inc. will host a conference call to discuss its fiscal 2011 third quarter
results on Friday, January 28, 2011 at 10:00 AM ET (7:00 AM PT). All participants should dial
866-225-8754 at least ten minutes prior to the start of the call. International callers should
dial 480-629-9692. 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 Investors
tab, then select Conference Calls, to access the link to the call. To listen to a telephone
replay of the conference call, please dial 1-800-406-7325 or 303-590-3030 and enter reservation
identification number 4403880. The replay will be available from approximately 12:00 PM ET on
Friday, January 28, 2011, through 11:59 PM ET on Friday, February 4, 2011.
A transcript of the conference call will be made available on the Companys website at
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, electronic health records and revenue cycle management
applications as well as connectivity products and services for medical and dental group practices
and small hospitals. 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
- more -
Quality Systems, Inc.
Fiscal 2011 Third Quarter Results
Page 3
Fiscal 2011 Third Quarter Results
Page 3
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; 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 TABLES ATTACHED
QUALITY SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS)
(UNAUDITED)
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS)
(UNAUDITED)
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenues: |
||||||||||||||||
Software, hardware and supplies |
$ | 29,675 | $ | 24,346 | $ | 74,806 | $ | 64,978 | ||||||||
Implementation and training services |
4,262 | 3,313 | 13,069 | 10,150 | ||||||||||||
System sales |
33,937 | 27,659 | 87,875 | 75,128 | ||||||||||||
Maintenance |
27,908 | 22,139 | 80,973 | 65,254 | ||||||||||||
Electronic data interchange services |
10,360 | 8,897 | 30,266 | 25,855 | ||||||||||||
Revenue cycle management and related services |
11,496 | 9,602 | 33,443 | 27,482 | ||||||||||||
Other services |
8,170 | 6,665 | 23,698 | 19,579 | ||||||||||||
Maintenance, EDI, RCM and other services |
57,934 | 47,303 | 168,380 | 138,170 | ||||||||||||
Total revenues |
91,871 | 74,962 | 256,255 | 213,298 | ||||||||||||
Cost of revenue: |
||||||||||||||||
Software, hardware and supplies |
5,667 | 2,810 | 16,575 | 9,251 | ||||||||||||
Implementation and training services |
3,677 | 2,898 | 10,142 | 9,075 | ||||||||||||
Total cost of system sales |
9,344 | 5,708 | 26,717 | 18,326 | ||||||||||||
Maintenance |
3,381 | 3,392 | 10,073 | 9,672 | ||||||||||||
Electronic data interchange services |
6,908 | 6,525 | 20,390 | 18,579 | ||||||||||||
Revenue cycle management and related services |
8,715 | 7,124 | 25,082 | 20,502 | ||||||||||||
Other services |
3,981 | 5,560 | 12,054 | 15,430 | ||||||||||||
Total cost of maintenance, EDI, RCM and other services |
22,985 | 22,601 | 67,599 | 64,183 | ||||||||||||
Total cost of revenue |
32,329 | 28,309 | 94,316 | 82,509 | ||||||||||||
Gross profit |
59,542 | 46,653 | 161,939 | 130,789 | ||||||||||||
Operating expenses: |
||||||||||||||||
Selling, general and administrative |
27,958 | 21,574 | 79,025 | 61,728 | ||||||||||||
Research and development costs |
5,358 | 3,954 | 16,046 | 12,277 | ||||||||||||
Amortization of acquired intangible assets |
445 | 377 | 1,237 | 1,101 | ||||||||||||
Total operating expenses |
33,761 | 25,905 | 96,308 | 75,106 | ||||||||||||
Income from operations |
25,781 | 20,748 | 65,631 | 55,683 | ||||||||||||
Interest income |
55 | 43 | 244 | 180 | ||||||||||||
Other income, net |
| 136 | 59 | 194 | ||||||||||||
Income before provision for income taxes |
25,836 | 20,927 | 65,934 | 56,057 | ||||||||||||
Provision for income taxes |
8,305 | 7,775 | 22,881 | 20,739 | ||||||||||||
Net income |
$ | 17,531 | $ | 13,152 | $ | 43,053 | $ | 35,318 | ||||||||
Net income per share: |
||||||||||||||||
Basic |
$ | 0.60 | $ | 0.46 | $ | 1.49 | $ | 1.24 | ||||||||
Diluted |
$ | 0.60 | $ | 0.46 | $ | 1.48 | $ | 1.23 | ||||||||
Weighted-average shares outstanding: |
||||||||||||||||
Basic |
28,978 | 28,667 | 28,936 | 28,586 | ||||||||||||
Diluted |
29,140 | 28,833 | 29,091 | 28,755 | ||||||||||||
Dividends declared per common share |
$ | 0.30 | $ | 0.30 | $ | 0.90 | $ | 0.90 |
QUALITY SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
December 31, | March 31, | |||||||
2010 | 2010 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 118,221 | $ | 84,611 | ||||
Restricted cash |
2,956 | 2,339 | ||||||
Marketable securities |
| 7,158 | ||||||
Accounts receivable, net |
123,196 | 107,458 | ||||||
Inventories |
1,942 | 1,340 | ||||||
Income taxes receivable |
| 2,953 | ||||||
Deferred income taxes, net |
5,470 | 5,678 | ||||||
Other current assets |
7,356 | 8,684 | ||||||
Total current assets |
259,141 | 220,221 | ||||||
Equipment and improvements, net |
10,940 | 8,432 | ||||||
Capitalized software costs, net |
14,931 | 11,546 | ||||||
Intangibles, net |
17,720 | 20,145 | ||||||
Goodwill |
46,189 | 46,189 | ||||||
Other assets |
4,576 | 3,647 | ||||||
Total assets |
$ | 353,497 | $ | 310,180 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 5,525 | $ | 3,342 | ||||
Deferred revenue |
71,897 | 64,109 | ||||||
Accrued compensation and related benefits |
9,322 | 8,951 | ||||||
Income taxes payable |
1,157 | | ||||||
Dividends payable |
8,693 | 8,664 | ||||||
Other current liabilities |
20,955 | 16,220 | ||||||
Total current liabilities |
117,549 | 101,286 | ||||||
Deferred revenue, net of current |
870 | 474 | ||||||
Deferred income taxes, net |
10,108 | 10,859 | ||||||
Deferred compensation |
2,240 | 1,883 | ||||||
Other noncurrent liabilities |
10,747 | 7,389 | ||||||
Total liabilities |
141,514 | 121,891 | ||||||
Commitments and contingencies |
||||||||
Shareholders equity: |
||||||||
Common stock |
||||||||
$0.01 par value; authorized 50,000 shares; issued
and outstanding 28,976 and 28,879 shares at
December 31, 2010 and March 31, 2010,
respectively |
290 | 289 | ||||||
Additional paid-in capital |
128,964 | 122,271 | ||||||
Retained earnings |
82,729 | 65,729 | ||||||
Total shareholders equity |
211,983 | 188,289 | ||||||
Total liabilities and shareholders equity |
$ | 353,497 | $ | 310,180 | ||||
# # #