Quality Systems, Inc. Reports Record Fiscal 2012 Third Quarter Results
IRVINE, Calif.--(BUSINESS WIRE)-- Quality Systems, Inc. (QSII) announced today results for its fiscal 2012 third quarter ended December 31, 2011.
The Company reported record net revenues of $112.8 million for the fiscal 2012 third quarter, an increase of 23 percent when compared with $91.9 million for the fiscal 2011 third quarter. Net income for the fiscal 2012 third quarter reached a record $21.1 million, up 20 percent versus $17.5 million for the same period a year ago. Fully diluted earnings per share were $0.36 in the third quarter of fiscal 2012, versus $0.30 for the fiscal 2011 third quarter, up 20 percent.
The record fiscal 2012 third quarter results can be attributed to the continued adoption of electronic health records by physicians, medical groups and hospitals. As the momentum continues and more practices transition to electronic-based solutions, Quality Systems is capturing additional market share. We now have entered the second year of the five-year stimulus period, which appears to be the most aggressive in terms of healthcare information technology adoption. Our quarterly results are indicative of the continued acceptance of our innovative solutions throughout the marketplace and across physician practices, small hospitals and dental groups, noted Steven T. Plochocki, Quality Systems chief executive officer.
Quality Systems also announced that the Companys Board of Directors declared a quarterly cash dividend of Seventeen and One-Half Cents ($0.175) per share on the Companys outstanding shares of Common Stock, payable to shareholders of record as of Tuesday, March 20, 2012 with an anticipated distribution date of April 5, 2012. The $0.175 per share cash dividend is consistent with the Companys current policy to pay a regular quarterly dividend on the Companys outstanding shares of Common Stock, subject to Board review and approval.
Quality Systems will host a conference call to discuss its fiscal 2012 third quarter results on Thursday, January 26, 2012 at 10:00 AM ET (7:00 AM PT). All participants should dial 877-941-6010 at least ten minutes prior to the start of the call. International callers should dial 480-629-9772. To hear a live Web simulcast or to listen to the archived webcast following completion of the call, please visit the Companys 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 800-406-7325 or 303-590-3030 and enter reservation identification number 4507957. The replay will be available from approximately 12:00 PM ET on Thursday, January 26, 2012, through 11:59 PM ET on Thursday, February 2, 2012.
A transcript of the conference call will be made available on the Companys website at www.qsii.com.
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, including but not limited to, 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). Risks and uncertainties exist that may cause the results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements are set forth in Part I, Item A of our most recent Annual Report on Form 10-K for the fiscal year ended March 31, 2011, including but not limited to: 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; impact of incentive payments under The American Recovery and Reinvestment Act on sales and the ability of the Company to meet continued certification requirements; 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 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; changes of accounting estimates and assumptions used to prepare the prior periods' financial statements; and general economic conditions. A significant portion of the Company's quarterly sales of software product licenses and computer hardware is concluded in the last month of a 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 INCOME
|Three Months Ended December 31,||Nine Months Ended December 31,|
|Software, hardware and supplies||$||35,074||$||29,675||$||95,845||$||74,806|
|Implementation and training services||6,555||4,262||18,121||13,069|
|Electronic data interchange services||12,101||10,360||36,178||30,266|
|Revenue cycle management and related services||11,147||11,496||34,170||33,443|
|Maintenance, EDI, RCM and other services||71,136||57,934||206,875||168,380|
|Cost of revenue:|
|Software, hardware and supplies||4,622||5,667||13,423||16,575|
|Implementation and training services||5,994||3,677||15,119||10,142|
Total cost of system sales
|Electronic data interchange services||7,890||6,908||23,816||20,390|
|Revenue cycle management and related services||8,405||8,715||25,687||25,082|
|Total cost of maintenance, EDI, RCM and other services||27,718||22,985||80,740||67,599|
|Total cost of revenue||38,334||32,329||109,282||94,316|
|Selling, general and administrative||33,096||27,958||94,651||79,025|
|Research and development costs||8,277||5,358||22,462||16,046|
|Amortization of acquired intangible assets||543||445||1,545||1,237|
|Total operating expenses||41,916||33,761||118,658||96,308|
|Income from operations||32,515||25,781||92,901||65,631|
|Other income (expense), net||(218||)||-||(400||)||59|
|Income before provision for income taxes||32,352||25,836||92,713||65,934|
|Provision for income taxes||11,247||8,305||32,129||22,881|
|Net income per share:|
|Weighted average shares outstanding:|
|Dividends declared per common share||$||0.175||$||0.15||$||0.525||$||0.45|
QUALITY SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
|December 31,||March 31,|
|Cash and cash equivalents||$||129,046||$||116,617|
|Accounts receivable, net||159,555||139,772|
|Income taxes receivable||5,053||-|
|Deferred income tax assets, net||10,466||10,397|
|Other current assets||8,664||8,768|
|Total current assets||319,230||282,394|
|Equipment and improvements, net||16,234||12,599|
|Capitalized software costs, net||18,733||15,150|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Accrued compensation and related benefits||10,996||10,247|
|Income taxes payable||-||3,530|
|Other current liabilities||18,209||29,316|
Total current liabilities
|Deferred revenue, net of current||1,127||1,099|
|Deferred income tax liabilities, net||11,384||11,384|
|Other noncurrent liabilities||5,536||2,409|
|Commitments and contingencies|
|$0.01 par value; authorized 100,000 shares; issued and outstanding 58,901 and 58,068 shares at December 31, 2011 and March 31, 2011, respectively||589||580|
|Additional paid-in capital||161,007||132,969|
|Total shareholders' equity||282,474||224,670|
|Total liabilities and shareholders' equity||$||441,856||$||378,686|
Quality Systems, Inc.
Paul Holt, CFO, 949-255-2600
Susan J. Lewis, 303-804-0494
Source: Quality Systems, Inc.Copyright Business Wire 2012