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June
14 , 2000
Quality
Systems Reports Fiscal 2000 and Fourth-Quarter Results
TUSTIN,
Calif. — Quality Systems Inc. (Nasdaq:QSII - news) today
announced the results of operations for its fiscal year ended
March 31, 2000.
For
the 2000 fiscal year, the company posted net revenues of $36.4
million, up from $33.8 million for the prior fiscal year. The
company's net income rose 328.8% in fiscal 2000, to $2,504,000,
or $0.40 per basic and diluted share, compared with net income
of $584,000, or $0.09 per basic and diluted share, for the prior
year.
For
the fourth quarter ended March 31, 2000, revenues decreased to
$8.8 million as compared with $9.8 million in the fourth quarter
of the previous year. Net income for the company declined 27.3%
to $549,000, or $0.09 per basic and diluted share, for the current
fourth quarter, compared with net income of $755,000, or $0.12
per basic and diluted share, for the comparable quarter of the
previous year.
Compared
with the third quarter of fiscal 2000, fourth-quarter revenues
were unchanged at $8.8 million. Net income improved to $549,000,
or $0.09 per basic and diluted share, for the fourth quarter vs.
net income of $475,000, or $0.08 per basic and diluted share,
for the preceding quarter.
Quality
Systems Interim Chief Executive Officer and President Patrick
Cline commented: "We are pleased with our areas of improvement
for the fiscal year, but we recognize that opportunities for continued
improvement remain. In fiscal 2000, our gross margin as a percentage
of revenue improved to 54.9% compared to 53.2% for the prior year.
"We
also continue to grow our recurring maintenance and other services
revenue, which increased 14.6% to $17,126,000 from $14,941,000
for fiscal 1999. We look forward to the challenges that lie ahead,
and remain firmly committed to our customers, shareholders and
employees."
Quality
Systems Inc. is a developer and provider of computer-based practice
management and electronic medical records systems for medical
and dental group practices.
This
news release contains forward-looking statements, including those
related to revenue and net income, that involve a number of risks
and uncertainties. Among the important factors that could cause
actual results to differ materially from those indicated by such
forward-looking statements are volume and timing of systems sales
and installations; length of sales cycles and installation process;
seasonal patterns of sales and customer buying behavior; the development
by competitors of new or superior technologies; delays in product
development; undetected errors or bugs in software; product liability;
changing economic, political or regulatory influences on the health-care
industry; changes in product pricing policies; competitive pressures;
possible regulation of the company's software by the U.S. Food
and Drug Administration; 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 as applied to the company as of the date
hereof.
Quality Systems Inc.
Consolidated Statements of Operations and Comprehensive Income
Three Months Ended Year Ended
March 31, March 31,
2000 1999 2000 1999
Net Revenues:
Sales of computer
systems, upgrades
and supplies $ 4,064,000 $ 5,537,000 $19,247,000 $18,875,000
Maintenance and
other services 4,690,000 4,296,000 17,126,000 14,941,000
8,754,000 9,833,000 36,373,000 33,816,000
Cost of Products
and Services 3,848,000 4,324,000 16,395,000 15,834,000
Gross Profit 4,906,000 5,509,000 19,978,000 17,982,000
Selling, General
and
Administrative
Expenses 3,301,000 3,423,000 12,645,000 13,495,000
Research and
Development
Costs 907,000 973,000 3,726,000 3,603,000
Income from
Operations 698,000 1,113,000 3,607,000 884,000
Investment
Income 228,000 153,000 759,000 413,000
Income before
Provision for
Income Taxes 926,000 1,266,000 4,366,000 1,297,000
Provision for
Income Taxes 377,000 511,000 1,862,000 713,000
Net Income $ 549,000 $ 755,000 $ 2,504,000 $ 584,000
Income per Share
- Basic $ 0.09 $ 0.12 $ 0.40 $ 0.09
Income per Share
- Diluted $ 0.09 $ 0.12 $ 0.40 $ 0.09
Weighted average
number of shares
outstanding
- Basic 6,199,000 6,218,000 6,208,000 6,176,000
Weighted average
number of shares
outstanding
- Diluted 6,355,000 6,218,000 6,261,000 6,185,000
Quality Systems Inc.
Consolidated Balance Sheets
(in thousands)
ASSETS
March 31, March 31,
2000 1999
Current Assets:
Cash and cash equivalents $ 15,926 $ 14,196
Short-term investments 243 245
Accounts receivable, net 13,710 12,488
Inventories 1,010 772
Other current assets 2,496 1,019
Total current assets 33,385 28,720
Equipment and Improvements, net 1,797 1,783
Capitalized Software Costs, net 1,984 2,144
Deferred Tax Asset 3,042 3,254
Excess of Cost Over Net Assets
of Acquired Business, net 2,112 2,452
Other Assets 1,816 1,865
Total assets $ 44,136 $ 40,218
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 1,246 $ 1,813
Deferred service revenue 5,691 4,484
Other current liabilities 5,116 4,257
Total liabilities 12,053 10,554
Commitments and Contingencies
Shareholders' Equity:
Common stock, $0.01 par value, 20,000 shares
authorized, 6,201 and 6,214 shares issued
and outstanding, respectively 62 62
Additional paid-in capital 35,483 35,568
Accumulated deficit (3,462) (5,966)
Total shareholders' equity 32,083 29,664
Total liabilities and
shareholders' equity $ 44,136 $ 40,218
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