TUSTIN,
Calif. — (BUSINESS WIRE) — January 24, 2002 — Quality Systems,
Inc. (NASDAQ: QSII) today announced the results of operations for its fiscal
2002 third quarter ended December 31, 2001.
For the quarter,
the Company posted record revenues of $11 million. Net income was a record
$1,382,000, which represents an increase of 43% over net income of $966,000
for the comparable quarter of the prior year. Fully diluted earnings per
share was a record $0.22 in the quarter, an increase of 38% over the fully
diluted $0.16 per share earnings recorded in the same quarter last year.
Quarterly results
were driven by record revenues posted by the Company's NextGen Healthcare
Information Systems division and EDI/Connectivity segment, as well as record
operating income at the Company's QSI division.
Quality Systems
is a developer and provider of computer-based practice management and electronic
medical records systems and e-business applications for dental and medical
group practices marketed under the QSI and NextGen product names.
This news
release may contain 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 impact actual results are volume and timing
of systems sales and installations; length of sales cycles and installation
process; the possibility that the products will not achieve market acceptance;
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 in 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.
[financial
highlights follow]
Quality Systems, Inc.
Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
2001 2000 2001 2000
Net Revenues:
Sales of computer systems,
Upgrades and supplies 5,458,000 5,230,000 16,162,000 14,419,000
Maintenance and other services 5,585,000 5,103,000 16,287,000 14,839,000
11,043,000 10,333,000 32,449,000 29,258,000
Cost of Products and Services 4,900,000 4,459,000 14,181,000 12,854,000
Gross Profit 6,143,000 5,874,000 18,268,000 16,404,000
Selling, General and
Administrative Expenses 3,019,000 3,451,000 9,558,000 10,060,000
Research and Development Costs 1,057,000 1,010,000 3,164,000 2,989,000
Income from Operations 2,067,000 1,413,000 5,546,000 3,355,000
Investment Income 147,000 261,000 543,000 758,000
Income before Provision for
Income Taxes 2,214,000 1,674,000 6,089,000 4,113,000
Provision for Income
Taxes 832,000 708,000 2,315,000 1,778,000
Net Income $ 1,382,000 $ 966,000 $ 3,774,000 $ 2,335,000
Income per Share - Basic $ 0.23 $ 0.16 $ 0.63 $ 0.38
Income per Share - Diluted $ 0.22 $ 0.16 $ 0.61 $ 0.37
Weighted average number
of shares outstanding - Basic 6,026,000 6,119,000 6,007,000 6,179,000
Weighted average number
of shares outstanding - Diluted 6,224,000 6,162,000 6,191,000 6,245,000
Quality Systems, Inc.
Consolidated Balance Sheets
(in thousands)
ASSETS
December 31, December 31,
2001 2000
Current Assets:
Cash and cash equivalents $ 23,397 $ 18,471
Short-term investments 275 258
Accounts receivable, net 12,866 13,335
Inventories 772 1,030
Other current assets 2,415 2,098
Total current assets 39,725 35,192
Equipment and Improvements, net 1,550 1,819
Capitalized Software Costs, net 1,972 1,769
Deferred Tax Asset 2,960 2,960
Goodwill 1,772 1,772
Other Assets 1,264 1,371
Total assets $ 49,243 $ 44,883
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 1,178 $ 1,829
Deferred service revenue 6,119 5,595
Other current liabilities 3,924 3,572
Total liabilities 11,221 10,996
Commitments and Contingencies
Shareholders' Equity:
Common stock, $0.01 par value, 20,000 shares
authorized, 6,017 and 5,987 shares issued
and outstanding, respectively 62 60
Additional paid-in capital 34,139 33,780
Retained Earnings 3,821 47
Total shareholders' equity 38,022 33,887
Total liabilities and
Shareholders' equity $ 49,243 $ 44,883
Contact:
Quality Systems Inc., Irvine
Lou Silverman, 949/255-2600
www.qsii.com
or
Coffin Communications Group, Sherman Oaks, Calif.
William F. Coffin/Sean Collins, 818/789-0100
www.coffincg.com.
