TUSTIN,
Calif. — (BUSINESS WIRE) — May 23, 2002 — Quality Systems,
Inc. (NASDAQ: QSII) today announced the results of operations for its fiscal 2002 fourth quarter and year ended March 31, 2002. The Company posted net revenue of $12.0 million for the fourth quarter, an increase of 12% over the $10.7 million generated during the comparable quarter of the prior year. The Company reported net income of $1,494,000, an increase of 27% over net income of $1,174,000 earned during the prior year's fourth quarter. Fully diluted earnings per share totaled $0.24 in the quarter, an increase of 26% over the fully diluted $0.19 per share recorded in the same quarter last year.
Revenue for fiscal
year ended March 31, 2002 was $44,422,000, an increase of 11% over fiscal 2001's
revenue of $39,936,000. Net income for fiscal 2002 was $5,268,000, an increase of 50%
over fiscal 2001's net income of $3,509,000. Fully diluted earnings per share increased
to $0.84 in FY 2002, a 47% increase over the $0.57 earned in FY 2001.
The revenue, net income,
and earnings per share results achieved in the quarter and the fiscal year were all records
for the company. Results in the fourth quarter were driven by strong performance in the
company's NextGen Healthcare Information Systems subsidiary.
Quality Systems, Inc. will hold
a conference call to discuss fourth-quarter and year-end financial results today, Thursday,
May 23, 2002 at 1:00 p.m. EDT (10:00 a.m. PDT). To participate in the conference call,
please dial the following number five to ten minutes prior to the scheduled conference call
time: 877/586-7724. There is no pass code required for this call. If you are unable to participate
in the call at this time, a replay will be available on Thursday, May 23 at 1:00 p.m. PDT, through
Thursday, May 30 at 1:00 p.m. PDT; call 800/642-1687 and enter the conference ID number 4135730.
International callers may access the replay by dialing 706/645-9291 and entering the same conference
ID number.
A transcript of the conference
call will be made available on the QSII Web site (www.qsii.com). 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
Three Months Ended Twelve Months Ended
March 31, March 31,
2002 2001 2002 2001
---------- --------- --------- ---------
Net Revenues:
Sales of computer systems,
Upgrades and supplies 6,358,000 5,516,000 22,520,000 19,935,000
Maintenance and other
services 5,615,000 5,162,000 21,902,000 20,001,000
---------- --------- --------- ---------
11,973,000 10,678,000 44,422,000 39,936,000
Cost of Products and
Services 5,072,000 4,429,000 19,253,000 17,283,000
---------- --------- --------- ---------
Gross Profit 6,901,000 6,249,000 25,169,000 22,653,000
Selling, General and
Administrative Expenses 3,510,000 3,525,000 13,068,000 13,585,000
Research and Development
Costs 1,079,000 1,092,000 4,243,000 4,081,000
---------- --------- --------- ---------
Income from Operations 2,312,000 1,632,000 7,858,000 4,987,000
Investment Income 100,000 274,000 643,000 1,032,000
---------- --------- --------- ---------
Income before Provision for
Income Taxes 2,412,000 1,906,000 8,501,000 6,019,000
Provision for Income
Taxes 918,000 732,000 3,233,000 2,510,000
---------- --------- --------- ---------
Net Income $1,494,000 $1,174,000 5,268,000 3,509,000
========== ========= ========= =========
Income per Share -- Basic $ 0.25 $ 0.20 0.87 0.57
========== ========= ========= =========
Income per Share --
Diluted $ 0.24 0.19 0.84 0.57
========== ========= ========= =========
Weighted average number
of shares outstanding
-- Basic 6,078,000 5,983,000 6,025,000 6,130,000
========== ========= ========= =========
Weighted average number
of shares outstanding
-- Diluted 6,320,000 6,099,000 6,240,000 6,203,000
========== ========= ========= =========
Quality Systems, Inc.
Consolidated Balance Sheets
(in thousands)
ASSETS
March 31, March 31,
2002 2001
---------------- -----------------
Current Assets:
Cash and cash equivalents $25,443 $18,471
Short-term investments 255 258
Accounts receivable, net 13,695 13,335
Inventories 1,118 1,030
Other current assets 2,579 2,098
---------------- -----------------
Total current assets 43,090 35,192
Equipment and Improvements, net 1,578 1,819
Capitalized Software Costs, net 2,103 1,769
Deferred Tax Asset 2,960 2,960
Goodwill, net 1,772 1,772
Other Assets 1,419 1,371
---------------- -----------------
Total assets $52,922 $44,883
================ =================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $2,657 $1,829
Deferred service revenue 6,155 5,595
Other current liabilities 4,159 3,572
---------------- -----------------
Total liabilities 12,971 10,996
Commitments and Contingencies
Shareholders' Equity:
Common stock, $0.01 par value,
20,000 shares authorized, 6,105
and 5,987 shares issued
and outstanding, respectively 61 60
Additional paid-in capital 34,575 33,780
Retained Earnings 5,315 47
---------------- -----------------
Total shareholders' equity 39,951 33,887
Total liabilities and
Shareholders' equity $52,922 $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.
