April
07, 1999
Quality
Systems Announces Integration of Subsidiaries; Patrick Cline Named
President of Newly Created Combined Division
TUSTIN,
Calif. Wednesday announced the full integration of its
two subsidiaries, Clinitec International, Inc. and MicroMed Healthcare
Information Systems, Inc.
The
two entities will be combined into one operating division under
Quality Systems in order to streamline operations and take advantage
of synergies between the two entities. At the same time, the company
is making additional changes to develop further efficiencies in
certain company-wide functions that will be managed from the corporate
headquarters in Tustin, California.
The
merging of the two operations is effective immediately. Patrick
Cline, currently President of Clinitec, an Executive Vice President
of Quality Systems, and a member of Quality Systems' Board of
Directors, has been appointed President of the new operating division,
which will continue to carry the name MicroMed Healthcare Information
Systems, Inc. Steve Puckett, currently President of the MicroMed
subsidiary and an Executive Vice President of Quality Systems,
has been named Senior Vice President andProduct Manager for the
division's software development efforts. The new division will
continue to develop, implement, and support its Windows(R)-based
practice management and NextGen(R) electronic medical records
systems.
Patrick
Cline commented on the merger, saying, "This culminates our process
of developing operational synergies between the two subsidiaries.
We have already successfully merged the sales teams, sales management,
and marketing departments of Clinitec and MicroMed, a process
we completed in January 1999. Consolidating the operational and
development aspects of the businesses is the final step, and one
that should benefit the company greatly, through additional cost
savings; sharing implementation, training and support personnel
across various product lines; and, enhancing uniformity within
our functional areas."
"We
are very pleased to be moving forward with this final stage of
the integration of Clinitec and MicroMed," said Sheldon Razin,
President and Chairman of the Board of Quality Systems. "Just
as the integration of the products led to a whole that was greater
than the sum of its parts, so too we expect the consolidation
of the two entities to lead to a new division that is stronger
and more dynamic than the independent subsidiaries. We are confident
that the new division will thrive under Pat Cline's leadership."
Quality
Systems, Inc. is one of the leading developers and providers of
computer-based practice management and electronic medical records
systems for medical and dental group practices with a customer
base of approximately 500 clients in 45 states, Canada and Saudi
Arabia.
This
press release contains forward-looking statements, including those
relating 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 healthcare
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.