Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Sep. 30, 2013 | Oct. 29, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'QUALITY SYSTEMS, INC | ' |
Entity Central Index Key | '0000708818 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 60,125,286 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $72,816 | $105,999 |
Restricted cash | 3,498 | 5,488 |
Marketable securities | 11,489 | 12,012 |
Accounts receivable, net | 139,526 | 148,257 |
Inventories | 996 | 710 |
Income taxes receivable | 4,466 | 0 |
Deferred income taxes, net | 12,180 | 12,140 |
Other current assets | 12,212 | 12,720 |
Total current assets | 257,183 | 297,326 |
Equipment and improvements, net | 23,508 | 21,887 |
Capitalized software costs, net | 49,773 | 39,781 |
Intangibles, net | 49,838 | 27,550 |
Goodwill | 76,219 | 45,761 |
Other assets | 10,810 | 10,750 |
Total assets | 467,331 | 443,055 |
Current liabilities: | ' | ' |
Accounts payable | 8,823 | 11,501 |
Deferred revenue | 66,643 | 65,207 |
Accrued compensation and related benefits | 11,976 | 11,915 |
Income taxes payable | 0 | 1,480 |
Dividends payable | 10,672 | 10,418 |
Other current liabilities | 32,343 | 26,508 |
Total current liabilities | 130,457 | 127,029 |
Deferred revenue, net of current | 1,362 | 1,219 |
Deferred compensation | 4,298 | 3,809 |
Other noncurrent liabilities | 10,710 | 3,949 |
Total liabilities | 146,827 | 136,006 |
Commitments and contingencies (Note 11) | ' | ' |
Shareholders' equity: | ' | ' |
Common stock $0.01 par value; authorized 100,000 shares; issued and outstanding 59,588 and 59,543 shares at June 30, 2013 and March 31, 2013, respectively | 601 | 595 |
Additional paid-in capital | 191,416 | 179,743 |
Accumulated other comprehensive loss | -204 | -11 |
Retained earnings | 128,691 | 126,722 |
Total shareholders' equity | 320,504 | 307,049 |
Total liabilities and shareholders' equity | $467,331 | $443,055 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value (in usd per share) | $0.01 | $0.01 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 60,125 | 59,543 |
Common stock, shares outstanding | 60,125 | 59,543 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Software and hardware | $15,562 | $23,720 | $31,534 | $49,564 |
Implementation and training services | 7,809 | 8,535 | 14,384 | 20,581 |
System sales | 23,371 | 32,255 | 45,918 | 70,145 |
Maintenance | 40,313 | 38,715 | 78,921 | 77,283 |
Electronic data interchange services | 16,545 | 15,024 | 33,237 | 28,847 |
Revenue cycle management and related services | 15,467 | 14,486 | 31,482 | 28,887 |
Other services | 15,385 | 15,648 | 31,052 | 29,262 |
Maintenance, EDI, RCM and other services | 87,710 | 83,873 | 174,692 | 164,279 |
Total revenues | 111,081 | 116,128 | 220,610 | 234,424 |
Cost of revenue: | ' | ' | ' | ' |
Software and hardware | 4,779 | 5,624 | 9,713 | 11,395 |
Implementation and training services | 6,972 | 7,507 | 14,106 | 16,652 |
Total cost of system sales | 11,751 | 13,131 | 23,819 | 28,047 |
Maintenance | 5,262 | 4,741 | 10,564 | 9,552 |
Electronic data interchange services | 10,650 | 9,151 | 21,446 | 18,399 |
Revenue cycle management and related services | 11,007 | 10,556 | 22,408 | 21,426 |
Other services | 9,012 | 8,785 | 17,517 | 17,335 |
Total cost of maintenance, EDI, RCM and other services | 35,931 | 33,233 | 71,935 | 66,712 |
Total cost of revenue | 47,682 | 46,364 | 95,754 | 94,759 |
Gross profit | 63,399 | 69,764 | 124,856 | 139,665 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative | 38,578 | 37,832 | 73,674 | 74,513 |
Research and development costs | 7,615 | 6,272 | 13,229 | 14,848 |
Amortization of acquired intangible assets | 1,260 | 1,316 | 2,454 | 2,453 |
Total operating expenses | 47,453 | 45,420 | 89,357 | 91,814 |
Income from operations | 15,946 | 24,344 | 35,499 | 47,851 |
Interest income | -205 | -62 | -174 | -27 |
Other expense, net | 155 | -220 | 409 | -7 |
Income before provision for income taxes | 15,586 | 24,502 | 34,916 | 47,831 |
Provision for income taxes | 5,465 | 8,811 | 11,850 | 16,643 |
Net income | 10,121 | 15,691 | 23,066 | 31,188 |
Foreign currency translation (net of $0 tax) | -20 | 47 | -193 | -10 |
Comprehensive income | $10,101 | $15,738 | $22,873 | $31,178 |
Net income per share: | ' | ' | ' | ' |
Basic (in usd per share) | $0.17 | $0.26 | $0.39 | $0.53 |
Diluted (in usd per share) | $0.17 | $0.26 | $0.39 | $0.53 |
Weighted-average shares outstanding: | ' | ' | ' | ' |
Basic (in usd per share) | 59,734 | 59,347 | 59,647 | 59,314 |
Diluted (in usd per share) | 59,751 | 59,386 | 59,663 | 59,386 |
Dividends declared per common share | $0.18 | $0.18 | $0.35 | $0.35 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' |
Other comprehensive loss, foreign currency translation, tax | $0 | $0 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Poseidon Group [Member] | Poseidon Group [Member] | Mirth [Member] | Matrix Management Solutions [Member] | Matrix Management Solutions [Member] | |||||
Cash flows from operating activities: | ' | ' | ' | ' | ' | ' | ' | ||
Net income | $23,066 | $31,188 | ' | ' | ' | ' | ' | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' | ' | ' | ' | ||
Depreciation | 3,818 | 3,386 | ' | ' | ' | ' | ' | ||
Amortization of capitalized software costs | 5,303 | 4,879 | ' | ' | ' | ' | ' | ||
Amortization of other intangibles | 4,062 | [1] | 3,810 | [1] | ' | ' | ' | ' | ' |
Provision for bad debts | 3,716 | 3,103 | ' | ' | ' | ' | ' | ||
Share-based compensation | 1,125 | 1,383 | ' | ' | ' | ' | ' | ||
Deferred income tax benefit | 826 | -851 | ' | ' | ' | ' | ' | ||
Excess tax benefit from share-based compensation | -62 | -75 | ' | ' | ' | ' | ' | ||
Change in fair value of contingent consideration | -89 | 856 | ' | ' | ' | ' | ' | ||
Changes in assets and liabilities, net of amounts acquired: | ' | ' | ' | ' | ' | ' | ' | ||
Accounts receivable | 9,298 | -7,736 | ' | ' | ' | ' | ' | ||
Inventories | -242 | -143 | ' | ' | ' | ' | ' | ||
Income taxes receivable | -4,466 | -3,435 | ' | ' | ' | ' | ' | ||
Other current assets | 3,324 | -394 | ' | ' | ' | ' | ' | ||
Other assets | -845 | -1,088 | ' | ' | ' | ' | ' | ||
Accounts payable | -2,816 | 3,677 | ' | ' | ' | ' | ' | ||
Deferred revenue | -4,223 | -15,226 | ' | ' | ' | ' | ' | ||
Accrued compensation and related benefits | 61 | -1,976 | ' | ' | ' | ' | ' | ||
Income taxes payable | -1,899 | -26 | ' | ' | ' | ' | ' | ||
Other current liabilities | 1,818 | 9,677 | ' | ' | ' | ' | ' | ||
Deferred compensation | 489 | -289 | ' | ' | ' | ' | ' | ||
Other noncurrent liabilities | 502 | -1,230 | ' | ' | ' | ' | ' | ||
Net cash provided by operating activities | 42,766 | 29,490 | ' | ' | ' | ' | ' | ||
Cash flows from investing activities: | ' | ' | ' | ' | ' | ' | ' | ||
Additions to capitalized software costs | -15,295 | -14,117 | ' | ' | ' | ' | ' | ||
Additions to equipment and improvements | -4,611 | -4,836 | ' | ' | ' | ' | ' | ||
Purchase of Poseidon and Matrix | ' | ' | 0 | -2,033 | -34,802 | 0 | -5,073 | ||
Net cash used in investing activities | -54,708 | -26,059 | ' | ' | ' | ' | ' | ||
Cash flows from financing activities: | ' | ' | ' | ' | ' | ' | ' | ||
Excess tax benefit from share-based compensation | 62 | 75 | ' | ' | ' | ' | ' | ||
Proceeds from exercise of stock options | 1,535 | 764 | ' | ' | ' | ' | ' | ||
Dividends paid | -20,843 | -20,736 | ' | ' | ' | ' | ' | ||
Payment of contingent consideration related to acquisitions | -1,995 | -935 | ' | ' | ' | ' | ' | ||
Net cash used in financing activities | -21,241 | -20,832 | ' | ' | ' | ' | ' | ||
Net (decrease) increase in cash and cash equivalents | -33,183 | -17,401 | ' | ' | ' | ' | ' | ||
Cash and cash equivalents at beginning of period | 105,999 | 134,444 | ' | ' | ' | ' | ' | ||
Cash and cash equivalents at end of period | 72,816 | 117,043 | ' | ' | ' | ' | ' | ||
Supplemental disclosures of cash flow information: | ' | ' | ' | ' | ' | ' | ' | ||
Cash paid during the period for income taxes, net of refunds | 17,555 | 20,962 | ' | ' | ' | ' | ' | ||
Effective September 9, 3013 and May 1, 2012 and April 16, 2012 the company acquired Poseidon, Matrix and IntraNexus in transactions summarized as follows: | ' | ' | ' | ' | ' | ' | ' | ||
Cash paid | ' | ' | 0 | -2,033 | -34,802 | 0 | -5,073 | ||
Common Stock issued at fair value | ' | ' | ' | ' | -7,882 | ' | -3,953 | ||
Fair value of contingent consideration | ' | ' | ' | ' | -13,307 | -2,862 | ' | ||
Purchase price holdback | ' | ' | ' | 500 | ' | ' | 853 | ||
Fair value of non-compete agreement (liability) | ' | ' | ' | ' | ' | ' | 1,100 | ||
Liabilities assumed | ' | ' | ' | 18 | 6,549 | ' | 746 | ||
Fair value of assets acquired | ' | ' | ' | $2,551 | $62,540 | ' | $14,587 | ||
[1] | Amortization of the customer relationships and the trade name & contracts intangible assets is included in operating expenses and amortization of the software technology intangible assets is included in cost of revenue for software and hardware. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||
Summary of Significant Accounting Policies | ||||||||||||||||
Principles of Consolidation. The consolidated financial statements include the accounts of Quality Systems, Inc. and its wholly-owned subsidiaries, which consist of NextGen Healthcare Information Systems, LLC (“NextGen”), NextGen RCM Services, LLC, Opus Healthcare Solutions, LLC (“Opus”), ViaTrack Systems, LLC (“ViaTrack”), Matrix Management Solutions, LLC ("Matrix"), QSI Management, LLC and Quality Systems India Healthcare Private Limited (“QSIH”) (collectively, the “Company”). Mirth Corporation (“Mirth”) is included in the consolidated financial statements from the date of acquisition (September 9, 2013). All intercompany accounts and transactions have been eliminated. | ||||||||||||||||
Basis of Presentation. The accompanying unaudited consolidated financial statements as of September 30, 2013 and for the three and six months ended September 30, 2013 and 2012 have been prepared in accordance with the requirements of Form 10-Q and Article 10 of the Securities and Exchange Commission Regulation S-X and therefore do not include all information and notes which would be presented were such consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These consolidated financial statements should be read in conjunction with the audited consolidated financial statements presented in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2013. Amounts related to disclosures of March 31, 2013 balances within these interim consolidated financial statements were derived from the aforementioned Form 10-K. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments which are necessary for a fair presentation of the results of operations and cash flows for the periods presented. The results of operations for such interim periods are not necessarily indicative of results of operations to be expected for the full year. | ||||||||||||||||
References to amounts in the consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified. | ||||||||||||||||
Revenue Recognition. The Company generates revenue from the sale of licensing rights to its software products directly to end-users and value-added resellers ("VARs"). The Company also generates revenue from sales of hardware and third-party software, implementation, training, electronic data interchange (“EDI”), post-contract support (maintenance) and other services, including revenue cycle management (“RCM”), performed for clients who license its products. | ||||||||||||||||
A typical system contract contains multiple elements of the above items. Revenue earned on software arrangements involving multiple elements is allocated to each element based on the relative fair values of those elements. The fair value of an element is based on vendor-specific objective evidence (“VSOE”). The Company limits its assessment of VSOE for each element to either the price charged when the same element is sold separately or the price established by management having the relevant authority to do so for an element not yet sold separately. VSOE calculations are updated and reviewed quarterly or annually depending on the nature of the product or service. The Company generally establishes VSOE for the related undelivered elements based on the bell-shaped curve method. VSOE is established on maintenance for the Company's largest clients based on stated renewal rates only if the rate is determined to be substantive and falls within the Company's customary pricing practices. | ||||||||||||||||
When evidence of fair value exists for the delivered and undelivered elements of a transaction, discounts for individual elements are aggregated and the total discount is allocated to the individual elements in proportion to the elements' fair value relative to the total contract fair value. | ||||||||||||||||
When evidence of fair value exists for the undelivered elements only, the residual method is used. Under the residual method, the Company defers revenue related to the undelivered elements in a system sale based on VSOE of fair value of each of the undelivered elements and allocates the remainder of the contract price net of all discounts to revenue recognized from the delivered elements. If VSOE of fair value of any undelivered element does not exist, all revenue is deferred until VSOE of fair value of the undelivered element is established or the element has been delivered. | ||||||||||||||||
Provided that fees are fixed or determinable and collection is considered probable, revenue from licensing rights and sales of hardware and third-party software is generally recognized upon physical or electronic shipment and transfer of title. In certain transactions where collection risk is high, the revenue is deferred until collection occurs or becomes probable. If the fee is not fixed or determinable, then the revenue recognized in each period (subject to application of other revenue recognition criteria) will be the lesser of the aggregate amounts due and payable or the amount of the arrangement fee that would have been recognized if the fees were being recognized using the residual method. Fees which are considered fixed or determinable at the inception of the Company's arrangements must be negotiated at the outset of an arrangement and generally be based on the specific volume of products to be delivered without being subject to change based on variable pricing mechanisms such as the number of units copied or distributed or the expected number of users. | ||||||||||||||||
Revenue from implementation and training services is recognized as the corresponding services are performed. Maintenance revenue is recognized ratably over the contractual maintenance period. | ||||||||||||||||
Contract accounting is applied where services include significant modification, development or customization. | ||||||||||||||||
The Company ensures that the following criteria have been met prior to recognition of revenue: | ||||||||||||||||
▪ | the price is fixed or determinable; | |||||||||||||||
▪ | the customer is obligated to pay and there are no contingencies surrounding the obligation or the payment; | |||||||||||||||
▪ | the customer's obligation would not change in the event of theft or damage to the product; | |||||||||||||||
▪ | the customer has economic substance; | |||||||||||||||
▪ | the amount of returns can be reasonably estimated; and | |||||||||||||||
▪ | the Company does not have significant obligations for future performance in order to bring about resale of the product by the customer. | |||||||||||||||
The Company has historically offered short-term rights of return in certain sales arrangements. If the Company is able to estimate returns for these types of arrangements, revenue is recognized, net of an allowance for returns, and these arrangements are recorded in the consolidated financial statements. If the Company is unable to estimate returns for these types of arrangements, revenue is not recognized in the consolidated financial statements until the rights of return expire, provided also, that all other criteria for revenue recognition have been met. | ||||||||||||||||
Revenue related to sales arrangements that include hosting or the right to use software stored on the Company's hardware is recognized in accordance to the same revenue recognition criteria discussed above only if the customer has the contractual right to take possession of the software without incurring a significant penalty and it is feasible for the customer to either host the software themselves or through another third-party. Otherwise, the arrangement is accounted for as a service contract in which the entire arrangement is deferred and recognized over the period that the hosting services are being performed. | ||||||||||||||||
From time to time, the Company offers future purchase discounts on its products and services as part of its sales arrangements. Such discounts that are incremental to the range of discounts reflected in the pricing of the other elements of the arrangement, that are incremental to the range of discounts typically given in comparable transactions, and that are significant, are treated as an additional element of the contract to be deferred. Amounts deferred related to future purchase options are not recognized until either the customer exercises the discount offer or the offer expires. | ||||||||||||||||
RCM service revenue is derived from services fees, which include amounts charged for ongoing billing and other related services, and are generally billed to the customer as a percentage of total collections. The Company does not recognize revenue for services fees until these collections are made, as the services fees are not fixed or determinable until such time. | ||||||||||||||||
Revenue is divided into two categories, “system sales” and “maintenance, EDI, RCM and other services.” Revenue in the system sales category includes software license fees, third-party hardware and software and implementation and training services related to purchase of the Company's software systems. Revenue in the maintenance, EDI, RCM and other services category includes maintenance, EDI, RCM services, consulting services, annual third-party license fees, hosting services, Software as a Service ("SaaS") fees and other services revenue. | ||||||||||||||||
Goodwill. The Company tests goodwill for impairment annually during its first fiscal quarter, referred to as the annual test date. The Company will also test for impairment between annual test dates if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is performed at a reporting-unit level, which is defined as an operating segment or one level below an operating segment (referred to as a component). A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. An impairment loss would generally be recognized when the carrying amount of the reporting unit's net assets exceeds the estimated fair value of the reporting unit. | ||||||||||||||||
As of September 30, 2013, the Company has not identified any events or circumstances that would require an interim goodwill impairment test. During the quarter ended December 31, 2012, the Company recorded an impairment charge of $17,400 related to the Hospital Solutions Division as a result of deteriorating financial performance. The impairment charge reduced the book value of goodwill associated with the division to $4,342. See Note 4. | ||||||||||||||||
Share-Based Compensation. The following table shows total share-based compensation expense included in the consolidated statements of comprehensive income for the three and six months ended September 30, 2013 and 2012: | ||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of revenue | $ | 89 | $ | 73 | $ | 163 | $ | 149 | ||||||||
Research and development costs | 89 | 74 | 131 | 133 | ||||||||||||
Selling, general and administrative | 406 | 272 | 831 | 1,101 | ||||||||||||
Total share-based compensation | 584 | 419 | 1,125 | 1,383 | ||||||||||||
Income tax benefit | (184 | ) | (127 | ) | (352 | ) | (447 | ) | ||||||||
Decrease in net income | $ | 400 | $ | 292 | $ | 773 | $ | 936 | ||||||||
Recent Accounting Standards. New accounting pronouncements implemented by the Company during the current year or requiring implementation in future periods are discussed below or in the notes, where applicable. | ||||||||||||||||
In February 2013, the FASB issued Accounting Standards Update No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02). The new standard requires an entity to provide information about the amounts reclassified out of Accumulated Other Comprehensive Income by component. The adoption of this guidance had no impact on the Company's consolidated financial statements, but may have an effect on the required disclosures for future reporting periods. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at September 30, 2013 and March 31, 2013: | ||||||||||||||||
Balance at | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||||
September 30, | ||||||||||||||||
2013 | ||||||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents (1) | $ | 72,816 | $ | 72,816 | $ | — | $ | — | ||||||||
Restricted cash | 3,498 | 3,498 | — | — | ||||||||||||
Marketable securities (2) | 11,489 | 11,489 | — | — | ||||||||||||
$ | 87,803 | $ | 87,803 | $ | — | $ | — | |||||||||
LIABILITIES | ||||||||||||||||
Contingent consideration related to acquisitions | $ | 16,559 | $ | — | $ | — | $ | 16,559 | ||||||||
$ | 16,559 | $ | — | $ | — | $ | 16,559 | |||||||||
Balance at | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||||
March 31, | ||||||||||||||||
2013 | ||||||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents (1) | $ | 105,999 | $ | 105,999 | $ | — | $ | — | ||||||||
Restricted cash | 5,488 | 5,488 | — | — | ||||||||||||
Marketable securities (2) | 12,012 | 12,012 | — | — | ||||||||||||
$ | 123,499 | $ | 123,499 | $ | — | $ | — | |||||||||
LIABILITIES | ||||||||||||||||
Contingent consideration related to acquisitions | $ | 5,336 | $ | — | $ | — | $ | 5,336 | ||||||||
$ | 5,336 | $ | — | $ | — | $ | 5,336 | |||||||||
___________________________________ | ||||||||||||||||
(1) Cash equivalents consists of money market funds. | ||||||||||||||||
(2) Marketable securities consist of fixed-income securities. | ||||||||||||||||
The Company’s contingent consideration liability is accounted for at fair value on a recurring basis and is adjusted to fair value when the carrying value differs from fair value. Key assumptions include discount rates and probability-adjusted achievement of revenue and strategic targets that are not observable in the market. The categorization of the framework used to measure fair value of the contingent consideration liability is considered Level 3 due to the subjective nature of the unobservable inputs used. The fair values of the contingent consideration liability for Sphere Health Systems, Inc. ("Sphere"), IntraNexus, Inc. ("IntraNexus"), Matrix, and Mirth were estimated based on the probability of achieving certain business milestones and management’s forecast of expected revenues. | ||||||||||||||||
The following table presents activity in the Company’s financial assets and liabilities measured at fair value using significant unobservable inputs (Level 3), as of and for the six months ended September 30, 2013: | ||||||||||||||||
Total Liabilities | ||||||||||||||||
Balance as of April 1, 2013 | $ | 5,336 | ||||||||||||||
Acquisitions (Note 3) | 13,307 | |||||||||||||||
Earnout payments | (1,995 | ) | ||||||||||||||
Fair value adjustments | (89 | ) | ||||||||||||||
Balance as of September 30, 2013 | $ | 16,559 | ||||||||||||||
Non-Recurring Fair Value Measurements | ||||||||||||||||
The Company has certain assets, including goodwill and other intangible assets, which are measured at fair value on a non-recurring basis and are adjusted to fair value only if an impairment charge is recognized. The categorization of the framework used to measure fair value of the assets is considered Level 3 due to the subjective nature of the unobservable inputs used. During the six months ended September 30, 2013, there were no adjustments to fair value of such assets, except for the intangible assets acquired from Mirth as discussed further below. |
Business_Combinations
Business Combinations | 6 Months Ended | |||
Sep. 30, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Business Combinations | ' | |||
Business Combinations | ||||
On September 9, 2013, the Company acquired 100% of the outstanding capital stock of Mirth, a global leader in health information technology that helps clients achieve interoperability. The acquisition will enhance the Company’s current enterprise interoperability initiatives and broaden its accountable and collaborative care, population health, disease management and clinical data exchange offerings. The preliminary Mirth purchase price totaled $55,991, which includes share-based contingent consideration with an estimated fair value of $13,307 payable over a three year period subject to achievement of certain strategic milestones. The goodwill arising from the acquisition of Mirth represents the opportunity for the Company to sell Mirth-powered health information technology solutions as a complement to its other products as well as other expected market participant synergies going forward and is expected to be deductible for income tax purposes over a period of 15 years. Mirth operates under the NextGen Division. | ||||
The Company accounted for the Mirth acquisition as a purchase business combination. The preliminary purchase price was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The fair values of acquired assets and liabilities assumed represent management’s estimate of fair value and are considered preliminary. The estimated fair values may be further adjusted as additional information obtained about facts and circumstances that existed as of the acquisition date becomes available during the twelve month period after the acquisition date (“measurement period”). Any changes in the values allocated to tangible and identified intangible assets acquired and liabilities assumed during the measurement period may result in material adjustments to goodwill. | ||||
The estimated fair value of the acquired tangible and intangible assets and liabilities assumed were determined using multiple valuation approaches depending on the type of tangible or intangible asset acquired, including but not limited to the income approach, the excess earnings method and the relief from royalty method approach. | ||||
The total preliminary purchase price for the Mirth acquisition during the six months ended September 30, 2013 is summarized as follows: | ||||
Mirth | ||||
Cash paid | $ | 34,802 | ||
Common stock issued at fair value | 7,882 | |||
Contingent consideration | 13,307 | |||
Total purchase price | $ | 55,991 | ||
The following table summarizes the preliminary purchase price allocation for the Mirth acquisition: | ||||
Mirth | ||||
Fair value of the net tangible assets acquired and liabilities assumed: | ||||
Current assets (including accounts receivable of $4,283) | $ | 4,905 | ||
Equipment and improvements | 828 | |||
Accounts payable and accrued liabilities | (748 | ) | ||
Deferred revenues | (5,802 | ) | ||
Total net tangible assets acquired and liabilities assumed | (817 | ) | ||
Fair value of identifiable intangible assets acquired: | ||||
Trade name | 1,350 | |||
Customer relationships | 2,800 | |||
Software technology | 22,200 | |||
Goodwill | 30,458 | |||
Total identifiable intangible assets acquired | 56,808 | |||
Total purchase price | $ | 55,991 | ||
The pro forma effects of the Mirth acquisition would not have been material to the Company’s results of operations and are therefore not presented. |
Goodwill
Goodwill | 6 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Goodwill | ' | |||||||||||
Goodwill | ||||||||||||
The Company does not amortize goodwill as it has been determined to have an indefinite useful life. | ||||||||||||
Goodwill by division consists of the following: | ||||||||||||
March 31, | Acquisitions | September 30, | ||||||||||
2013 | 2013 | |||||||||||
QSI Dental Division (1) | $ | 7,289 | $ | — | $ | 7,289 | ||||||
NextGen Division | 1,840 | 30,458 | 32,298 | |||||||||
Hospital Solutions Division | 4,342 | — | 4,342 | |||||||||
RCM Services Division | 32,290 | — | 32,290 | |||||||||
Total goodwill | $ | 45,761 | $ | 30,458 | $ | 76,219 | ||||||
(1) QSI Dental Division goodwill is presented on a basis consistent with that of the management reporting structures within QSI. For the purposes of testing goodwill for impairment annually and as otherwise may be required, however, the QSI Dental Division goodwill is allocated to all business units that derive cash flows from the products associated with the acquired goodwill. For all periods presented in this report, the allocation resulted in substantially all of such goodwill being ascribed to the NextGen Division. | ||||||||||||
Approximately 65% of the goodwill balance as of September 30, 2013 is expected to be deductible for income tax purposes over the periods prescribed by the Internal Revenue Code ("IRC"). |
Intangible_Assets
Intangible Assets | 6 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Intangible Assets | ' | |||||||||||||||
Intangible Assets | ||||||||||||||||
In connection with the Mirth acquisition, the Company recorded $26,350 of intangible assets related to trade name, customer relationships and software technology. The Company is amortizing the trade name and customer relationships over five years and the software technology over seven years. The weighted average amortization period for the total amount of intangible assets acquired is 6.7 years. | ||||||||||||||||
Approximately 75% of the acquired intangible assets are expected to be deductible for income tax purposes over the periods prescribed by the IRC. | ||||||||||||||||
The Company’s definite-lived intangible assets, other than capitalized software development costs, are summarized as follows: | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
Customer Relationships | Trade Name & Contracts | Software Technology | Total | |||||||||||||
Gross carrying amount | $ | 25,956 | $ | 3,368 | $ | 42,709 | $ | 72,033 | ||||||||
Accumulated amortization | (12,177 | ) | (1,295 | ) | (8,723 | ) | (22,195 | ) | ||||||||
Net intangible assets | $ | 13,779 | $ | 2,073 | $ | 33,986 | $ | 49,838 | ||||||||
March 31, 2013 | ||||||||||||||||
Customer Relationships | Trade Name & Contracts | Software Technology | Total | |||||||||||||
Gross carrying amount | $ | 23,156 | $ | 2,018 | $ | 20,509 | $ | 45,683 | ||||||||
Accumulated amortization | (10,028 | ) | (1,112 | ) | (6,993 | ) | (18,133 | ) | ||||||||
Net intangible assets | $ | 13,128 | $ | 906 | $ | 13,516 | $ | 27,550 | ||||||||
Activity related to the intangible assets for the six months ended September 30, 2013 and 2012 is summarized as follows: | ||||||||||||||||
Customer Relationships | Trade Name & Contracts | Software Technology | Total | |||||||||||||
Balance as of April 1, 2013 | $ | 13,128 | $ | 906 | $ | 13,516 | $ | 27,550 | ||||||||
Acquisition | 2,800 | 1,350 | 22,200 | 26,350 | ||||||||||||
Amortization (1) | (2,149 | ) | (183 | ) | (1,730 | ) | (4,062 | ) | ||||||||
Balance as of September 30, 2013 | $ | 13,779 | $ | 2,073 | $ | 33,986 | $ | 49,838 | ||||||||
Customer Relationships | Trade Name & Contracts | Software Technology | Total | |||||||||||||
Balance as of April 1, 2012 | $ | 7,805 | $ | 162 | $ | 15,292 | $ | 23,259 | ||||||||
Acquisition | 9,450 | 1,250 | 1,150 | 11,850 | ||||||||||||
Amortization (1) | (2,020 | ) | (330 | ) | (1,460 | ) | (3,810 | ) | ||||||||
Balance as of September 30, 2012 | $ | 15,235 | $ | 1,082 | $ | 14,982 | $ | 31,299 | ||||||||
_____________________________ | ||||||||||||||||
(1) Amortization of the customer relationships and the trade name & contracts intangible assets is included in operating expenses and amortization of the software technology intangible assets is included in cost of revenue for software and hardware. | ||||||||||||||||
The following table represents the remaining estimated amortization of definite-lived intangible assets as of September 30, 2013: | ||||||||||||||||
For the year ended March 31, | ||||||||||||||||
2014 (remaining six months) | $ | 5,668 | ||||||||||||||
2015 | 10,337 | |||||||||||||||
2016 | 10,000 | |||||||||||||||
2017 | 9,230 | |||||||||||||||
2018 and beyond | 14,603 | |||||||||||||||
Total | $ | 49,838 | ||||||||||||||
Capitalized_Software_Costs
Capitalized Software Costs | 6 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Research and Development [Abstract] | ' | |||||||
Capitalized Software Costs | ' | |||||||
Capitalized Software Costs | ||||||||
The Company’s capitalized software development costs are summarized as follows: | ||||||||
September 30, | March 31, 2013 | |||||||
2013 | ||||||||
Gross carrying amount | $ | 109,971 | $ | 94,676 | ||||
Accumulated amortization | (60,198 | ) | (54,895 | ) | ||||
Net capitalized software costs | $ | 49,773 | $ | 39,781 | ||||
Activity related to net capitalized software costs for the six months ended September 30, 2013 and 2012 is summarized as follows: | ||||||||
2013 | 2012 | |||||||
Balance as of April 1 | $ | 39,781 | $ | 19,994 | ||||
Capitalized | 15,295 | 14,117 | ||||||
Amortization | (5,303 | ) | (4,879 | ) | ||||
Balance as of September 30 | $ | 49,773 | $ | 29,232 | ||||
The following table presents the remaining estimated amortization of capitalized software costs as of September 30, 2013. The estimated amortization is comprised of (i) amortization of released products and (ii) the expected amortization for products that are not yet available for sale based on their estimated economic lives and projected general release dates. | ||||||||
For the year ended March 31, | ||||||||
2014 (remaining six months) | $ | 8,000 | ||||||
2015 | 16,000 | |||||||
2016 | 14,100 | |||||||
2017 | 9,300 | |||||||
2018 and beyond | 2,373 | |||||||
Total | $ | 49,773 | ||||||
Composition_of_Certain_Financi
Composition of Certain Financial Statement Captions | 6 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
Composition of Certain Financial Statement Captions | ' | |||||||
Composition of Certain Financial Statement Captions | ||||||||
Accounts receivable include amounts related to maintenance and services that were billed but not yet rendered at each period end. Undelivered maintenance and services are included as a component of the deferred revenue balance on the accompanying consolidated balance sheets. | ||||||||
September 30, | March 31, | |||||||
2013 | 2013 | |||||||
Accounts receivable, gross | $ | 151,738 | $ | 160,080 | ||||
Allowance for doubtful accounts | (12,212 | ) | (11,823 | ) | ||||
Accounts receivable, net | $ | 139,526 | $ | 148,257 | ||||
Inventories are summarized as follows: | ||||||||
September 30, | March 31, | |||||||
2013 | 2013 | |||||||
Computer systems and components | $ | 996 | $ | 710 | ||||
Inventories | $ | 996 | $ | 710 | ||||
Equipment and improvements are summarized as follows: | ||||||||
September 30, | March 31, | |||||||
2013 | 2013 | |||||||
Computer equipment | $ | 34,899 | $ | 31,633 | ||||
Furniture and fixtures | 8,846 | 8,416 | ||||||
Leasehold improvements | 8,868 | 7,125 | ||||||
52,613 | 47,174 | |||||||
Accumulated depreciation and amortization | (29,105 | ) | (25,287 | ) | ||||
Equipment and improvements, net | $ | 23,508 | $ | 21,887 | ||||
Current and non-current deferred revenue are summarized as follows: | ||||||||
September 30, | March 31, | |||||||
2013 | 2013 | |||||||
Maintenance | $ | 14,750 | $ | 12,085 | ||||
Implementation services | 34,691 | 36,899 | ||||||
Annual license services | 9,983 | 9,906 | ||||||
Undelivered software, subscriptions and other | 7,219 | 6,317 | ||||||
Deferred revenue | $ | 66,643 | $ | 65,207 | ||||
Deferred revenue, net of current | $ | 1,362 | $ | 1,219 | ||||
Accrued compensation and related benefits are summarized as follows: | ||||||||
September 30, | March 31, | |||||||
2013 | 2013 | |||||||
Payroll, bonus and commission | $ | 3,270 | $ | 3,842 | ||||
Vacation | 8,706 | 8,073 | ||||||
Accrued compensation and related benefits | $ | 11,976 | $ | 11,915 | ||||
Other current and non-current liabilities are summarized as follows: | ||||||||
September 30, | March 31, | |||||||
2013 | 2013 | |||||||
Contingent consideration and other liabilities related to acquisitions | $ | 11,333 | $ | 8,426 | ||||
Users group meeting deposits | 3,963 | — | ||||||
Care services liabilities | 3,498 | 5,488 | ||||||
Accrued EDI expense | 3,014 | 1,452 | ||||||
Accrued Consulting | 1,512 | 2,602 | ||||||
Accrued royalties | 1,352 | 1,331 | ||||||
Self insurance reserve | 1,321 | 1,336 | ||||||
Deferred rent | 823 | 689 | ||||||
Sales tax payable | 660 | 869 | ||||||
Accrued travel | 456 | 384 | ||||||
Outside commission payable | 315 | 461 | ||||||
Customer deposits | 75 | 262 | ||||||
Other accrued expenses | 4,021 | 3,208 | ||||||
Other current liabilities | $ | 32,343 | $ | 26,508 | ||||
Contingent consideration and other liabilities related to acquisitions | $ | 6,789 | $ | 1,382 | ||||
Deferred rent | 3,921 | 2,448 | ||||||
Other liabilities | — | 119 | ||||||
Other non-current liabilities | $ | 10,710 | $ | 3,949 | ||||
Income_Tax
Income Tax | 6 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax | ' |
Income Tax | |
The provision for income taxes for the three months ended September 30, 2013 and 2012 was approximately $5.5 million and $8.8 million, respectively. The effective tax rates were 35.1% and 36.0% for the three months ended September 30, 2013 and 2012, respectively. The effective rate for the three months ended September 30, 2013 decreased as compared to the same prior year period due to a net benefit from the federal research and development tax credit and an increase benefit in qualified production activities deduction. The federal research and development tax credit statute expired on December 31, 2011, and in January 2013, was retroactively enacted through December 31, 2013. | |
The provision for income taxes for the six months ended September 30, 2013 and 2012 was approximately $11.9 million and $16.6 million, respectively. The effective tax rates were 33.9% and 34.8% for the six months ended September 30, 2013 and 2012, respectively. The effective rate for the six months ended September 30, 2013 decreased as compared to the same prior year period due to a net benefit from the federal research and development tax credit and an increase benefit in qualified production activities deduction. The federal research and development tax credit statute expired on December 31, 2011, and in January 2013, was retroactively enacted through December 31, 2013. | |
Uncertain tax positions | |
As of September 30, 2013, the Company had recorded a liability of $1.2 million for unrecognized tax benefits related to various federal, state and local income tax matters. If recognized, this amount would reduce the Company’s effective tax rate. The tax liability for the six months ended September 30, 2013 increased from the same prior year period by $0.6 million due to additional local income tax contingent liability and certain tax positions related to acquired companies. | |
The Company is no longer subject to U.S. federal income tax examinations for tax years before 2012. With few exceptions, the Company is no longer subject to state income tax examinations for tax years before 2008. The Company does not anticipate that total unrecognized tax benefits will significantly change due to the settlement of audits or the expiration of statute of limitations within the next twelve months. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share | ' | |||||||||||||||
Earnings per Share | ||||||||||||||||
The Company provides presentation of “basic” and “diluted” earnings per share (“EPS”). Shares discussed below are in thousands. | ||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income | $ | 10,121 | $ | 15,691 | $ | 23,066 | $ | 31,188 | ||||||||
Basic net income per share: | ||||||||||||||||
Weighted-average shares outstanding — Basic | 59,734 | 59,347 | 59,647 | 59,314 | ||||||||||||
Basic net income per common share | $ | 0.17 | $ | 0.26 | $ | 0.39 | $ | 0.53 | ||||||||
Net income | $ | 10,121 | $ | 15,691 | $ | 23,066 | $ | 31,188 | ||||||||
Diluted net income per share: | ||||||||||||||||
Weighted-average shares outstanding — Basic | 59,734 | 59,347 | 59,647 | 59,314 | ||||||||||||
Effect of potentially dilutive securities | 17 | 39 | 16 | 72 | ||||||||||||
Weighted-average shares outstanding — Diluted | 59,751 | 59,386 | 59,663 | 59,386 | ||||||||||||
Diluted net income per common share | $ | 0.17 | $ | 0.26 | $ | 0.39 | $ | 0.53 | ||||||||
The computation of diluted net income per share does not include 1,397 and 1,306 options to acquire shares of common stock for the three and six months ended September 30, 2013, respectively, because their inclusion would have an anti-dilutive effect on net income per share. | ||||||||||||||||
The computation of diluted net income per share does not include 1,205 and 1,024 options to acquire shares of common stock for the three and six months ended September 30, 2012, respectively, because their inclusion would have an anti-dilutive effect on net income per share. |
ShareBased_Awards
Share-Based Awards | 6 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Share-Based Awards | ' | |||||||||||||
Share-Based Awards | ||||||||||||||
Employee Stock Option Plans | ||||||||||||||
In September 1998, the Company’s shareholders approved a stock option plan (the “1998 Plan”) under which 8,000,000 shares of common stock were reserved for the issuance of options. The 1998 Plan provides that employees, directors and consultants of the Company may, at the discretion of the Board of Directors or a duly designated compensation committee, be granted options to purchase shares of common stock. The exercise price of each option granted was determined by the Board of Directors at the date of grant, and options under the 1998 Plan expire no later than 10 years from the grant date. Options granted will generally become exercisable in accordance with the terms of the agreement pursuant to which they were granted. Certain option grants to directors became exercisable three months from the date of grant. Upon an acquisition of the Company by merger or asset sale, each outstanding option may be subject to accelerated vesting under certain circumstances. The 1998 Plan terminated on December 31, 2007. As of September 30, 2013, there were 20,000 outstanding options related to the 1998 Plan. | ||||||||||||||
In October 2005, the Company’s shareholders approved a stock option and incentive plan (the “2005 Plan”) under which 4,800,000 shares of common stock were reserved for the issuance of awards, including stock options, incentive stock options and non-qualified stock options, stock appreciation rights, restricted stock, unrestricted stock, restricted stock units, performance shares, performance units (including performance options) and other share-based awards. The 2005 Plan provides that employees, directors and consultants of the Company may, at the discretion of the Board of Directors or a duly designated compensation committee, be granted awards to acquire shares of common stock. The exercise price of each option award shall be determined by the Board of Directors at the date of grant in accordance with the terms of the 2005 Plan, and under the 2005 Plan awards expire no later than 10 years from the grant date. Options granted will generally become exercisable in accordance with the terms of the agreement pursuant to which they were granted. Upon an acquisition of the Company by merger or asset sale, each outstanding option may be subject to accelerated vesting under certain circumstances. The 2005 Plan terminates on May 25, 2015, unless terminated earlier by the Board of Directors. As of September 30, 2013, there were 1,397,409 outstanding options and 2,617,727 shares available for future grant related to the 2005 Plan. | ||||||||||||||
A summary of stock option transactions during the six months ended September 30, 2013 follows: | ||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | |||||||||||
Shares | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | (in thousands) | ||||||||||||
per Share | Life (years) | |||||||||||||
Outstanding, April 1, 2013 | 1,159,183 | $ | 30.54 | 5.5 | ||||||||||
Granted | 469,000 | 18.76 | 7.7 | |||||||||||
Exercised | (79,214 | ) | 19.38 | 0.1 | $ | 186 | ||||||||
Forfeited/Canceled | (131,560 | ) | 31.68 | 5.4 | ||||||||||
Outstanding, September 30, 2013 | 1,417,409 | $ | 27.59 | 6.2 | $ | 1,562 | ||||||||
Vested and expected to vest, September 30, 2013 | 1,329,729 | $ | 27.68 | 6.2 | $ | 1,435 | ||||||||
Exercisable, September 30, 2013 | 364,669 | $ | 31.46 | 4.5 | $ | 33 | ||||||||
The Company utilizes the Black-Scholes valuation model for estimating the fair value of share-based compensation with the following assumptions: | ||||||||||||||
Six Months Ended September 30, 2013 | Six Months Ended September 30, 2012 | |||||||||||||
Expected life | 4.9 years | 5.0 years | ||||||||||||
Expected volatility | 43.4% - 43.7% | 41.3% - 45.0% | ||||||||||||
Expected dividends | 3.1% - 3.9% | 2.4% - 3.8% | ||||||||||||
Risk-free rate | 1.0% - 1.5% | 0.7% - 0.8% | ||||||||||||
The weighted-average grant date fair value of stock options granted during the six months ended September 30, 2013 and 2012 was $5.19 and $8.41 per share, respectively. | ||||||||||||||
The Company issues new shares to satisfy option exercises. Based on historical experience of option cancellations, the Company has estimated an annualized forfeiture rate of 8.3% and 5.8% for employee options for the six months ended September 30, 2013 and 2012, respectively, and 0.0% for director options for the six months ended September 30, 2013 and 2012. Forfeiture rates are adjusted over the requisite service period when actual forfeitures differ, or are expected to differ, from the estimate. | ||||||||||||||
During the six months ended September 30, 2013, a total of 469,000 options to purchase shares of common stock were granted under the 2005 Plan at an exercise price equal to the market price of the Company’s common stock on the date of grant. A summary of stock options granted under the 2005 Plan during fiscal years 2014 and 2013 is as follows: | ||||||||||||||
Number of | Vesting | |||||||||||||
Option Grant Date | Shares | Exercise Price | Terms (1) | Expires | ||||||||||
August 15, 2013 | 85,000 | $ | 20.85 | Five years | August 15, 2021 | |||||||||
July 30, 2013 | 28,000 | $ | 22.59 | Five years | July 30, 2021 | |||||||||
May 29, 2013 | 356,000 | $ | 17.95 | Five years | May 29, 2021 | |||||||||
Fiscal year 2014 option grants | 469,000 | |||||||||||||
January 23, 2013 | 40,000 | $ | 19 | Five years | January 23, 2021 | |||||||||
November 5, 2012 | 5,000 | $ | 17.68 | Five years | November 5, 2020 | |||||||||
September 25, 2012 | 20,000 | $ | 18.42 | Five years | September 25, 2020 | |||||||||
May 24, 2012 | 346,000 | $ | 29.17 | Five years | May 24, 2020 | |||||||||
May 24, 2012 | 30,000 | $ | 29.17 | Four years | May 24, 2020 | |||||||||
May 23, 2012 | 115,500 | $ | 29.45 | Five years | May 23, 2020 | |||||||||
Fiscal year 2013 option grants | 556,500 | |||||||||||||
__________________________________ | ||||||||||||||
(1) Options vest in equal annual installments on each grant anniversary date commencing one year following the date of grant. | ||||||||||||||
Performance-Based Awards | ||||||||||||||
On May 22, 2013, the Board of Directors approved its fiscal year 2014 equity incentive program for certain employees to be awarded options to purchase the Company’s common stock. The maximum number of options available under the equity incentive program plan is 600,000, of which 210,000 are reserved for the Company’s named executive officers and 390,000 for non-executive employees of the Company. Under the program, executive officers are eligible to receive cash bonuses and options based on meeting certain target increases in revenue, EPS and operating income growth for fiscal year 2014. Under the program, non-executive employees are eligible to receive options based on meeting certain target increases in revenue and EPS growth for fiscal year 2014 and the recommendations of senior management. The options shall be issued pursuant to the 2005 Plan, have an exercise price equal to the closing price of the Company’s shares on the date of grant, a term of eight years and vesting in five equal annual installments commencing one year following the date of grant. | ||||||||||||||
Compensation expense associated with the performance based awards under the Company’s equity incentive plans are initially based on the number of options expected to vest after assessing the probability that certain performance criteria will be met. Cumulative adjustments are recorded quarterly to reflect subsequent changes in the estimated outcome of performance-related conditions. The Company utilized the Black-Scholes option valuation model with the assumptions below to calculate stock compensation expense related to the performance based awards. Stock compensation expense recorded for these awards was not significant for the six months ended September 30, 2013 and 2012, respectively. | ||||||||||||||
Six Months Ended September 30, 2013 | Six Months Ended September 30, 2012 | |||||||||||||
Expected life | 4.9 years | 5.0 years | ||||||||||||
Expected volatility | 41.0% - 43.5% | 41.7% - 45.0% | ||||||||||||
Expected dividends | 3.2% - 3.7% | 2.5% - 3.8% | ||||||||||||
Risk-free rate | 1.40% | 0.6% - 0.7% | ||||||||||||
Non-vested stock option award activity, including employee stock options and performance-based awards, during the six months ended September 30, 2013 is summarized as follows: | ||||||||||||||
Non-Vested | Weighted- | |||||||||||||
Number of | Average | |||||||||||||
Shares | Grant-Date | |||||||||||||
Fair Value | ||||||||||||||
per Share | ||||||||||||||
Outstanding, April 1, 2013 | 804,340 | $ | 9.89 | |||||||||||
Granted | 469,000 | 5.19 | ||||||||||||
Vested | (89,040 | ) | 10.08 | |||||||||||
Forfeited/Canceled | (131,560 | ) | 9.84 | |||||||||||
Outstanding, September 30, 2013 | 1,052,740 | $ | 7.77 | |||||||||||
As of September 30, 2013, $6,511 of total unrecognized compensation costs related to stock options is expected to be recognized over a weighted-average period of 3.8 years. This amount does not include the cost of new options that may be granted in future periods or any changes in the Company’s forfeiture percentage. The total fair value of options vested during the six months ended September 30, 2013 and 2012 was $897 and $1,270, respectively. | ||||||||||||||
Restricted Stock | ||||||||||||||
On May 22, 2013, the Board of Directors approved its 2014 Director Compensation Program, pursuant to which each non-employee director is to be awarded shares of restricted stock upon election or re-election to the Board of Directors. Additionally, as part of the 2014 equity incentive program, each executive officer received, as a component of his or her base salary, a grant of restricted stock. The shares of restricted stock are awarded under the 2005 Plan. Such shares of restricted stock vest in two equal, annual installments on the first and second anniversaries of the grant date and are nontransferable for one year following vesting. The weighted-average grant date fair value for the restricted stock was estimated using the market price of the common stock on the date of grant. The fair value of the restricted stock is amortized on a straight-line basis over the vesting period. | ||||||||||||||
The Company recorded compensation expense related to restricted stock of approximately $289 and $324 for the six months ended September 30, 2013 and 2012, respectively. Restricted stock activity for the six months ended September 30, 2013 is summarized as follows: | ||||||||||||||
Number of | Weighted- | |||||||||||||
Shares | Average | |||||||||||||
Grant-Date | ||||||||||||||
Fair Value | ||||||||||||||
per Share | ||||||||||||||
Outstanding, April 1, 2013 | 30,385 | $ | 27.09 | |||||||||||
Granted | 57,324 | 20.75 | ||||||||||||
Vested | (15,635 | ) | 30.38 | |||||||||||
Canceled | (3,000 | ) | 24.81 | |||||||||||
Outstanding, September 30, 2013 | 69,074 | $ | 20.93 | |||||||||||
As of September 30, 2013, $1,294 of total unrecognized compensation costs related to restricted stock is expected to be recognized over a weighted-average period of 1.8 years. This amount does not include the cost of new restricted stock that may be granted in future periods. |
Concentration_of_Credit_Risk
Concentration of Credit Risk | 6 Months Ended |
Sep. 30, 2013 | |
Risks and Uncertainties [Abstract] | ' |
Concentration of Credit Risk | ' |
Concentration of Credit Risk | |
The Company had cash deposits at U.S. banks and financial institutions which exceeded federally insured limits at September 30, 2013. The Company is exposed to credit loss for amounts in excess of insured limits in the event of non-performance by the institutions; however, the Company does not anticipate non-performance by these institutions. |
Commitments_Guarantees_and_Con
Commitments, Guarantees and Contingencies | 6 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments, Guarantees and Contingencies | ' |
Commitments, Guarantees and Contingencies | |
Commitments and Guarantees | |
The Company's software license agreements include a performance guarantee that the Company's software products will substantially operate as described in the applicable program documentation for a period of 365 days after delivery. To date, the Company has not incurred any significant costs associated with its performance guarantee or other related warranties and does not expect to incur significant warranty costs in the future. Therefore, no accrual has been made for potential costs associated with these warranties. Certain arrangements also include performance guarantees related to response time, availability for operational use, and other performance-related guarantees. Certain arrangements also include penalties in the form of maintenance credits should the performance of the software fail to meet the performance guarantees. To date, the Company has not incurred any significant costs associated with these warranties and does not expect to incur significant warranty costs in the future. Therefore, no accrual has been made for potential costs associated with these warranties. | |
The Company has historically offered short-term rights of return in certain sales arrangements. If the Company is able to estimate returns for these types of arrangements and all other criteria for revenue recognition have been met, revenue is recognized and these arrangements are recorded in the consolidated financial statements. If the Company is unable to estimate returns for these types of arrangements, revenue is not recognized in the consolidated financial statements until the rights of return expire, provided also, that all other criteria of revenue recognition have been met. | |
Certain standard sales agreements contain a money back guarantee providing for a performance guarantee that is already part of the software license agreement as well as training and support. The money back guarantee also warrants that the software will remain robust and flexible to allow participation in the federal health incentive programs. The specific elements of the performance guarantee pertain to aspects of the software, which the Company has already tested and confirmed to consistently meet using the Company's existing software without any modifications or enhancements. To date, the Company has not incurred any costs associated with this guarantee and does not expect to incur significant costs in the future. Therefore, no accrual has been made for potential costs associated with this guarantee. | |
The Company's standard sales agreements contain an indemnification provision pursuant to which it shall indemnify, hold harmless, and reimburse the indemnified party for losses suffered or incurred by the indemnified party in connection with any United States patent, any copyright or other intellectual property infringement claim by any third-party with respect to its software. As the Company has not incurred any significant costs to defend lawsuits or settle claims related to these indemnification agreements, the Company believes that its estimated exposure on these agreements is currently minimal. Accordingly, the Company has no liabilities recorded for these indemnification obligations. | |
Hussein Litigation | |
On October 7, 2013, a complaint was filed against the Company and certain of the Company’s officers and directors in the Superior Court of the State of California for the County of Orange, captioned Ahmed D. Hussein v. Sheldon Razin, Steven Plochocki, Quality Systems, Inc. and Does 1-10, inclusive, No. 30-2013-00679600-CU-NP-CJC, by Ahmed Hussein, a former director and significant shareholder of the Company. The complaint generally alleges fraud and deceit, constructive fraud, negligent misrepresentation and breach of fiduciary duty in connection with statements made to the Company’s shareholders regarding the Company’s financial condition and projected future performance. The complaint seeks actual damages, exemplary and punitive damages and costs. The Company believes that plaintiff’s claims are without merit and intends to defend against them vigorously. |
Operating_Segment_Information
Operating Segment Information | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Operating Segment Information | ' | ||||||||||||||||
Operating Segment Information | |||||||||||||||||
The Company has four reportable segments that are evaluated regularly by its chief decision making group (Chief Executive Officer, Chief Financial Officer and Chief Operating Officer) in deciding how to allocate resources and in assessing performance. | |||||||||||||||||
Operating segment data is as follows: | |||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenue: | |||||||||||||||||
QSI Dental Division | $ | 4,904 | $ | 4,846 | $ | 10,055 | $ | 9,800 | |||||||||
NextGen Division | 84,701 | 87,328 | 166,236 | 173,521 | |||||||||||||
Hospital Solutions Division | 4,734 | 8,172 | 10,201 | 19,536 | |||||||||||||
RCM Services Division | 16,742 | 15,782 | 34,118 | 31,567 | |||||||||||||
Consolidated revenue | $ | 111,081 | $ | 116,128 | $ | 220,610 | $ | 234,424 | |||||||||
Operating income (loss): | |||||||||||||||||
QSI Dental Division | $ | 1,254 | $ | 679 | $ | 2,209 | $ | 1,148 | |||||||||
NextGen Division | 30,418 | 33,897 | 59,986 | 62,737 | |||||||||||||
Hospital Solutions Division | (4,237 | ) | (1,165 | ) | (6,831 | ) | 1,182 | ||||||||||
RCM Services Division | 2,686 | 1,789 | 5,526 | 3,642 | |||||||||||||
Unallocated corporate expense | (14,175 | ) | (10,856 | ) | (25,391 | ) | (20,858 | ) | |||||||||
Consolidated operating income | $ | 15,946 | $ | 24,344 | $ | 35,499 | $ | 47,851 | |||||||||
Management evaluates performance based upon stand-alone segment operating income. Because assets by segment are not reported to or used by the Company’s chief decision making group to allocate resources to, or to assess performance, total assets by segment are not disclosed. | |||||||||||||||||
Effective April 1, 2013, the Company reorganized certain overhead related departments to unallocated corporate expense from the operating segments in an effort to centralize shared services functions and to be consistent with the basis in which the decision making group disaggregates financial information. The Company concluded the impact of the reorganization to prior year operating income was not material to the operating segments or unallocated corporate expense and are therefore not restated. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On October 23, 2013, the Board of Directors approved a quarterly cash dividend of $0.175 per share on the Company’s outstanding shares of common stock, payable to shareholders of record as of December 13, 2013 with an expected distribution date on or about January 3, 2014. |
Significant_Accounting_Policie
Significant Accounting Policies (Policies) | 6 Months Ended | |
Sep. 30, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Principles of Consolidation | ' | |
Principles of Consolidation. The consolidated financial statements include the accounts of Quality Systems, Inc. and its wholly-owned subsidiaries, which consist of NextGen Healthcare Information Systems, LLC (“NextGen”), NextGen RCM Services, LLC, Opus Healthcare Solutions, LLC (“Opus”), ViaTrack Systems, LLC (“ViaTrack”), Matrix Management Solutions, LLC ("Matrix"), QSI Management, LLC and Quality Systems India Healthcare Private Limited (“QSIH”) (collectively, the “Company”). Mirth Corporation (“Mirth”) is included in the consolidated financial statements from the date of acquisition (September 9, 2013). All intercompany accounts and transactions have been eliminated. | ||
Basis of Presentation | ' | |
Basis of Presentation. The accompanying unaudited consolidated financial statements as of September 30, 2013 and for the three and six months ended September 30, 2013 and 2012 have been prepared in accordance with the requirements of Form 10-Q and Article 10 of the Securities and Exchange Commission Regulation S-X and therefore do not include all information and notes which would be presented were such consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). These consolidated financial statements should be read in conjunction with the audited consolidated financial statements presented in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2013. Amounts related to disclosures of March 31, 2013 balances within these interim consolidated financial statements were derived from the aforementioned Form 10-K. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments which are necessary for a fair presentation of the results of operations and cash flows for the periods presented. The results of operations for such interim periods are not necessarily indicative of results of operations to be expected for the full year. | ||
References to amounts in the consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified. | ||
Revenue Recognition | ' | |
Revenue Recognition. The Company generates revenue from the sale of licensing rights to its software products directly to end-users and value-added resellers ("VARs"). The Company also generates revenue from sales of hardware and third-party software, implementation, training, electronic data interchange (“EDI”), post-contract support (maintenance) and other services, including revenue cycle management (“RCM”), performed for clients who license its products. | ||
A typical system contract contains multiple elements of the above items. Revenue earned on software arrangements involving multiple elements is allocated to each element based on the relative fair values of those elements. The fair value of an element is based on vendor-specific objective evidence (“VSOE”). The Company limits its assessment of VSOE for each element to either the price charged when the same element is sold separately or the price established by management having the relevant authority to do so for an element not yet sold separately. VSOE calculations are updated and reviewed quarterly or annually depending on the nature of the product or service. The Company generally establishes VSOE for the related undelivered elements based on the bell-shaped curve method. VSOE is established on maintenance for the Company's largest clients based on stated renewal rates only if the rate is determined to be substantive and falls within the Company's customary pricing practices. | ||
When evidence of fair value exists for the delivered and undelivered elements of a transaction, discounts for individual elements are aggregated and the total discount is allocated to the individual elements in proportion to the elements' fair value relative to the total contract fair value. | ||
When evidence of fair value exists for the undelivered elements only, the residual method is used. Under the residual method, the Company defers revenue related to the undelivered elements in a system sale based on VSOE of fair value of each of the undelivered elements and allocates the remainder of the contract price net of all discounts to revenue recognized from the delivered elements. If VSOE of fair value of any undelivered element does not exist, all revenue is deferred until VSOE of fair value of the undelivered element is established or the element has been delivered. | ||
Provided that fees are fixed or determinable and collection is considered probable, revenue from licensing rights and sales of hardware and third-party software is generally recognized upon physical or electronic shipment and transfer of title. In certain transactions where collection risk is high, the revenue is deferred until collection occurs or becomes probable. If the fee is not fixed or determinable, then the revenue recognized in each period (subject to application of other revenue recognition criteria) will be the lesser of the aggregate amounts due and payable or the amount of the arrangement fee that would have been recognized if the fees were being recognized using the residual method. Fees which are considered fixed or determinable at the inception of the Company's arrangements must be negotiated at the outset of an arrangement and generally be based on the specific volume of products to be delivered without being subject to change based on variable pricing mechanisms such as the number of units copied or distributed or the expected number of users. | ||
Revenue from implementation and training services is recognized as the corresponding services are performed. Maintenance revenue is recognized ratably over the contractual maintenance period. | ||
Contract accounting is applied where services include significant modification, development or customization. | ||
The Company ensures that the following criteria have been met prior to recognition of revenue: | ||
▪ | the price is fixed or determinable; | |
▪ | the customer is obligated to pay and there are no contingencies surrounding the obligation or the payment; | |
▪ | the customer's obligation would not change in the event of theft or damage to the product; | |
▪ | the customer has economic substance; | |
▪ | the amount of returns can be reasonably estimated; and | |
▪ | the Company does not have significant obligations for future performance in order to bring about resale of the product by the customer. | |
The Company has historically offered short-term rights of return in certain sales arrangements. If the Company is able to estimate returns for these types of arrangements, revenue is recognized, net of an allowance for returns, and these arrangements are recorded in the consolidated financial statements. If the Company is unable to estimate returns for these types of arrangements, revenue is not recognized in the consolidated financial statements until the rights of return expire, provided also, that all other criteria for revenue recognition have been met. | ||
Revenue related to sales arrangements that include hosting or the right to use software stored on the Company's hardware is recognized in accordance to the same revenue recognition criteria discussed above only if the customer has the contractual right to take possession of the software without incurring a significant penalty and it is feasible for the customer to either host the software themselves or through another third-party. Otherwise, the arrangement is accounted for as a service contract in which the entire arrangement is deferred and recognized over the period that the hosting services are being performed. | ||
From time to time, the Company offers future purchase discounts on its products and services as part of its sales arrangements. Such discounts that are incremental to the range of discounts reflected in the pricing of the other elements of the arrangement, that are incremental to the range of discounts typically given in comparable transactions, and that are significant, are tr | ||
Goodwill | ' | |
Goodwill. The Company tests goodwill for impairment annually during its first fiscal quarter, referred to as the annual test date. The Company will also test for impairment between annual test dates if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is performed at a reporting-unit level, which is defined as an operating segment or one level below an operating segment (referred to as a component). A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. An impairment loss would generally be recognized when the carrying amount of the reporting unit's net assets exceeds the estimated fair value of the reporting unit. | ||
Share-Based Compensation | ' | |
Share-Based Compensation. The following table shows total share-based compensation expense included in the consolidated statements of comprehensive income for the three and six months ended September 30, 2013 and 2012: | ||
Recent Accounting Standards | ' | |
Recent Accounting Standards. New accounting pronouncements implemented by the Company during the current year or requiring implementation in future periods are discussed below or in the notes, where applicable. | ||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||
Stock-based compensation expense | ' | |||||||||||||||
The following table shows total share-based compensation expense included in the consolidated statements of comprehensive income for the three and six months ended September 30, 2013 and 2012: | ||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Costs and expenses: | ||||||||||||||||
Cost of revenue | $ | 89 | $ | 73 | $ | 163 | $ | 149 | ||||||||
Research and development costs | 89 | 74 | 131 | 133 | ||||||||||||
Selling, general and administrative | 406 | 272 | 831 | 1,101 | ||||||||||||
Total share-based compensation | 584 | 419 | 1,125 | 1,383 | ||||||||||||
Income tax benefit | (184 | ) | (127 | ) | (352 | ) | (447 | ) | ||||||||
Decrease in net income | $ | 400 | $ | 292 | $ | 773 | $ | 936 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair value of assets and liabilities on a recurring basis | ' | |||||||||||||||
The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at September 30, 2013 and March 31, 2013: | ||||||||||||||||
Balance at | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||||
September 30, | ||||||||||||||||
2013 | ||||||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents (1) | $ | 72,816 | $ | 72,816 | $ | — | $ | — | ||||||||
Restricted cash | 3,498 | 3,498 | — | — | ||||||||||||
Marketable securities (2) | 11,489 | 11,489 | — | — | ||||||||||||
$ | 87,803 | $ | 87,803 | $ | — | $ | — | |||||||||
LIABILITIES | ||||||||||||||||
Contingent consideration related to acquisitions | $ | 16,559 | $ | — | $ | — | $ | 16,559 | ||||||||
$ | 16,559 | $ | — | $ | — | $ | 16,559 | |||||||||
Balance at | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |||||||||||||
March 31, | ||||||||||||||||
2013 | ||||||||||||||||
ASSETS | ||||||||||||||||
Cash and cash equivalents (1) | $ | 105,999 | $ | 105,999 | $ | — | $ | — | ||||||||
Restricted cash | 5,488 | 5,488 | — | — | ||||||||||||
Marketable securities (2) | 12,012 | 12,012 | — | — | ||||||||||||
$ | 123,499 | $ | 123,499 | $ | — | $ | — | |||||||||
LIABILITIES | ||||||||||||||||
Contingent consideration related to acquisitions | $ | 5,336 | $ | — | $ | — | $ | 5,336 | ||||||||
$ | 5,336 | $ | — | $ | — | $ | 5,336 | |||||||||
___________________________________ | ||||||||||||||||
(1) Cash equivalents consists of money market funds. | ||||||||||||||||
(2) Marketable securities consist of fixed-income securities. | ||||||||||||||||
Company's assets and liabilities measured at fair value using significant unobservable inputs (Level 3) | ' | |||||||||||||||
The following table presents activity in the Company’s financial assets and liabilities measured at fair value using significant unobservable inputs (Level 3), as of and for the six months ended September 30, 2013: | ||||||||||||||||
Total Liabilities | ||||||||||||||||
Balance as of April 1, 2013 | $ | 5,336 | ||||||||||||||
Acquisitions (Note 3) | 13,307 | |||||||||||||||
Earnout payments | (1,995 | ) | ||||||||||||||
Fair value adjustments | (89 | ) | ||||||||||||||
Balance as of September 30, 2013 | $ | 16,559 | ||||||||||||||
Business_Combinations_Tables
Business Combinations (Tables) | 6 Months Ended | |||
Sep. 30, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Preliminary purchase price | ' | |||
The total preliminary purchase price for the Mirth acquisition during the six months ended September 30, 2013 is summarized as follows: | ||||
Mirth | ||||
Cash paid | $ | 34,802 | ||
Common stock issued at fair value | 7,882 | |||
Contingent consideration | 13,307 | |||
Total purchase price | $ | 55,991 | ||
Summary of purchase price allocation | ' | |||
The following table summarizes the preliminary purchase price allocation for the Mirth acquisition: | ||||
Mirth | ||||
Fair value of the net tangible assets acquired and liabilities assumed: | ||||
Current assets (including accounts receivable of $4,283) | $ | 4,905 | ||
Equipment and improvements | 828 | |||
Accounts payable and accrued liabilities | (748 | ) | ||
Deferred revenues | (5,802 | ) | ||
Total net tangible assets acquired and liabilities assumed | (817 | ) | ||
Fair value of identifiable intangible assets acquired: | ||||
Trade name | 1,350 | |||
Customer relationships | 2,800 | |||
Software technology | 22,200 | |||
Goodwill | 30,458 | |||
Total identifiable intangible assets acquired | 56,808 | |||
Total purchase price | $ | 55,991 | ||
Goodwill_Tables
Goodwill (Tables) | 6 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Summary of Goodwill | ' | |||||||||||
Goodwill by division consists of the following: | ||||||||||||
March 31, | Acquisitions | September 30, | ||||||||||
2013 | 2013 | |||||||||||
QSI Dental Division (1) | $ | 7,289 | $ | — | $ | 7,289 | ||||||
NextGen Division | 1,840 | 30,458 | 32,298 | |||||||||
Hospital Solutions Division | 4,342 | — | 4,342 | |||||||||
RCM Services Division | 32,290 | — | 32,290 | |||||||||
Total goodwill | $ | 45,761 | $ | 30,458 | $ | 76,219 | ||||||
(1) QSI Dental Division goodwill is presented on a basis consistent with that of the management reporting structures within QSI. For the purposes of testing goodwill for impairment annually and as otherwise may be required, however, the QSI Dental Division goodwill is allocated to all business units that derive cash flows from the products associated with the acquired goodwill. For all periods presented in this report, the allocation resulted in substantially all of such goodwill being ascribed to the NextGen Division. |
Intangible_Assets_Tables
Intangible Assets (Tables) | 6 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Intangible assets, other than capitalized software development costs | ' | |||||||||||||||
The Company’s definite-lived intangible assets, other than capitalized software development costs, are summarized as follows: | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
Customer Relationships | Trade Name & Contracts | Software Technology | Total | |||||||||||||
Gross carrying amount | $ | 25,956 | $ | 3,368 | $ | 42,709 | $ | 72,033 | ||||||||
Accumulated amortization | (12,177 | ) | (1,295 | ) | (8,723 | ) | (22,195 | ) | ||||||||
Net intangible assets | $ | 13,779 | $ | 2,073 | $ | 33,986 | $ | 49,838 | ||||||||
March 31, 2013 | ||||||||||||||||
Customer Relationships | Trade Name & Contracts | Software Technology | Total | |||||||||||||
Gross carrying amount | $ | 23,156 | $ | 2,018 | $ | 20,509 | $ | 45,683 | ||||||||
Accumulated amortization | (10,028 | ) | (1,112 | ) | (6,993 | ) | (18,133 | ) | ||||||||
Net intangible assets | $ | 13,128 | $ | 906 | $ | 13,516 | $ | 27,550 | ||||||||
Activity related to the intangible assets | ' | |||||||||||||||
Activity related to the intangible assets for the six months ended September 30, 2013 and 2012 is summarized as follows: | ||||||||||||||||
Customer Relationships | Trade Name & Contracts | Software Technology | Total | |||||||||||||
Balance as of April 1, 2013 | $ | 13,128 | $ | 906 | $ | 13,516 | $ | 27,550 | ||||||||
Acquisition | 2,800 | 1,350 | 22,200 | 26,350 | ||||||||||||
Amortization (1) | (2,149 | ) | (183 | ) | (1,730 | ) | (4,062 | ) | ||||||||
Balance as of September 30, 2013 | $ | 13,779 | $ | 2,073 | $ | 33,986 | $ | 49,838 | ||||||||
Customer Relationships | Trade Name & Contracts | Software Technology | Total | |||||||||||||
Balance as of April 1, 2012 | $ | 7,805 | $ | 162 | $ | 15,292 | $ | 23,259 | ||||||||
Acquisition | 9,450 | 1,250 | 1,150 | 11,850 | ||||||||||||
Amortization (1) | (2,020 | ) | (330 | ) | (1,460 | ) | (3,810 | ) | ||||||||
Balance as of September 30, 2012 | $ | 15,235 | $ | 1,082 | $ | 14,982 | $ | 31,299 | ||||||||
_____________________________ | ||||||||||||||||
(1) Amortization of the customer relationships and the trade name & contracts intangible assets is included in operating expenses and amortization of the software technology intangible assets is included in cost of revenue for software and hardware. | ||||||||||||||||
Estimated amortization of intangible assets with determinable lives | ' | |||||||||||||||
The following table represents the remaining estimated amortization of definite-lived intangible assets as of September 30, 2013: | ||||||||||||||||
For the year ended March 31, | ||||||||||||||||
2014 (remaining six months) | $ | 5,668 | ||||||||||||||
2015 | 10,337 | |||||||||||||||
2016 | 10,000 | |||||||||||||||
2017 | 9,230 | |||||||||||||||
2018 and beyond | 14,603 | |||||||||||||||
Total | $ | 49,838 | ||||||||||||||
Capitalized_Software_Costs_Tab
Capitalized Software Costs (Tables) | 6 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Research and Development [Abstract] | ' | |||||||
Capitalized software development costs | ' | |||||||
The Company’s capitalized software development costs are summarized as follows: | ||||||||
September 30, | March 31, 2013 | |||||||
2013 | ||||||||
Gross carrying amount | $ | 109,971 | $ | 94,676 | ||||
Accumulated amortization | (60,198 | ) | (54,895 | ) | ||||
Net capitalized software costs | $ | 49,773 | $ | 39,781 | ||||
Activity related to net capitalized software costs | ' | |||||||
Activity related to net capitalized software costs for the six months ended September 30, 2013 and 2012 is summarized as follows: | ||||||||
2013 | 2012 | |||||||
Balance as of April 1 | $ | 39,781 | $ | 19,994 | ||||
Capitalized | 15,295 | 14,117 | ||||||
Amortization | (5,303 | ) | (4,879 | ) | ||||
Balance as of September 30 | $ | 49,773 | $ | 29,232 | ||||
Estimated amortization of capitalized software costs | ' | |||||||
The following table presents the remaining estimated amortization of capitalized software costs as of September 30, 2013. The estimated amortization is comprised of (i) amortization of released products and (ii) the expected amortization for products that are not yet available for sale based on their estimated economic lives and projected general release dates. | ||||||||
For the year ended March 31, | ||||||||
2014 (remaining six months) | $ | 8,000 | ||||||
2015 | 16,000 | |||||||
2016 | 14,100 | |||||||
2017 | 9,300 | |||||||
2018 and beyond | 2,373 | |||||||
Total | $ | 49,773 | ||||||
Composition_of_Certain_Financi1
Composition of Certain Financial Statement Captions (Tables) | 6 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
Summary of Accounts Receivable | ' | |||||||
September 30, | March 31, | |||||||
2013 | 2013 | |||||||
Accounts receivable, gross | $ | 151,738 | $ | 160,080 | ||||
Allowance for doubtful accounts | (12,212 | ) | (11,823 | ) | ||||
Accounts receivable, net | $ | 139,526 | $ | 148,257 | ||||
Summary of Inventories | ' | |||||||
Inventories are summarized as follows: | ||||||||
September 30, | March 31, | |||||||
2013 | 2013 | |||||||
Computer systems and components | $ | 996 | $ | 710 | ||||
Inventories | $ | 996 | $ | 710 | ||||
Summary of Equipment and improvements | ' | |||||||
Equipment and improvements are summarized as follows: | ||||||||
September 30, | March 31, | |||||||
2013 | 2013 | |||||||
Computer equipment | $ | 34,899 | $ | 31,633 | ||||
Furniture and fixtures | 8,846 | 8,416 | ||||||
Leasehold improvements | 8,868 | 7,125 | ||||||
52,613 | 47,174 | |||||||
Accumulated depreciation and amortization | (29,105 | ) | (25,287 | ) | ||||
Equipment and improvements, net | $ | 23,508 | $ | 21,887 | ||||
Summary of Current and non-current deferred revenue | ' | |||||||
Current and non-current deferred revenue are summarized as follows: | ||||||||
September 30, | March 31, | |||||||
2013 | 2013 | |||||||
Maintenance | $ | 14,750 | $ | 12,085 | ||||
Implementation services | 34,691 | 36,899 | ||||||
Annual license services | 9,983 | 9,906 | ||||||
Undelivered software, subscriptions and other | 7,219 | 6,317 | ||||||
Deferred revenue | $ | 66,643 | $ | 65,207 | ||||
Deferred revenue, net of current | $ | 1,362 | $ | 1,219 | ||||
Summary of Accrued compensation and related benefits | ' | |||||||
Accrued compensation and related benefits are summarized as follows: | ||||||||
September 30, | March 31, | |||||||
2013 | 2013 | |||||||
Payroll, bonus and commission | $ | 3,270 | $ | 3,842 | ||||
Vacation | 8,706 | 8,073 | ||||||
Accrued compensation and related benefits | $ | 11,976 | $ | 11,915 | ||||
Summary of Other current liabilities | ' | |||||||
Other current and non-current liabilities are summarized as follows: | ||||||||
September 30, | March 31, | |||||||
2013 | 2013 | |||||||
Contingent consideration and other liabilities related to acquisitions | $ | 11,333 | $ | 8,426 | ||||
Users group meeting deposits | 3,963 | — | ||||||
Care services liabilities | 3,498 | 5,488 | ||||||
Accrued EDI expense | 3,014 | 1,452 | ||||||
Accrued Consulting | 1,512 | 2,602 | ||||||
Accrued royalties | 1,352 | 1,331 | ||||||
Self insurance reserve | 1,321 | 1,336 | ||||||
Deferred rent | 823 | 689 | ||||||
Sales tax payable | 660 | 869 | ||||||
Accrued travel | 456 | 384 | ||||||
Outside commission payable | 315 | 461 | ||||||
Customer deposits | 75 | 262 | ||||||
Other accrued expenses | 4,021 | 3,208 | ||||||
Other current liabilities | $ | 32,343 | $ | 26,508 | ||||
Contingent consideration and other liabilities related to acquisitions | $ | 6,789 | $ | 1,382 | ||||
Deferred rent | 3,921 | 2,448 | ||||||
Other liabilities | — | 119 | ||||||
Other non-current liabilities | $ | 10,710 | $ | 3,949 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Weighted-average shares outstanding for basic and diluted net income per share | ' | |||||||||||||||
The Company provides presentation of “basic” and “diluted” earnings per share (“EPS”). Shares discussed below are in thousands. | ||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income | $ | 10,121 | $ | 15,691 | $ | 23,066 | $ | 31,188 | ||||||||
Basic net income per share: | ||||||||||||||||
Weighted-average shares outstanding — Basic | 59,734 | 59,347 | 59,647 | 59,314 | ||||||||||||
Basic net income per common share | $ | 0.17 | $ | 0.26 | $ | 0.39 | $ | 0.53 | ||||||||
Net income | $ | 10,121 | $ | 15,691 | $ | 23,066 | $ | 31,188 | ||||||||
Diluted net income per share: | ||||||||||||||||
Weighted-average shares outstanding — Basic | 59,734 | 59,347 | 59,647 | 59,314 | ||||||||||||
Effect of potentially dilutive securities | 17 | 39 | 16 | 72 | ||||||||||||
Weighted-average shares outstanding — Diluted | 59,751 | 59,386 | 59,663 | 59,386 | ||||||||||||
Diluted net income per common share | $ | 0.17 | $ | 0.26 | $ | 0.39 | $ | 0.53 | ||||||||
Share_Based_Awards_Tables
Share Based Awards (Tables) | 6 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Summary of Stock Option Activity | ' | |||||||||||||
A summary of stock option transactions during the six months ended September 30, 2013 follows: | ||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | |||||||||||
Shares | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | (in thousands) | ||||||||||||
per Share | Life (years) | |||||||||||||
Outstanding, April 1, 2013 | 1,159,183 | $ | 30.54 | 5.5 | ||||||||||
Granted | 469,000 | 18.76 | 7.7 | |||||||||||
Exercised | (79,214 | ) | 19.38 | 0.1 | $ | 186 | ||||||||
Forfeited/Canceled | (131,560 | ) | 31.68 | 5.4 | ||||||||||
Outstanding, September 30, 2013 | 1,417,409 | $ | 27.59 | 6.2 | $ | 1,562 | ||||||||
Vested and expected to vest, September 30, 2013 | 1,329,729 | $ | 27.68 | 6.2 | $ | 1,435 | ||||||||
Exercisable, September 30, 2013 | 364,669 | $ | 31.46 | 4.5 | $ | 33 | ||||||||
Schedule of Share Based Compensation Valuation Assumption | ' | |||||||||||||
The Company utilizes the Black-Scholes valuation model for estimating the fair value of share-based compensation with the following assumptions: | ||||||||||||||
Six Months Ended September 30, 2013 | Six Months Ended September 30, 2012 | |||||||||||||
Expected life | 4.9 years | 5.0 years | ||||||||||||
Expected volatility | 43.4% - 43.7% | 41.3% - 45.0% | ||||||||||||
Expected dividends | 3.1% - 3.9% | 2.4% - 3.8% | ||||||||||||
Risk-free rate | 1.0% - 1.5% | 0.7% - 0.8% | ||||||||||||
Summary of stock options granted | ' | |||||||||||||
A summary of stock options granted under the 2005 Plan during fiscal years 2014 and 2013 is as follows: | ||||||||||||||
Number of | Vesting | |||||||||||||
Option Grant Date | Shares | Exercise Price | Terms (1) | Expires | ||||||||||
August 15, 2013 | 85,000 | $ | 20.85 | Five years | August 15, 2021 | |||||||||
July 30, 2013 | 28,000 | $ | 22.59 | Five years | July 30, 2021 | |||||||||
May 29, 2013 | 356,000 | $ | 17.95 | Five years | May 29, 2021 | |||||||||
Fiscal year 2014 option grants | 469,000 | |||||||||||||
January 23, 2013 | 40,000 | $ | 19 | Five years | January 23, 2021 | |||||||||
November 5, 2012 | 5,000 | $ | 17.68 | Five years | November 5, 2020 | |||||||||
September 25, 2012 | 20,000 | $ | 18.42 | Five years | September 25, 2020 | |||||||||
May 24, 2012 | 346,000 | $ | 29.17 | Five years | May 24, 2020 | |||||||||
May 24, 2012 | 30,000 | $ | 29.17 | Four years | May 24, 2020 | |||||||||
May 23, 2012 | 115,500 | $ | 29.45 | Five years | May 23, 2020 | |||||||||
Fiscal year 2013 option grants | 556,500 | |||||||||||||
__________________________________ | ||||||||||||||
(1) Options vest in equal annual installments on each grant anniversary date commencing one year following the date of grant. | ||||||||||||||
Schedule of Performance Based Awards Under Incentive plan | ' | |||||||||||||
The Company utilized the Black-Scholes option valuation model with the assumptions below to calculate stock compensation expense related to the performance based awards. Stock compensation expense recorded for these awards was not significant for the six months ended September 30, 2013 and 2012, respectively. | ||||||||||||||
Six Months Ended September 30, 2013 | Six Months Ended September 30, 2012 | |||||||||||||
Expected life | 4.9 years | 5.0 years | ||||||||||||
Expected volatility | 41.0% - 43.5% | 41.7% - 45.0% | ||||||||||||
Expected dividends | 3.2% - 3.7% | 2.5% - 3.8% | ||||||||||||
Risk-free rate | 1.40% | 0.6% - 0.7% | ||||||||||||
Schedule of Employee Stock Options and Performance Based Awards by Nonvested Stock options | ' | |||||||||||||
Non-vested stock option award activity, including employee stock options and performance-based awards, during the six months ended September 30, 2013 is summarized as follows: | ||||||||||||||
Non-Vested | Weighted- | |||||||||||||
Number of | Average | |||||||||||||
Shares | Grant-Date | |||||||||||||
Fair Value | ||||||||||||||
per Share | ||||||||||||||
Outstanding, April 1, 2013 | 804,340 | $ | 9.89 | |||||||||||
Granted | 469,000 | 5.19 | ||||||||||||
Vested | (89,040 | ) | 10.08 | |||||||||||
Forfeited/Canceled | (131,560 | ) | 9.84 | |||||||||||
Outstanding, September 30, 2013 | 1,052,740 | $ | 7.77 | |||||||||||
Restricted stock units award activity | ' | |||||||||||||
Restricted stock activity for the six months ended September 30, 2013 is summarized as follows: | ||||||||||||||
Number of | Weighted- | |||||||||||||
Shares | Average | |||||||||||||
Grant-Date | ||||||||||||||
Fair Value | ||||||||||||||
per Share | ||||||||||||||
Outstanding, April 1, 2013 | 30,385 | $ | 27.09 | |||||||||||
Granted | 57,324 | 20.75 | ||||||||||||
Vested | (15,635 | ) | 30.38 | |||||||||||
Canceled | (3,000 | ) | 24.81 | |||||||||||
Outstanding, September 30, 2013 | 69,074 | $ | 20.93 | |||||||||||
Operating_Segment_Information_
Operating Segment Information (Tables) | 6 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Operating segment data | ' | ||||||||||||||||
Operating segment data is as follows: | |||||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenue: | |||||||||||||||||
QSI Dental Division | $ | 4,904 | $ | 4,846 | $ | 10,055 | $ | 9,800 | |||||||||
NextGen Division | 84,701 | 87,328 | 166,236 | 173,521 | |||||||||||||
Hospital Solutions Division | 4,734 | 8,172 | 10,201 | 19,536 | |||||||||||||
RCM Services Division | 16,742 | 15,782 | 34,118 | 31,567 | |||||||||||||
Consolidated revenue | $ | 111,081 | $ | 116,128 | $ | 220,610 | $ | 234,424 | |||||||||
Operating income (loss): | |||||||||||||||||
QSI Dental Division | $ | 1,254 | $ | 679 | $ | 2,209 | $ | 1,148 | |||||||||
NextGen Division | 30,418 | 33,897 | 59,986 | 62,737 | |||||||||||||
Hospital Solutions Division | (4,237 | ) | (1,165 | ) | (6,831 | ) | 1,182 | ||||||||||
RCM Services Division | 2,686 | 1,789 | 5,526 | 3,642 | |||||||||||||
Unallocated corporate expense | (14,175 | ) | (10,856 | ) | (25,391 | ) | (20,858 | ) | |||||||||
Consolidated operating income | $ | 15,946 | $ | 24,344 | $ | 35,499 | $ | 47,851 | |||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2013 | Mar. 31, 2013 |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | ' | $76,219 | $45,761 |
Hospital Solutions Division [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill impairment charge | 17,400 | ' | ' |
Goodwill | ' | $4,342 | $4,342 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Costs and expenses: | ' | ' | ' | ' |
Total share-based compensation | $584 | $419 | $1,125 | $1,383 |
Software and hardware charges | -4,779 | -5,624 | -9,713 | -11,395 |
Income tax benefit | -184 | -127 | -352 | -447 |
Decrease in net income | -400 | -292 | -773 | -936 |
Cost of revenue [Member] | ' | ' | ' | ' |
Costs and expenses: | ' | ' | ' | ' |
Total share-based compensation | 89 | 73 | ' | ' |
Software and hardware charges | ' | ' | -163 | -149 |
Research and development costs [Member] | ' | ' | ' | ' |
Costs and expenses: | ' | ' | ' | ' |
Total share-based compensation | 89 | 74 | ' | ' |
Software and hardware charges | ' | ' | -131 | -133 |
Selling, general and administrative [Member] | ' | ' | ' | ' |
Costs and expenses: | ' | ' | ' | ' |
Total share-based compensation | 406 | 272 | ' | ' |
Software and hardware charges | ' | ' | ($831) | ($1,101) |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Sep. 30, 2013 | Mar. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ||
Cash and cash equivalents | $72,816 | [1] | $105,999 | [1] |
Restricted cash | 3,498 | 5,488 | ||
Marketable securities | 11,489 | [2] | 12,012 | [2] |
Total | 87,803 | 123,499 | ||
LIABILITIES | ' | ' | ||
Contingent consideration related to acquisitions | 16,559 | 5,336 | ||
Total | 16,559 | 5,336 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ||
ASSETS | ' | ' | ||
Cash and cash equivalents | 72,816 | [1] | 105,999 | [1] |
Restricted cash | 3,498 | 5,488 | ||
Marketable securities | 11,489 | [2] | 12,012 | [2] |
Total | 87,803 | 123,499 | ||
LIABILITIES | ' | ' | ||
Contingent consideration related to acquisitions | 0 | 0 | ||
Total | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | ' | ' | ||
ASSETS | ' | ' | ||
Cash and cash equivalents | 0 | [1] | 0 | [1] |
Restricted cash | 0 | 0 | ||
Marketable securities | 0 | [2] | 0 | [2] |
Total | 0 | 0 | ||
LIABILITIES | ' | ' | ||
Contingent consideration related to acquisitions | 0 | 0 | ||
Total | 0 | 0 | ||
Unobservable Inputs (Level 3) | ' | ' | ||
ASSETS | ' | ' | ||
Cash and cash equivalents | 0 | [1] | 0 | [1] |
Restricted cash | 0 | 0 | ||
Marketable securities | 0 | [2] | 0 | [2] |
Total | 0 | 0 | ||
LIABILITIES | ' | ' | ||
Contingent consideration related to acquisitions | 16,559 | 5,336 | ||
Total | $16,559 | $5,336 | ||
[1] | Cash equivalents consists of money market funds. | |||
[2] | Marketable securities consist of fixed-income securities. |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | |
Company's assets measured at fair value using significant unobservable inputs (Level 3) | ' | |
Balance at April 1, 2013 | $5,336 | |
Acquisitions | 13,307 | |
Earnout payments | -1,995 | [1] |
Fair value adjustments | -89 | |
Balance at June 30, 2013 | $16,559 | |
[1] | Total LiabilitiesBalance as of April 1, 2013B $5,336Acquisitions (Note 3)B 13,307Earnout paymentsB (1,995)Fair value adjustmentsB (89)Balance as of September 30, 2013B $16,559 |
Fair_Value_Measurement_Details
Fair Value Measurement (Details Textual) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Fair Value Measurements (Textual) | ' |
Fair Value Adjustments | $0 |
Business_Combinations_Details
Business Combinations (Details) (Mirth [Member], USD $) | 0 Months Ended | 6 Months Ended | |
In Thousands, unless otherwise specified | Sep. 09, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
Mirth [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Cash paid | $34,802 | $34,802 | $0 |
Common stock issued at fair value | 7,882 | 7,882 | ' |
Contingent consideration | 13,307 | 13,307 | ' |
Total purchase price | $55,991 | ' | ' |
Business_Combinations_Details_
Business Combinations (Details 1) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 09, 2013 | Sep. 09, 2013 | Sep. 09, 2013 | Sep. 09, 2013 |
In Thousands, unless otherwise specified | Mirth [Member] | Mirth [Member] | Mirth [Member] | Mirth [Member] | ||
Trade Name [Member] | Customer Relationships [Member] | Software Technology [Member] | ||||
Fair value of the net tangible assets acquired and liabilities assumed: | ' | ' | ' | ' | ' | ' |
Current assets (including accounts receivable of $4,283) | ' | ' | $4,905 | ' | ' | ' |
Equipment and improvements | ' | ' | 828 | ' | ' | ' |
Accounts payable and accrued liabilities | ' | ' | -748 | ' | ' | ' |
Deferred revenues | ' | ' | -5,802 | ' | ' | ' |
Total net tangible assets acquired and liabilities assumed | ' | ' | -817 | ' | ' | ' |
Fair value of identifiable intangible assets acquired: | ' | ' | ' | ' | ' | ' |
Identifiable intagnible assets | ' | ' | 26,350 | 1,350 | 2,800 | 22,200 |
Goodwill | 76,219 | 45,761 | 30,458 | ' | ' | ' |
Total identifiable intangible assets acquired | ' | ' | 56,808 | ' | ' | ' |
Total purchase price | ' | ' | 55,991 | ' | ' | ' |
Accounts receivable acquired | ' | ' | $4,283 | ' | ' | ' |
Business_Combinations_Details_1
Business Combinations (Details Textual) (Mirth [Member], USD $) | 0 Months Ended | |
In Thousands, unless otherwise specified | Sep. 09, 2013 | Sep. 30, 2013 |
Mirth [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Total purchase price | $55,991 | ' |
Period for contingent consideration payable | '3 years | ' |
Contingent consideration | $13,307 | $13,307 |
Period for tax benefit | '15 years | ' |
Goodwill_Details
Goodwill (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | |
Goodwill [Roll Forward] | ' | |
Goodwill, beginning of period | $45,761 | |
Acquisitions | 30,458 | |
Goodwill, end of period | 76,219 | |
Percent of goodwill expected to be deductible for income tax purposes | 65.00% | |
QSI Dental Division [Member] | ' | |
Goodwill [Roll Forward] | ' | |
Goodwill, beginning of period | 7,289 | [1] |
Acquisitions | 0 | [1] |
Goodwill, end of period | 7,289 | [1] |
NextGen Division [Member] | ' | |
Goodwill [Roll Forward] | ' | |
Goodwill, beginning of period | 1,840 | |
Acquisitions | 30,458 | |
Goodwill, end of period | 32,298 | |
Hospital Solutions Division [Member] | ' | |
Goodwill [Roll Forward] | ' | |
Goodwill, beginning of period | 4,342 | |
Acquisitions | 0 | |
Goodwill, end of period | 4,342 | |
RCM Services Division [Member] | ' | |
Goodwill [Roll Forward] | ' | |
Goodwill, beginning of period | 32,290 | |
Acquisitions | 0 | |
Goodwill, end of period | $32,290 | |
[1] | QSI Dental Division goodwill is presented on a basis consistent with that of the management reporting structures within QSI. For the purposes of testing goodwill for impairment annually and as otherwise may be required, however, the QSI Dental Division goodwill is allocated to all business units that derive cash flows from the products associated with the acquired goodwill. For all periods presented in this report, the allocation resulted in substantially all of such goodwill being ascribed to the NextGen Division. |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Mar. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Intangible assets, other than capitalized software development costs | ' | ' | ' | ' |
Gross carrying amount | $72,033 | $45,683 | ' | ' |
Accumulated amortization | -22,195 | -18,133 | ' | ' |
Net intangible assets | 49,838 | 27,550 | 31,299 | 23,259 |
Customer Relationships [Member] | ' | ' | ' | ' |
Intangible assets, other than capitalized software development costs | ' | ' | ' | ' |
Gross carrying amount | 25,956 | 23,156 | ' | ' |
Accumulated amortization | -12,177 | -10,028 | ' | ' |
Net intangible assets | 13,779 | 13,128 | 15,235 | 7,805 |
Trade Name & Contracts [Member] | ' | ' | ' | ' |
Intangible assets, other than capitalized software development costs | ' | ' | ' | ' |
Gross carrying amount | 3,368 | 2,018 | ' | ' |
Accumulated amortization | -1,295 | -1,112 | ' | ' |
Net intangible assets | 2,073 | 906 | 1,082 | 162 |
Software Technology [Member] | ' | ' | ' | ' |
Intangible assets, other than capitalized software development costs | ' | ' | ' | ' |
Gross carrying amount | 42,709 | 20,509 | ' | ' |
Accumulated amortization | -8,723 | -6,993 | ' | ' |
Net intangible assets | $33,986 | $13,516 | $14,982 | $15,292 |
Intangible_Assets_Details_1
Intangible Assets (Details 1) (USD $) | 6 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
Activity Related to the intangible assets | ' | ' | ||
Balance at beginning of period | $27,550 | $23,259 | ||
Acquisition | 26,350 | 11,850 | ||
Amortization | -4,062 | [1] | -3,810 | [1] |
Balance at end of period | 49,838 | 31,299 | ||
Customer Relationships [Member] | ' | ' | ||
Activity Related to the intangible assets | ' | ' | ||
Balance at beginning of period | 13,128 | 7,805 | ||
Acquisition | 2,800 | 9,450 | ||
Amortization | -2,149 | [1] | -2,020 | [1] |
Balance at end of period | 13,779 | 15,235 | ||
Trade Name & Contracts [Member] | ' | ' | ||
Activity Related to the intangible assets | ' | ' | ||
Balance at beginning of period | 906 | 162 | ||
Acquisition | 1,350 | 1,250 | ||
Amortization | -183 | [1] | -330 | [1] |
Balance at end of period | 2,073 | 1,082 | ||
Software Technology [Member] | ' | ' | ||
Activity Related to the intangible assets | ' | ' | ||
Balance at beginning of period | 13,516 | 15,292 | ||
Acquisition | 22,200 | 1,150 | ||
Amortization | -1,730 | [1] | -1,460 | [1] |
Balance at end of period | $33,986 | $14,982 | ||
[1] | Amortization of the customer relationships and the trade name & contracts intangible assets is included in operating expenses and amortization of the software technology intangible assets is included in cost of revenue for software and hardware. |
Intangible_Assets_Details_2
Intangible Assets (Details 2) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Mar. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Estimated amortization of intangible assets with determinable lives | ' | ' | ' | ' |
2014 (remaining nine months) | $5,668 | ' | ' | ' |
2015 | 10,337 | ' | ' | ' |
2016 | 10,000 | ' | ' | ' |
2017 | 9,230 | ' | ' | ' |
2018 and beyond | 14,603 | ' | ' | ' |
Net intangible assets | $49,838 | $27,550 | $31,299 | $23,259 |
Intangible_Assets_Details_Text
Intangible Assets (Details Textual) (USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Sep. 09, 2013 |
Customer Relationships [Member] | ' |
Finite Lived Intangible Assets [Line Items] | ' |
Weighted average amortization period | '5 years |
Mirth [Member] | ' |
Finite Lived Intangible Assets [Line Items] | ' |
Identifiable intagnible assets | 26,350 |
Weighted average amortization period | '6 years 8 months 12 days |
Percentage of acquired intangible assets that are expected to be deductible for income tax purposes | 75.00% |
Mirth [Member] | Trade Name [Member] | ' |
Finite Lived Intangible Assets [Line Items] | ' |
Identifiable intagnible assets | 1,350 |
Weighted average amortization period | '5 years |
Mirth [Member] | Customer Relationships [Member] | ' |
Finite Lived Intangible Assets [Line Items] | ' |
Identifiable intagnible assets | 2,800 |
Mirth [Member] | Computer Software, Intangible Asset [Member] | ' |
Finite Lived Intangible Assets [Line Items] | ' |
Identifiable intagnible assets | 22,200 |
Weighted average amortization period | '7 years |
Capitalized_Software_Costs_Det
Capitalized Software Costs (Details) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Mar. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Capitalized software development costs | ' | ' | ' | ' |
Gross carrying amount | $109,971 | $94,676 | ' | ' |
Accumulated amortization | -60,198 | -54,895 | ' | ' |
Net capitalized software costs | $49,773 | $39,781 | $29,232 | $19,994 |
Capitalized_Software_Costs_Det1
Capitalized Software Costs (Details 1) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Activity related to net capitalized software costs | ' | ' |
Balance as of April 1 | $39,781 | $19,994 |
Capitalized | 15,295 | 14,117 |
Amortization | -5,303 | -4,879 |
Balance as of June 30 | 49,773 | 29,232 |
Estimated amortization of capitalized software costs | ' | ' |
2014 (remaining nine months) | 8,000 | ' |
2015 | 16,000 | ' |
2016 | 14,100 | ' |
2017 | 9,300 | ' |
2018 and beyond | 2,373 | ' |
Total | $49,773 | ' |
Composition_of_Certain_Financi2
Composition of Certain Financial Statement Captions (Details) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of Accounts Receivable | ' | ' |
Accounts receivable, gross | $151,738 | $160,080 |
Allowance for doubtful accounts | -12,212 | -11,823 |
Accounts receivable, net | 139,526 | 148,257 |
Summary of Inventories | ' | ' |
Computer systems and components | 996 | 710 |
Inventories | 996 | 710 |
Summary of Equipment and improvements | ' | ' |
Computer equipment | 34,899 | 31,633 |
Furniture and fixtures | 8,846 | 8,416 |
Leasehold improvements | 8,868 | 7,125 |
Equipment and improvements, gross | 52,613 | 47,174 |
Accumulated depreciation | -29,105 | -25,287 |
Equipment and improvements, net | 23,508 | 21,887 |
Summary of Current and non-current deferred revenue | ' | ' |
Maintenance | 14,750 | 12,085 |
Implementation services | 34,691 | 36,899 |
Annual license services | 9,983 | 9,906 |
Undelivered software, subscriptions and other | 7,219 | 6,317 |
Deferred revenue | 66,643 | 65,207 |
Deferred revenue, net of current | 1,362 | 1,219 |
Summary of Accrued compensation and related benefits | ' | ' |
Payroll, bonus and commission | 3,270 | 3,842 |
Vacation | 8,706 | 8,073 |
Accrued compensation and related benefits | 11,976 | 11,915 |
Summary of Other current liabilities | ' | ' |
Contingent consideration and other liabilities related to acquisitions | 11,333 | 8,426 |
Care services liabilities | 3,963 | 0 |
Users Group Meeting (UGM) deposits | 3,498 | 5,488 |
Accrued EDI expense | 3,014 | 1,452 |
Accrued consulting services | 1,512 | 2,602 |
Sales tax payable | 1,352 | 1,331 |
Accrued royalties | 1,321 | 1,336 |
Self insurance reserve | 823 | 689 |
Professional services | 660 | 869 |
Deferred rent | 456 | 384 |
Outside commission payable | 315 | 461 |
Accrued travel | 75 | 262 |
Other accrued expenses | 4,021 | 3,208 |
Other current liabilities | 32,343 | 26,508 |
Contingent consideration and other liabilities related to acquisitions | 6,789 | 1,382 |
Deferred rent | 3,921 | 2,448 |
Other liabilities | ' | 119 |
Other noncurrent liabilities | $10,710 | $3,949 |
Income_Tax_Details
Income Tax (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Taxes (Textual) ) [Abstract] | ' | ' | ' | ' |
Provision for income taxes | $5,465,000 | $8,811,000 | $11,850,000 | $16,643,000 |
Effective tax rate (as a percentage) | 35.10% | 36.00% | 33.90% | 34.80% |
Liability for unrecognized tax benefits | 1,200,000 | ' | 1,200,000 | ' |
Decrease in liability for unrecognized tax benefits due to the expiration of the statute of limitations of prior year tax positions of acquired companies | ' | ' | $600,000 | ' |
Period within which the company does not anticipate total unrecognized tax benefits to change | ' | ' | 'within the next twelve months | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Weighted-average shares outstanding for basic and diluted net income per share | ' | ' | ' | ' |
Net income (in dollars) | $10,121 | $15,691 | $23,066 | $31,188 |
Basic net income per share: | ' | ' | ' | ' |
Weighted-average shares outstanding - Basic | 59,734 | 59,347 | 59,647 | 59,314 |
Basic net income per common share (in usd per share) | $0.17 | $0.26 | $0.39 | $0.53 |
Diluted net income per share: | ' | ' | ' | ' |
Weighted-average shares outstanding - Basic | 59,734 | 59,347 | 59,647 | 59,314 |
Effect of potentially dilutive securities | 17 | 39 | 16 | 72 |
Weighted-average shares outstanding - Diluted | 59,751 | 59,386 | 59,663 | 59,386 |
Diluted net income per common share (in usd per share) | $0.17 | $0.26 | $0.39 | $0.53 |
Earnings_Per_Share_Details_Tex
Earnings Per Share (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earning Per Share (Textual) [Abstract] | ' | ' | ' | ' |
Options excluded from the computation of diluted net income per share | 1,397 | 1,205 | 1,306 | 1,024 |
Share_Based_Awards_Details
Share Based Awards (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Mar. 31, 2013 |
Summary of Stock Option Activity | ' | ' |
Number of Shares Outstanding Beginning Balance | 1,159,183 | ' |
Weighted Average Exercise Price per Share Outstanding Beginning Balance | $30.54 | ' |
Weighted Average Remaining Contractual Life Outstanding Beginning Balance (in years) | '6 years 2 months 12 days | '5 years 6 months |
Number of Share Granted | 469,000 | ' |
Weighted Average Exercise Price per Share Granted | $18.76 | ' |
Weighted Average Remaining Contractual Life Granted (in years) | '7 years 8 months 12 days | ' |
Number of Shares Exercised | -79,214 | ' |
Weighted Average Exercise Price per Share Exercised | $19.38 | ' |
Weighted Average Remaining Contractual Life Exercised (in years) | '1 month 6 days | ' |
Aggregate Intrinsic Value, Exercised | $186 | ' |
Number of Shares Forfeited/Canceled | -131,560 | ' |
Weighted Average Exercise Price per Share Forfeited/Canceled | $31.68 | ' |
Weighted Average Remaining Contractual Life Forfeited/Canceled (in years) | '5 years 4 months 24 days | ' |
Number of Shares Outstanding Ending Balance | 1,417,409 | 1,159,183 |
Weighted Average Exercise Price per Share Outstanding Ending Balance | $27.59 | $30.54 |
Weighted Average Remaining Contractual Life Outstanding Ending Balance (in years) | '6 years 2 months 12 days | '5 years 6 months |
Aggregate Intrinsic Value Outstanding Ending Balance | 1,562 | ' |
Number of Shares Vested and expected to vest | 1,329,729 | ' |
Weighted Average Exercise Price per Share Vested and expected to vest | $27.68 | ' |
Weighted Average Remaining Contractual Life Vested and expected to vest (in years) | '6 years 2 months 12 days | ' |
Aggregate Intrinsic Value Vested and expected to vest | 1,435 | ' |
Number of Shares Exercisable | 364,669 | ' |
Weighted Average Exercise Price per Share Exercisable | $31.46 | ' |
Weighted Average Remaining Contractual Life Exercisable (in years) | '4 years 6 months | ' |
Aggregate Intrinsic Value Exercisable | $33 | ' |
Share_Based_Awards_Details_1
Share Based Awards (Details 1) | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Schedule of Share Based Compensation Valuation Assumption | ' | ' | ' |
Expected life (in years) | ' | '4 years 10 months 24 days | '5 years |
Minimum [Member] | ' | ' | ' |
Schedule of Share Based Compensation Valuation Assumption | ' | ' | ' |
Expected volatility | ' | 43.40% | 41.30% |
Expected Dividends | ' | 3.10% | 2.40% |
Risk-free rate | ' | 1.00% | 0.70% |
Maximum [Member] | ' | ' | ' |
Schedule of Share Based Compensation Valuation Assumption | ' | ' | ' |
Expected volatility | ' | 43.70% | 45.00% |
Expected Dividends | ' | 3.90% | 3.80% |
Risk-free rate | 0.80% | 1.50% | ' |
Share_Based_Awards_Details_2
Share Based Awards (Details 2) (USD $) | 6 Months Ended | |
Sep. 30, 2013 | ||
Summary of stock options granted | ' | |
Number of Share Granted | 469,000 | |
Exercise Price Granted (in usd per share) | $17.68 | |
Exercise of option grants | '5 years | [1] |
Option Grants Expires | 5-Nov-20 | |
Two Thousand Five Stock Options Plan [Member] | August 15, 2013 [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'August 15, 2013 | |
Number of Share Granted | 85,000 | |
Exercise Price Granted (in usd per share) | $20.85 | |
Exercise of option grants | '5 years | [1] |
Option Grants Expires | 15-Aug-21 | |
Two Thousand Five Stock Options Plan [Member] | July 30, 2013 [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'July 30, 2013 | |
Number of Share Granted | 28,000 | |
Exercise Price Granted (in usd per share) | $22.59 | |
Exercise of option grants | '5 years | [1] |
Option Grants Expires | 30-Jul-21 | |
Two Thousand Five Stock Options Plan [Member] | May 29, 2013 [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'May 29, 2013 | |
Number of Share Granted | 356,000 | |
Exercise Price Granted (in usd per share) | $17.95 | |
Exercise of option grants | '5 years | [1] |
Option Grants Expires | 29-May-21 | |
Two Thousand Five Stock Options Plan [Member] | November 5, 2012 [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'November 5, 2012 | |
Number of Share Granted | 5,000 | |
Two Thousand Five Stock Options Plan [Member] | September 25, 2012 [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'September 25, 2012 | |
Number of Share Granted | 20,000 | |
Exercise Price Granted (in usd per share) | $18.42 | |
Exercise of option grants | '5 years | [1] |
Option Grants Expires | 25-Sep-20 | |
Two Thousand Five Stock Options Plan [Member] | Fiscal year 2013 option grants [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'Fiscal year 2014 option grants | |
Number of Share Granted | 469,000 | |
Two Thousand Five Stock Options Plan [Member] | January 23, 2013 [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'January 23, 2013 | |
Number of Share Granted | 40,000 | |
Exercise Price Granted (in usd per share) | $19 | |
Exercise of option grants | '5 years | [1] |
Option Grants Expires | 23-Jan-21 | |
Two Thousand Five Stock Options Plan [Member] | May 24, 2012 [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'May 24, 2012 | |
Number of Share Granted | 346,000 | |
Exercise Price Granted (in usd per share) | $29.17 | |
Exercise of option grants | '5 years | [1] |
Option Grants Expires | 24-May-20 | |
Two Thousand Five Stock Options Plan [Member] | May 24, 2012 (Second Stated Grant) [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'May 24, 2012 | |
Number of Share Granted | 30,000 | |
Exercise Price Granted (in usd per share) | $29.17 | |
Exercise of option grants | '4 years | [1] |
Option Grants Expires | 24-May-20 | |
Two Thousand Five Stock Options Plan [Member] | May 23, 2012 [Member] | ' | |
Summary of stock options granted | ' | |
Option Grant Date | 'May 23, 2012 | |
Number of Share Granted | 115,500 | |
Exercise Price Granted (in usd per share) | $29.45 | |
Exercise of option grants | '5 years | [1] |
Option Grants Expires | 23-May-20 | |
Two Thousand Five Stock Options Plan [Member] | Fiscal year 2013 option grants [Member] | ' | |
Summary of stock options granted | ' | |
Number of Share Granted | 556,500 | |
[1] | Options vest in equal annual installments on each grant anniversary date commencing one year following the date of grant. |
Share_Based_Awards_Details_3
Share Based Awards (Details 3) | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Schedule of Performance Based Awards Under Incentive plan | ' | ' | ' |
Expected life (in years) | ' | '4 years 10 months 24 days | '5 years |
Performance Based Award [Member] | ' | ' | ' |
Schedule of Performance Based Awards Under Incentive plan | ' | ' | ' |
Expected life (in years) | ' | '4 years 10 months 24 days | '5 years |
Risk-free rate | ' | 1.40% | ' |
Minimum [Member] | ' | ' | ' |
Schedule of Performance Based Awards Under Incentive plan | ' | ' | ' |
Expected dividends | ' | 3.10% | 2.40% |
Risk-free rate | ' | 1.00% | 0.70% |
Minimum [Member] | Performance Based Award [Member] | ' | ' | ' |
Schedule of Performance Based Awards Under Incentive plan | ' | ' | ' |
Expected volatility | ' | 41.00% | 41.70% |
Expected dividends | ' | 3.20% | 2.50% |
Risk-free rate | ' | ' | 0.60% |
Maximum [Member] | ' | ' | ' |
Schedule of Performance Based Awards Under Incentive plan | ' | ' | ' |
Expected dividends | ' | 3.90% | 3.80% |
Risk-free rate | 0.80% | 1.50% | ' |
Maximum [Member] | Performance Based Award [Member] | ' | ' | ' |
Schedule of Performance Based Awards Under Incentive plan | ' | ' | ' |
Expected volatility | ' | 43.50% | 45.00% |
Expected dividends | ' | 3.70% | 3.80% |
Risk-free rate | ' | ' | 0.70% |
Share_Based_Awards_Details_4
Share Based Awards (Details 4) (USD $) | 6 Months Ended |
Sep. 30, 2013 | |
Schedule of Employee Stock Options and Performance Based Awards by Nonvested Stock Options | ' |
Non-Vested Number of Shares Outstanding Beginning Balance | 804,340 |
Weighted Average Fair Value Price per Share Outstanding Beginning Balance | $9.89 |
Non-Vested Number of Shares Granted | 469,000 |
Weighted Average Fair Value per Share Price Granted | $5.19 |
Non-Vested Number of Shares Vested | -89,040 |
Weighted Average Fair Value per Share Price Vested | $10.08 |
Non-Vested Number of Shares Forfeited | -131,560 |
Weighted Average Fair Value per Share Price Forfeited | $9.84 |
Non-Vested Number of Share Outstanding Ending Balance | 1,052,740 |
Weighted Average Fair Value per Share Price Outstanding Ending Balance | $7.77 |
Share_Based_Awards_Details_5
Share Based Awards (Details 5) (Restricted Stock Units Award [Member], USD $) | 6 Months Ended |
Sep. 30, 2013 | |
Restricted Stock Units Award [Member] | ' |
Restricted stock units award activity | ' |
Number of Shares Outstanding Beginning Balance | 30,385 |
Weighted average Grant Date Fair value Per Share Outstanding Beginning Balance | $27.09 |
Number of Shares Granted | 57,324 |
Weighted average Grant Date Fair value Per Share Granted | $20.75 |
Number of Shares Vested | -15,635 |
Weighted average Grant Date Fair value Per Share Vested | $30.38 |
Number of Shares Canceled | -3,000 |
Weighted-Average Grant-Date Fair Value per Share Canceled | $24.81 |
Number of Shares Outstanding Ending Balance | 69,074 |
Weighted average Grant Date Fair value Per Share Outstanding Ending Balance | $20.93 |
Share_Based_Awards_Details_Tex
Share Based Awards (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | ||||||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 1998 | Sep. 30, 2013 | Oct. 31, 2005 | 24-May-12 | 24-May-12 | 24-May-12 |
Employee Stock Option [Member] | Restricted Stock Units Award [Member] | Restricted Stock Units Award [Member] | Employee Option [Member] | Employee Option [Member] | Director Options [Member] | Director Options [Member] | Nineteen Ninety Eight Plan [Member] | Nineteen Ninety Eight Plan [Member] | Two Thousand Five Stock Options Plan [Member] | Two Thousand Five Stock Options Plan [Member] | Performance Based Award [Member] | Performance Based Award [Member] | Performance Based Award [Member] | ||||||
Executive Officer [Member] | Non Executive Employees [Member] | ||||||||||||||||||
Share Based Awards (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock reserved | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | ' | 4,800,000 | ' | ' | ' |
Expiration date of options under 1998 Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | '10 years | ' | ' | ' | ' |
Outstanding options under 1998 and 2005 plan | 1,417,409 | ' | 1,417,409 | ' | 1,159,183 | ' | ' | ' | ' | ' | ' | ' | 20,000 | ' | 1,397,409 | ' | ' | ' | ' |
Shares available for future grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,617,727 | ' | 600,000 | ' | ' |
Weighted-average grant date fair value per share of stock options | ' | ' | $5.19 | $8.41 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annualized forfeiture rate for employee options | ' | ' | ' | ' | ' | ' | ' | ' | 8.30% | 5.80% | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' |
Options granted under 2005 plan | ' | ' | 469,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of options available under the equity incentive program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 210,000 | 390,000 |
Total unrecognized compensation costs | ' | ' | ' | ' | ' | $6,511 | $1,294 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock option recognized over weighted average period (in years) | ' | ' | ' | ' | ' | '3 years 9 months 24 days | '1 year 9 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of options vested | 897 | ' | ' | 1,270 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense | $584 | $419 | $1,125 | $1,383 | ' | ' | $289 | $324 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_Guarantees_and_Con1
Commitments Guarantees and Contingencies (Details Textual) | Sep. 30, 2013 |
Commitments Guarantees and Contingencies (Textual) | ' |
Applicable program documentation period | '365 days |
Operating_Segment_Information_1
Operating Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Operating Data | ' | ' | ' | ' |
Revenue | $111,081 | $116,128 | $220,610 | $234,424 |
Operating income | 15,946 | 24,344 | 35,499 | 47,851 |
QSI Dental Division [Member] | ' | ' | ' | ' |
Segment Operating Data | ' | ' | ' | ' |
Revenue | 4,904 | 4,846 | 10,055 | 9,800 |
Operating income | 1,254 | 679 | 2,209 | 1,148 |
NextGen Division [Member] | ' | ' | ' | ' |
Segment Operating Data | ' | ' | ' | ' |
Revenue | 84,701 | 87,328 | 166,236 | 173,521 |
Operating income | 30,418 | 33,897 | 59,986 | 62,737 |
Hospital Solutions Division [Member] | ' | ' | ' | ' |
Segment Operating Data | ' | ' | ' | ' |
Revenue | 4,734 | 8,172 | 10,201 | 19,536 |
Operating income | -4,237 | -1,165 | -6,831 | 1,182 |
RCM Services Division [Member] | ' | ' | ' | ' |
Segment Operating Data | ' | ' | ' | ' |
Revenue | 16,742 | 15,782 | 34,118 | 31,567 |
Operating income | 2,686 | 1,789 | 5,526 | 3,642 |
Unallocated corporate expense [Member] | ' | ' | ' | ' |
Segment Operating Data | ' | ' | ' | ' |
Operating income | ($14,175) | ($10,856) | ($25,391) | ($20,858) |
Subsequent_Events_Details
Subsequent Events (Details) (Dividend Declared [Member], USD $) | Jul. 25, 2012 |
Dividend Declared [Member] | ' |
Subsequent Event [Line Items] | ' |
Cash dividend (in usd per share) | $0.18 |