Exhibit 99.1
For Further Information:
Quality Systems, Inc. CCG Investor Relations
18191 Von Karman Ave, #450 15300 Ventura Blvd., Suite 303
Irvine, CA 92612 Sherman Oaks, CA 91403
www.qsii.com www.ccgir.com
(949) 255-2600 (818) 789-0100
CONTACT: Lou Silverman CONTACT: William F. Coffin, President
President and CEO Sean Collins, Partner
QUALITY SYSTEMS REPORTS FIRST QUARTER RESULTS
IRVINE, Calif.--(BUSINESS WIRE)--July 28, 2003--Quality Systems, Inc.
(NASDAQ:QSII - news) today announced the results of operations for its fiscal
2004 first quarter ended June 30, 2003.
The Company posted net revenues of $16.3 million in the first quarter, an
increase of 33% from $12.3 million for the same quarter last year. The Company
reported net income of $2,277,000, an increase of 40% over net income of
$1,626,000 for the comparable quarter of the prior year. Fully diluted earnings
per share totaled $0.35 in the quarter, an increase of 35% over the fully
diluted $0.26 per share earnings recorded in the same quarter last year.
The revenue, net income, and earnings per share results achieved in the quarter
were records for the Company. Results in the quarter were driven by record
revenue and profits in the Company's NextGen Healthcare Information Systems
division. For the quarter, the Company's NextGen Healthcare division posted
record revenues of $12.2 million, up 51% from the same quarter of the prior
year, and record operating income of $3.4 million, up 62% over the same quarter
of the prior year.
Quality Systems, Inc. will hold a conference call to discuss first-quarter
financial results today, Monday, July 28, 2003 at 1:00 p.m. EDT (10:00 a.m.
PDT). To participate in the call, please call (877) 586-7724 five to ten minutes
prior to the scheduled conference call time. There is no pass code required for
this call. If you are unable to participate in the call at this time, a replay
will be available on Monday, July 28 at 1:00 p.m. PDT, through Monday, August 4
at midnight PDT; call 800-642-1687 and enter the conference ID number 1836697.
A transcript of the conference call will be made available on the QSII Web site
(www.qsii.com). Quality Systems, Inc. and its NextGen Healthcare Information
Systems subsidiary are developers and providers of computer-based practice
management, medical records, and connectivity applications for medical and
dental group practices. Visit www.qsii.com and www.nextgen.com for additional
information.
This news release may contain forward-looking statements, including those
related to revenue and net income, that involve a number of risks and
uncertainties. Among the important factors that could impact actual are volume
and timing of systems sales and installations, length of sales cycles and
installation process; the possibility that the products will not achieve market
acceptance; seasonal patterns of sales and customer buying behavior, the
development by competitors of new or superior technologies, delays in product
development, undetected errors or bugs in software, product liability, changing
economic, political or regulatory influences on the healthcare industry, changes
in product pricing policies, competitive pressures, possible regulation of the
(more)
Quality Systems - First Quarter 2004
For Release July 28, 2003
Page 2
company's software by the U.S. Food and Drug Administration, general economic
conditions, and the risk factors detailed from time to time in Quality Systems'
periodic reports and registration statements filed with the Securities and
Exchange Commission.
[financial highlights follow]
Quality Systems - First Quarter 2004
For Release July 28, 2003
Page 3
Quality Systems, Inc.
Consolidated Statements of Operations and Comprehensive Income (Unaudited)
Three Months Ended
June 30,
2003 2002
----------- -----------
Net Revenues:
Sales of computer systems,
Upgrades and supplies 9,474,000 6,425,000
Maintenance and other services 6,832,000 5,882,000
----------- -----------
16,306,000 12,307,000
Cost of Products and Services 6,610,000 4,920,000
----------- -----------
Gross Profit 9,696,000 7,387,000
Selling, General and
Administrative Expenses 4,740,000 3,673,000
Research and Development Costs 1,366,000 1,135,000
----------- -----------
Income from Operations 3,590,000 2,579,000
Investment Income, net 100,000 104,000
----------- -----------
Income before Provision for
Income Taxes 3,690,000 2,683,000
Provision for Income
Taxes 1,413,000 1,057,000
----------- -----------
Net Income $ 2,277,000 $ 1,626,000
=========== ===========
Income per Share - Basic $ 0.37 $ 0.27
=========== ===========
Income per Share - Diluted $ 0.35 $ 0.26
=========== ===========
Weighted average number
of shares outstanding - Basic 6,157,000 6,106,000
=========== ===========
Weighted average number
of shares outstanding - Diluted 6,466,000 6,332,000
=========== ===========
Quality Systems - First Quarter 2004
For Release July 28, 2003
Page 4
Quality Systems, Inc.
Consolidated Balance Sheets
(in thousands)
ASSETS
June 30, March 31,
2003 (unaudited) 2003
---------------- ---------
Current Assets:
Cash and cash equivalents $ 38,976 $ 36,443
Accounts receivable, net 19,039 17,561
Inventories 1,152 667
Deferred tax assets 2,029 2,029
Other current assets 1,432 2,086
--------- ---------
Total current assets 62,628 58,786
Equipment and Improvements, net 1,734 1,777
Capitalized Software Costs, net 2,760 2,511
Deferred Tax Asset 1,819 1,819
Excess of Cost Over Net Assets
of Acquired Business, net 1,840 1,840
Other Assets 861 869
--------- ---------
Total assets $ 71,642 $ 67,602
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 1,483 $ 2,477
Deferred revenue 13,979 11,699
Other current liabilities 6,298 5,893
--------- ---------
Total liabilities 21,760 20,069
Commitments and Contingencies
Shareholders' Equity:
Common stock, $0.01 par value, 20,000 shares
authorized, 6,161 and 6,152 shares issued
and outstanding, respectively 62 62
Additional paid-in capital 35,193 35,121
Retained Earnings 14,627 12,350
--------- ---------
Total shareholders' equity 49,882 47,533
Total liabilities and
Shareholders' equity $ 71,642 $ 67,602
========= =========
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