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.coffincg.com
(949) 255-2600 (818) 789-0100
CONTACT: Lou Silverman CONTACT: William F. Coffin, President
President and CEO Sean Collins, Partner
QUALITY SYSTEMS REPORTS SECOND QUARTER RESULTS
IRVINE, Calif.--(BUSINESS WIRE)--October 30, 2003--Quality Systems, Inc.
(NASDAQ:QSII - news) today announced the results of operations for its fiscal
2004 second quarter ended September 30, 2003.
The Company posted net revenues of $17.6 million in the second quarter, an
increase of 35% from $13.0 million for the same quarter last year. The Company
reported net income of $2,408,000 an increase of 41% over net income of
$1,710,000 for the comparable quarter of the prior year. Fully diluted earnings
per share totaled $0.37 in the quarter, an increase of 37% over the fully
diluted $0.27 per share earnings recorded in the same quarter of last year.
The revenue and net income results achieved in the quarter were records for the
company. Results in the second quarter were driven by record revenue and profit
in the company's NextGen Healthcare Information Systems division, which posted
record revenue of $13.5 million, up 57% over the same quarter prior year, and
record operating income of $3.8 million, up 81% over the same quarter prior
year.
Quality Systems, Inc. will hold a conference call to discuss second quarter
financial results today, Thursday, October 30, 2003 at 1:00 p.m. EST (10:00 a.m.
PST). 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 Thursday, October 30 at 1:00 p.m. PST, through Thursday,
November 6 at midnight EST. To access the replay dial (800) 642-1687 and enter
the conference ID number 3512337.
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
develop and market computer-based practice management, medical records, and
connectivity applications for large 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
(more)
Quality Systems - Second Quarter 2004
For Release October 30, 2003
Page 2
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 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 - Second Quarter 2004
For Release October 30, 2003
Page 3
Quality Systems, Inc.
Consolidated Statements of Income
(unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
2003 2002 2003 2002
----------- ----------- ---------- ----------
Net Revenues:
Sales of computer systems,
Upgrades and supplies 10,026,000 6,814,000 19,500,000 13,239,000
Maintenance and other services 7,616,000 6,180,000 14,448,000 12,062,000
----------- ----------- ---------- ----------
17,642,000 12,994,000 33,948,000 25,301,000
Cost of Products and Services 7,492,000 5,660,000 14,102,000 10,580,000
----------- ----------- ---------- ----------
Gross Profit 10,150,000 7,334,000 19,846,000 14,721,000
Selling, General and
Administrative Expenses 4,768,000 3,442,000 9,508,000 7,115,000
Research and Development Costs 1,502,000 1,213,000 2,868,000 2,348,000
----------- ----------- ---------- ----------
Income from Operations 3,880,000 2,679,000 7,470,000 5,258,000
Investment Income 89,000 123,000 189,000 227,000
----------- ----------- ---------- ----------
Income before Provision for Income
Taxes 3,969,000 2,802,000 7,659,000 5,485,000
Provision for Income Taxes 1,561,000 1,092,000 2,974,000 2,148,000
----------- ----------- ---------- ----------
Net Income $ 2,408,000 $ 1,710,000 4,685,000 3,337,000
=========== =========== ========== ==========
Income per Share - Basic $ 0.39 $ 0.28 .76 .55
=========== =========== ========== ==========
Income per Share - Diluted $ 0.37 $ 0.27 .72 .53
=========== =========== ========== ==========
Weighted average number
of shares outstanding - Basic 6,167,000 6,122,000 6,162,000 6,114,000
=========== =========== ========== ==========
Weighted average number
of shares outstanding - Diluted 6,491,000 6,351,000 6,479,000 6,347,000
=========== =========== ========== ==========
Quality Systems - Second Quarter 2004
For Release October 30, 2003
Page 4
Quality Systems, Inc.
Consolidated Balance Sheets
(in thousands)
ASSETS
September 30, March 31,
2003 (unaudited) 2003
---------------- ---------
Current Assets:
Cash and cash equivalents $40,573 $36,443
Accounts receivable, net 21,240 17,561
Inventories 984 667
Deferred tax assets 2,029 2,029
Other current assets 1,867 2,086
------- -------
Total current assets 66,693 58,786
Equipment and Improvements, net 1,797 1,777
Capitalized Software Costs, net 3,020 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 972 869
------- -------
Total assets $76,141 $67,602
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 1,742 $ 2,477
Deferred revenue 15,093 11,699
Other current liabilities 6,900 5,893
------- -------
Total liabilities 23,735 20,069
Commitments and Contingencies
Shareholders' Equity:
Common stock, $0.01 par value, 20,000 shares
authorized, 6,174 and 6,152 shares issued
and outstanding, respectively 62 62
Additional paid-in capital 35,309 35,121
Retained Earnings 17,035 12,350
------- -------
Total shareholders' equity 52,406 47,533
Total liabilities and
Shareholders' equity $76,141 $67,602
======= =======
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