UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of Report
(Date of earliest event reported)
November 9, 2004
QUALITY SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
CALIFORNIA 0-13801 95-2888568
(State or other (Commission (IRS Employer
jurisdiction of incorporation) File Number) Identification Number)
18191 Von Karman, Suite 450
Irvine, California 92612
(Address of Principal Executive Offices)
(949) 255-2600
(Registrant's Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions ( see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 8.01. Other Events
The information in this Form 8-K and the Exhibits attached hereto shall
not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), nor shall it be deemed incorporated by
reference in any filing under the Securities Act of 1933, as amended, or the
Exchange Act, except as shall be expressly set forth by specific reference in
such a filing.
On November 3, 2004, Quality Systems, Inc. (referred herein to as the
"Company," "Registrant" or "QSI") held a conference call concerning its
financial performance for the quarter and year ended September 30, 2004. A
transcript of the conference call is attached to this Form 8-K as Exhibit 99.1.
The conference call contains forward-looking statements regarding QSI and
includes cautionary statements identifying important factors that could cause
actual results to differ materially from those anticipated.
Use of Non-GAAP Financial Measures
The Company from time to time discloses its Days Sales Outstanding ("DSO")
which is a Non-GAAP financial measure. During the quarter ended September 30,
2004, DSO was 104 days. The Company calculates DSO as follows: Net revenue for
the quarter is annualized (multiplied by four) and then divided by 365 days to
yield an average daily sales amount. The balance of accounts receivable net of
any reserves for bad debts is then divided by that average daily sales amount
resulting in a DSO figure. For the quarter ended September 30, 2004, the
calculation was as follows:
Quarterly Revenue: $21,217,000
Annualized (X 4): $84,868,000
Divided by 365: $232,515 = Average daily revenue
Net Accounts Receivable: $25,198,000
Divided by average daily revenue: $232,515
Equals: 108 days (rounded)
The Company believes the use of DSO provides useful information to
investors regarding the Company's ability to convert its receivables into cash.
DSO thus provides more detailed information regarding the Company's financial
results than the financial measures calculated and presented in accordance with
GAAP.
As used herein, "GAAP" refers to accounting principles generally accepted
in the United States.
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ITEM 9.01 Financial Statements and Exhibits.
The following exhibit is furnished with this report on Form 8-K:
Exhibit
Number Description
------- -----------------------------------------------------
99.1 Transcript of conference call dated November 3, 2004
concerning financial performance for the period ended
September 30, 2004.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: November 9, 2004 QUALITY SYSTEMS, INC.
By: /s/ Paul Holt
----------------------------
Paul Holt
Chief Financial Officer
INDEX TO EXHIBITS
Exhibit
Number Description
------- -----------------------------------------------------------------
99.1 Transcript of conference call held on November 3, 2004 concerning
financial performance for the period ended September 30, 2004 .
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