Mixed Financial News for QSI

HDM Breaking News, May 29, 2009

Fueled by its new revenue cycle management services, Quality Systems Inc., corporate parent of NextGen Healthcare Information Systems, had strong revenue growth during the fourth quarter of fiscal year 2009, which ended March 31. Net income was nearly flat at $11.356 million.

Total quarterly revenue rose 29% to $65.8 million. System sales during the quarter fell less than 1% compared with the same period a year earlier. But sales of revenue cycle management services totaled $8.1 million during the fourth quarter, compared with $259,000 during the same period in FY 2008. Quarterly revenue from electronic data interchange rose 25% and revenue from other services increased 38%.

The company says it experienced delays in purchasing decisions related to uncertainty surrounding the American Recovery and Reinvestment Act, which was enacted in mid-February. Quality Systems' stock price fell more than 6% in late-morning trading May 29 on the NASDAQ Exchange.

For the quarter, NextGen had operating income of $21.7 million, up 13%, while revenue rose 31% to $62.1 million.

For all of fiscal 2009, Quality Systems' net income rose 15% to $46.1 million, while revenue increased 32% to $245.5 million.

More information is available at qsii.com.

--Joseph Goedert

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