The stock of Quality Systems Inc., parent of NextGen Healthcare Information Systems, lost one-third of its value in heavy trading on July 26 after reporting fiscal 2013 first quarter financial results that fell well below investor expectations. The stock fell from $23.63 per share to close at $15.95.
The explanation from the company, suggesting slower sales from its core base of larger physician practices, and the absence of future guidance on financial performance, made the bad quarter even more unsettling.
“Although we delivered record revenue for our fiscal 2013 first quarter driven by strong performance in our recurring revenue streams, our overall results were impacted by lower-than-expected revenue from large, higher margin software system sales. There are times when a limited number of these types of sales can influence performance in any given quarter,” said Steven Plochocki, president and CEO. “We remain confident about our future performance and prospects. However, due to evolving conditions affecting our industry and uncertainty in predicting future results, we are not affirming our previous guidance nor providing revised guidance at this time.”
QSI also is embroiled in a proxy fight with dissident board member and shareholder Ahmed Hussein, who holds 15.7 percent of the stock and is seeking control of the board by opposing the company’s nominated directors and offering his own slate.
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