The stock price of Quality Systems Inc. fell 4 percent in morning trading on May 28 after profits for the fourth quarter of fiscal 2010 fell short of investment analysts' expectations, despite a healthy revenue boost.
The company also announced without explanation the resignation of COO Philip Kaplan and did not immediately return a telephone call asking for the reason. Kaplan became COO on Sept. 17, 2009. Patrick Cline, president of Quality Systems, has assumed operational responsibility of the company's business units.
Irvine, Calif.-based QSI is the parent company of NextGen Healthcare Information Systems, which comprises most of its business. For the fourth quarter ended March 31, QSI had net income of $13.1 million, up 15 percent compared with the same period a year ago. Revenue increased 19 percent to $78.5 million.
Earnings per share for the quarter, however, totaled 45 cents, missing expectations of 49 cents. Amortization of acquired intangibles and transaction costs related to the acquisition of hospital software vendor Opus Healthcare Solutions negatively affected fourth quarter results, according to QSI. The company also experienced decreased collections from its revenue cycle management business because of record snowfall on the East Coast and seasonal factors.
For all of fiscal 2010, QSI had net income of $48.4 million, up 5 percent, as revenue increased 19 percent to $291.8 million. More information is available at qsii.com.
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