Quality Systems first-quarter net revenues increase 24% to record $82.9 million

Quality Systems, Inc. (NASDAQ:QSII) today announced the results of operations for its fiscal 2011 first quarter ended June 30, 2010.

The Company reported record net revenues of $82.9 million for the fiscal 2011 first quarter, an increase of 24% from $66.6 million in the same quarter last year. The Company reported net income of $12.1 million, up 17% versus $10.3 million in net income for the comparable period a year ago. Fully diluted earnings per share were $0.42 in the fiscal 2011 first quarter; an increase of 17% when compared with $0.36 fully diluted earnings per share for the first quarter of fiscal 2010. The fiscal 2011 first quarter results include amortization of approximately $0.8 million of acquired intangibles, compared with approximately $0.4 million for the same quarter a year ago.

The fiscal 2011 first quarter results included approximately $0.8 million in expenses related to the integration of the Company's previously acquired Revenue Cycle Management (RCM) entities, Healthcare Strategic Initiatives (HSI) and Practice Management Partners (PMP). Both of these acquisitions are now administered and aggregated in the Company's new NextGen Practice Solutions division.

"The Company continues to prepare for the expected incentives to be distributed from the American Recovery and Reinvestment Act (ARRA). Now that the requirements for defining Stage 1 Meaningful Use criteria have been completed, physicians and hospitals can feel comfortable and confident in moving ahead with their electronic health records (EHR) decisions," noted Steven T. Plochocki, chief executive officer.

"We are ready to accommodate these needs. As previously stated during the past several quarters, we have been aggressively preparing for this transition to an electronic-based healthcare system by continually investing in sales, marketing, implementation and training, enhancing our staff, structure, operations and technology. We are confident that NextGen Healthcare's novel technology, leading industry position and extensive educational offerings will prove beneficial to providers as they evaluate the options available in the marketplace and make their EHR selections," Plochocki concluded.

Quality Systems, Inc. also announced that the Company's Board of Directors declared a cash dividend of Thirty Cents ($0.30) per share on the Company's outstanding shares of Common Stock, payable to shareholders of record as of September 17, 2010, with an anticipated distribution date of October 5, 2010, pursuant to the Company's current policy to pay a regular quarterly dividend of Thirty Cents ($0.30) per share on the Company's outstanding shares of Common Stock, subject to further Board review and approval, and establishment of record and distribution dates by the Board prior to the declaration and payment of each such quarterly dividend.