Boston, MA 05/29/2014 (wallstreetpr) – Healthcare information services company, Quality Systems, Inc. (NASDAQ:QSII) announced that it earned a profit for the fourth quarter compared to a loss in the prior year quarter as revenues rose 3.5% over the last year period. However, the company’s profit fell short of the Wall Street analysts’ expectations.
4Q Results
Quality Systems, Inc. (NASDAQ:QSII) reported a profit of $5.2 million or 9 cents a share compared to a net loss of $4.09 million or a loss of 7 cents a share in the previous year quarter. On a non-GAAP basis, net income dropped 47% to $7.45 million from $14.055 million and earnings plummeted 50% to 12 cents a share from 50 cents a share in the year earlier period. On average, 20 analysts from the Street expected Quality Systems to earn 16 cents a share for the fourth quarter.
Total revenues advanced 3.51% to $115.2 million from $111.29 million in the year-ago quarter. This is much better than the 22 analysts’ average expectations of $112.22 million.
While revenues from system sales dipped 10.6% to $21.7 million from $24.3 million, maintenance, EDI, RCM and other services generated 7.44% more revenues at $93.5 million than $87.03 million recorded in the year earlier quarter.
Though the revenue from System sales witnessed a fall during the fourth quarter, the company said that it could witness a rise in bookings, sales, revenue, and pipeline compared to the third quarter of the fiscal year 2014.
Quality Systems’ gross profit slackened to $61.85 million from $62.998 million, whereas its total operating costs slipped to $54.93 million from $65.13 million in the year-ago quarter. The company closed the year with $113.8 million in cash and investments.
Management Speaks
Quality Systems, Inc. (NASDAQ:QSII)’s president and CEO Steven Plochocki said that it could gain from its marketing and sales strategy during the fourth quarter. Further, the improvement driven by its new Mirth product line are expected to be the two robust uptick drivers for Quality Systems in the next fiscal year 2015.
