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 Quality Systems, Inc. Reports Fiscal 2015 Fourth Quarter and Year-End Results
   Thursday, May 21, 2015 5:00:00 AM ET

Quality Systems, Inc. (QSII ) announced today results for its fiscal 2015 fourth quarter and year ended March 31, 2015.

Revenues for the fiscal 2015 fourth quarter reached $128.4 million, an increase of 11 percent versus $115.2 million reported for the fiscal 2014 fourth quarter. Net income for the 2015 fourth quarter was $10.7 million, increasing 107 percent when compared with $5.2 million in the 2014 fourth quarter.

On a GAAP basis, fully diluted earnings per share was $0.18 in the fiscal 2015 fourth quarter compared with $0.09 for the same period a year ago. On a non-GAAP basis, fully diluted earnings per share for the fiscal 2015 fourth quarter was $0.21 versus $0.12 reported in the fourth quarter a year ago.

At quarter-end, the Company’s liquidity position was strong, with $130.6 million of cash and investments.

For the fiscal year ended March 31, 2015, revenues reached $490.2 million, up 10 percent when compared with $444.7 million for the 2014 fiscal year. The recurring revenue base, which includes maintenance, EDI, RCM and other services, reached $405.2 million and represents 83 percent of total revenues for the fiscal year ended 2015.

Net income for fiscal 2015 was $27.3 million, versus $15.7 million reported in fiscal 2014, an increase of 74 percent. On a GAAP basis, fully diluted earnings per share for the 2015 fiscal year was $0.45, compared with $0.26 reported in the 2014 fiscal year. On a non-GAAP basis, fully diluted earnings per share for the fiscal 2015 year was $0.62 versus $0.70 reported in the comparable period a year ago (non-GAAP fully diluted earnings per share is reconciled to its corresponding GAAP measure at the end of this release). The fiscal 2015 non-GAAP earnings reflects the Company’s significant and growing investment in research and development, the net cost of which rose by $27.7 million, or 67 percent, from fiscal 2014 to fiscal 2015.

"We are very pleased with the fourth quarter and fiscal 2015 results overall. This latest quarter represents the fifth consecutive period in which we delivered increases in consolidated revenue, and which culminated in a new quarterly revenue record. Our revenue growth in the 2015 fourth quarter and fiscal year demonstrates the impact of our broad-based market offerings, which now span nearly 30 products and services directly aimed at the evolving value-based Accountable Care Organization (ACO) model. As physicians strive to better manage their patients and payors seek the necessary intelligence to help control costs while emphasizing quality of care, we believe we are well positioned to help all stakeholders meet the challenges that continue to unfold," explained Steven T. Plochocki, president and chief executive officer.

"Our portfolio of products and services addresses the ways in which healthcare constituents communicate and manage patient populations. We believe that as we enter into our fiscal 2016 year, there will be significant opportunities for our RCM business line, along with the Mirth interoperability and connectivity solutions we offer. With ICD-10 fast approaching, practices seek the exact type of support Quality Systems/NextGen Healthcare brings to the table. With our sales force boasting strong cross-selling capabilities across our large installed client base and beyond, as well as our enhanced marketing capabilities and seasoned implementation team, we stand ready to meet healthcare’s rapidly changing needs. Our ability to strengthen our offerings, expand our solutions and demonstrate solid growth is reflective of our agility and commitment to seamlessly serving the healthcare information technology industry," Plochocki said.

Quality Systems also announced that its Board of Directors declared a quarterly cash dividend of seventeen and one-half cents ($0.175) per share on the Company’s outstanding shares of common stock, payable to shareholders of record as of June 12, 2015 with an anticipated distribution date of July 6, 2015. The $0.175 per share cash dividend is pursuant to the Company’s current practice to pay a regular quarterly dividend on the Company’s outstanding shares of common stock, subject to 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.

In addition, the Company announced that it will hold its 2015 Annual Shareholders’ Meeting on Tuesday, August 11, 2015 at 1:00 PM local time. The meeting will be held at the Center Club, 650 Town Center Drive, Costa Mesa, California 92626. Holders of record as of June 16, 2015 are eligible to vote and attend. Proxy materials and the 2015 Annual Report will be made available to shareholders of record and will also be posted on the Company’s website at www.qsii.com.

Quality Systems will host a conference call to discuss its fiscal 2015 fourth quarter and year-end results on Thursday, May 21, 2015 at 10:00 AM ET (7:00 AM PT). All participants should dial 1-866-900-9499 at least ten minutes prior to the start of the call and reference conference ID #46698028. International callers should dial 1-937-502-2136. To hear a live Web simulcast or to listen to the archived webcast following completion of the call, please visit the Company’s website at www.qsii.com, click on the "Investors" tab, then select "Conference Calls," to access the link to the call. To listen to a telephone replay of the conference call, please dial 800-585-8367 or 404-537-3406 and enter conference ID #46698028. The replay will be available from approximately 1:00 PM ET on Thursday, May 21, 2015, through 11:59 PM ET on Thursday, May 28, 2015.

As previously announced, Quality Systems will host its Investment Community Analyst Day for those analysts that follow the Company on Monday, June 8, 2015 from 8:30 AM - 1:00 PM at the Le Parker Meridien Hotel in New York City, located at 119 West 56th Street (between 6th and 7th Avenues), 212-245-5000. The general public can access the session in real-time by visiting www.qsii.com, clicking on Investors, and selecting Events & Presentations. An archive of the analyst session will also be available for 90 days.

A transcript of the conference call will be made available on the Company’s website at www.qsii.com.

About Quality Systems, Inc.

Irvine, Calif.-based Quality Systems, Inc. and its NextGen Healthcare subsidiary develop and market computer-based practice management, electronic health records and revenue cycle management applications as well as connectivity products and services for medical and dental group practices and small hospitals. Visit www.qsii.com and www.nextgen.com for additional information.

SAFE HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS

This news release may contain forward-looking statements within the meaning of the federal securities laws, including but not limited to, statements regarding future events, developments in the healthcare sector and regulatory framework, the Company’s future performance, as well as management’s expectations, beliefs, intentions, plans, estimates or projections relating to the future (including, without limitation, statements concerning revenue, net income, and earnings per share). Risks and uncertainties exist that may cause the results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements and additional risks and uncertainties are set forth in Part I, Item A of our most recent Annual Report on Form 10-K for the fiscal year ended March 31, 2014, including but not limited to: the volume and timing of systems sales and installations; length of sales cycles and the installation process; the possibility that products will not achieve or sustain market acceptance; seasonal patterns of sales and customer buying behavior; impact of incentive payments under The American Recovery and Reinvestment Act on sales and the ability of the Company to meet continued certification requirements; the development by competitors of new or superior technologies; the timing, cost and success or failure of new product and service introductions, development and product upgrade releases; undetected errors or bugs in software; product liability; changing economic, political or regulatory influences in the health-care industry; changes in product-pricing policies; availability of third-party products and components; competitive pressures including product offerings, pricing and promotional activities; the Company’s ability or inability to attract and retain qualified personnel; possible regulation of the Company’s software by the U.S. Food and Drug Administration; changes of accounting estimates and assumptions used to prepare the prior periods’ financial statements; and general economic conditions. A significant portion of the Company’s quarterly sales of software product licenses and computer hardware is concluded in the last month of a fiscal quarter, generally with a concentration of such revenues earned in the final ten business days of that month. Due to these and other factors, the Company’s revenues and operating results are very difficult to forecast. A major portion of the Company’s costs and expenses, such as personnel and facilities, are of a fixed nature and, accordingly, a shortfall or decline in quarterly and/or annual revenues typically results in lower profitability or losses. As a result, comparison of the Company’s period-to-period financial performance is not necessarily meaningful and should not be relied upon as an indicator of future performance. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

USE OF NON-GAAP FINANCIAL MEASURES

This news release contains certain non-GAAP (Generally Accepted Accounting Principles) financial measures, which are provided only as supplemental information. Investors should consider these non-GAAP financial measures only in conjunction with the comparable GAAP financial measures. These non-GAAP measures are not in accordance with or a substitute for U.S. GAAP. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation of non-GAAP financial measures to the most directly comparable financial measure in the accompanying financial tables. Other companies may calculate non-GAAP measures differently than Quality Systems, which limits comparability between companies. The Company believes that its presentation of non-GAAP diluted earnings per share provides useful supplemental information to investors and management regarding the Company’s financial condition and results. The Company calculates non-GAAP diluted earnings per share by excluding acquisition costs, amortization of acquired intangible assets, impairment of goodwill and other assets, securities litigation defense costs, share-based compensation, and other non-run-rate expenses from GAAP income before provision for income taxes. The non-GAAP provision for income taxes is calculated by excluding the income tax effect of the non-GAAP adjustments.

                                                                                                                                                                                                                      
                                                                                                                                                                                                                                     QUALITY SYSTEMS, INC.
                                                                                                                                                                                                                                     CONSOLIDATED STATEMENTS OF INCOME
                                                                                                                                                                                                                                    (IN THOUSANDS, EXCEPT PER SHARE DATA)
                                                                                                                                                                                                                                     (UNAUDITED)
                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                     Three Months Ended March 31,                                                                                                                                                                                            Fiscal Year Ended March 31,
                                                                                                                            ----------------------------------------------------------------------------------------------------------------------------------------------                                                               -------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                   2015                                         2014                                                                                                   2015                                                    2014
                                                                                                                            --------------------------------------------------                                                               -----------------------------                                                               --------------------------------------------------                                                               --------------------------------------------------
Revenues:
   Software and hardware                                                                                                                       $  16,061                                                                                                        $  15,186                                                                                   $  61,373                                                                                                        $  60,834
   Implementation and training services                                                                                         6,684                                                                      6,518                                                                   23,648                                                                     25,948  
                                                                                                                            -------------------- ------- --------------------                                                                -------------------- -------                                                                -------------------- ------- --------------------                                                                -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
      System sales                                                                                                                                22,745                                                                                                           21,704                                                                                      85,021                                                                                                           86,782
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
   Maintenance                                                                                                                                    43,234                                                                                                           41,376                                                                                     169,219                                                                                                          160,060
   Electronic data interchange services                                                                                                           20,082                                                                                                           17,421                                                                                      76,358                                                                                                           67,295
   Revenue cycle management and related services                                                                                                  19,720                                                                                                           15,316                                                                                      74,237                                                                                                           62,976
   Other services                                                                                                              22,607                                                                     19,386                                                                   85,390                                                                     67,554  
                                                                                                                            -------------------- ------- --------------------                                                                -------------------- -------                                                                -------------------- ------- --------------------                                                                -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
      Maintenance, EDI, RCM and other services                                                                                105,643                                                                     93,499                                                                  405,204                                                                    357,885  
                                                                                                                            -------------------- ------- --------------------                                                                -------------------- -------                                                                -------------------- ------- --------------------                                                                -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
         Total revenues                                                                                                       128,388                                                                    115,203                                                                  490,225                                                                    444,667  
                                                                                                                            -------------------- ------- --------------------                                                                -------------------- -------                                                                -------------------- ------- --------------------                                                                -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Cost of revenue:
   Software and hardware                                                                                                                           5,404                                                                                                            7,115                                                                                      24,693                                                                                                           44,226
   Implementation and training services                                                                                         5,479                                                                      8,109                                                                   23,902                                                                     29,681  
                                                                                                                            -------------------- ------- --------------------                                                                -------------------- -------                                                                -------------------- ------- --------------------                                                                -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
      Total cost of system sales                                                                                                                  10,883                                                                                                           15,224                                                                                      48,595                                                                                                           73,907
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
   Maintenance                                                                                                                                     7,802                                                                                                            6,384                                                                                      28,866                                                                                                           22,590
   Electronic data interchange services                                                                                                           12,274                                                                                                           10,845                                                                                      48,244                                                                                                           42,567
   Revenue cycle management and related services                                                                                                  14,252                                                                                                           12,059                                                                                      54,406                                                                                                           46,203
   Other services                                                                                                              10,630                                                                      8,842                                                                   43,053                                                                     34,896  
                                                                                                                            -------------------- ------- --------------------                                                                -------------------- -------                                                                -------------------- ------- --------------------                                                                -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
      Total cost of maintenance, EDI, RCM and other services                                                                   44,958                                                                     38,130                                                                  174,569                                                                    146,256  
                                                                                                                            -------------------- ------- --------------------                                                                -------------------- -------                                                                -------------------- ------- --------------------                                                                -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
         Total cost of revenue                                                                                                 55,841                                                                     53,354                                                                  223,164                                                                    220,163  
                                                                                                                            -------------------- ------- --------------------                                                                -------------------- -------                                                                -------------------- ------- --------------------                                                                -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
         Gross profit                                                                                                                             72,547                                                                                                           61,849                                                                                     267,061                                                                                                          224,504
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Operating expenses:
   Selling, general and administrative                                                                                                            41,279                                                                                                           38,676                                                                                     158,172                                                                                                          149,214
   Research and development costs                                                                                                                 17,638                                                                                                           15,120                                                                                      69,240                                                                                                           41,524
   Amortization of acquired intangible assets                                                                                                        898                                                                                                            1,132                                                                                       3,693                                                                                                            4,805
   Impairment of goodwill and other assets                                                                                          -                                                                          -                                                                        -                                                                      5,873  
                                                                                                                            -------------------- ------- --------------------                                                                -------------------- -------                                                                -------------------- ------- --------------------                                                                -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
      Total operating expenses                                                                                                 59,815                                                                     54,928                                                                  231,105                                                                    201,416  
                                                                                                                            -------------------- ------- --------------------                                                                -------------------- -------                                                                -------------------- ------- --------------------                                                                -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
         Income from operations                                                                                                                   12,732                                                                                                            6,921                                                                                      35,956                                                                                                           23,088
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Interest income (expense), net                                                                                                                      (271 )                                                                                                            322                                                                                        (230 )                                                                                                            269
Other income (expense), net                                                                                                       (45 )                                                                                          35                                                                      (62 )                                                                                        (356 )
                                                                                                                            -------------------- ------- --------------------                                                                -------------------- -------                                                                -------------------- ------- --------------------                                                                -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Income before provision for income taxes                                                                                                          12,416                                                                                                            7,278                                                                                      35,664                                                                                                           23,001
Provision for income taxes                                                                                                      1,673                                                                      2,077                                                                    8,332                                                                      7,321  
                                                                                                                            -------------------- ------- --------------------                                                                -------------------- -------                                                                -------------------- ------- --------------------                                                                -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
         Net income                                                                                                                            $  10,743                                                                                                        $   5,201                                                                                   $  27,332                                                                                                        $  15,680
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Net income per share:
   Basic                                                                                                                                       $    0.18                                                                                                        $    0.09                                                                                   $    0.45                                                                                                        $    0.26
   Diluted                                                                                                                                     $    0.18                                                                                                        $    0.09                                                                                   $    0.45                                                                                                        $    0.26
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Weighted-average shares outstanding:
   Basic                                                                                                                                          60,288                                                                                                           60,208                                                                                      60,259                                                                                                           59,918
   Diluted                                                                                                                                        60,956                                                                                                           60,592                                                                                      60,849                                                                                                           60,134
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Dividends declared per common share                                                                                                            $   0.175                                                                                                        $   0.175                                                                                   $    0.70                                                                                                        $    0.70
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                       
                                                                                                                                                                                                                      QUALITY SYSTEMS, INC.
                                                                                                                                                                                                                   CONSOLIDATED BALANCE SHEETS
                                                                                                                                                                                                                         (IN THOUSANDS)
                                                                                                                                                                                                                           (UNAUDITED)
                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                March 31,                                                                                                                                                                                                                                                           March 31,
                                                                                                                                                                  2015                                                                                                                                                                                                                                                                2014
                                                                                                                                           --------------------------------------------------                                                                                                                                                                                                                  --------------------------------------------------
ASSETS
Current assets:
   Cash and cash equivalents                                                                                                                                  $ 118,993                                                                                                                                                                                                                                                           $ 103,145
   Restricted cash and cash equivalents                                                                                                                           2,419                                                                                                                                                                                                                                                               4,351
   Marketable securities                                                                                                                                         11,592                                                                                                                                                                                                                                                              10,656
   Accounts receivable, net                                                                                                                                     107,669                                                                                                                                                                                                                                                             113,268
   Inventories                                                                                                                                                      622                                                                                                                                                                                                                                                                 834
   Income taxes receivable                                                                                                                                        3,147                                                                                                                                                                                                                                                               8,366
   Deferred income taxes, net                                                                                                                                    24,080                                                                                                                                                                                                                                                              21,531
   Other current assets                                                                                                                       11,535                                                                                                                                                                                                                        11,135  
                                                                                                                                           -------------------- ------- --------------------                                                                                                                                                                                                                   -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                
      Total current assets                                                                                                                                      280,057                                                                                                                                                                                                                                                             273,286
                                                                                                                                                                                                                                                                                                                                                                                                                
Equipment and improvements, net                                                                                                                                  20,807                                                                                                                                                                                                                                                              22,801
Capitalized software costs, net                                                                                                                                  40,397                                                                                                                                                                                                                                                              39,152
Intangibles, net                                                                                                                                                 27,689                                                                                                                                                                                                                                                              33,016
Goodwill                                                                                                                                                         73,571                                                                                                                                                                                                                                                              72,804
Other assets                                                                                                                                  18,000                                                                                                                                                                                                                        10,292  
                                                                                                                                           -------------------- ------- --------------------                                                                                                                                                                                                                   -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                
      Total assets                                                                                                                                            $ 460,521                                                                                                                                                                                                                                        $ 451,351  
                                                                                                                                           ==================== ======= ====================                                                                                                                                                                                                                   ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
   Accounts payable                                                                                                                                           $  10,018                                                                                                                                                                                                                                                           $   7,888
   Deferred revenue                                                                                                                                              66,343                                                                                                                                                                                                                                                              71,077
   Accrued compensation and related benefits                                                                                                                     24,051                                                                                                                                                                                                                                                              15,953
   Income taxes payable                                                                                                                                          10,048                                                                                                                                                                                                                                                                   -
   Dividends payable                                                                                                                                             10,700                                                                                                                                                                                                                                                              10,686
   Other current liabilities                                                                                                                  33,924                                                                                                                                                                                                                        21,369  
                                                                                                                                           -------------------- ------- --------------------                                                                                                                                                                                                                   -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                
      Total current liabilities                                                                                                                                 155,084                                                                                                                                                                                                                                                             126,973
                                                                                                                                                                                                                                                                                                                                                                                                                
Deferred revenue, net of current                                                                                                                                  1,349                                                                                                                                                                                                                                                               2,187
Deferred compensation                                                                                                                                             5,750                                                                                                                                                                                                                                                               4,809
Other noncurrent liabilities                                                                                                                  14,798                                                                                                                                                                                                                        22,292  
                                                                                                                                           -------------------- ------- --------------------                                                                                                                                                                                                                   -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                
      Total liabilities                                                                                                                                         176,981                                                                                                                                                                                                                                                             156,261
                                                                                                                                                                                                                                                                                                                                                                                                                
Commitments and contingencies
                                                                                                                                                                                                                                                                                                                                                                                                                
Shareholders’ equity:
   Common stock
                                                                                                                                                                    603                                                                                                                                                                                                                                                                 602
      $0.01 par value; authorized 100,000 shares; issued and outstanding
      60,303 and 60,206 shares at March 31, 2015 and 2014, respectively
   Additional paid-in capital                                                                                                                                   198,650                                                                                                                                                                                                                                                             194,739
   Accumulated other comprehensive loss                                                                                                                            (192 )                                                                                                                                                                                                                                                              (182 )
   Retained earnings                                                                                                                          84,479                                                                                                                                                                                                                        99,931  
                                                                                                                                           -------------------- ------- --------------------                                                                                                                                                                                                                   -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                
      Total shareholders’ equity                                                                                  283,540                                                                                                                                                                                                                       295,090  
                                                                                                                                           -------------------- ------- --------------------                                                                                                                                                                                                                   -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                
      Total liabilities and shareholders’ equity                                                                                   $ 460,521                                                                                                                                                                                                                                        $ 451,351  
                                                                                                                                           ==================== ======= ====================                                                                                                                                                                                                                   ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                      QUALITY SYSTEMS, INC.
                                                                                                                                                                                                                   NON-GAAP FINANCIAL MEASURES
                                                                                                                                                                                                              (IN THOUSANDS, EXCEPT PER SHARE DATA)
                                                                                                                                                                                                                                                                                                                                                                                                                                 
RECONCILIATION OF NON-GAAP DILUTED EARNINGS
PER SHARE
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         
                                                                                                                                                                                    Three Months Ended March 31,                                                                                                                                                                   Fiscal Year Ended March 31,
                                                                                                                                   -------------------------------------------------------------------------------------------------------------------------------                                                               -------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                 2015                                                                                           2014                                                                                           2015                                                                                           2014
                                                                                                                                   --------------------------------                                                               --------------------------------                                                               --------------------------------                                                               --------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                 
Income before provision for income taxes - GAAP                                                                                                       $     12,416                                                                                   $      7,278                                                                                   $     35,664                                                                                   $     23,001
                                                                                                                                                                                                                                                                                                                                                                                                                                 
Plus items included in cost of revenue:
   Amortization of acquired software technology                                                                                                                858                                                                                            858                                                                                          3,433                                                                                          3,526
   Impairment of other assets*                                                                                                                                   -                                                                                              -                                                                                              -                                                                                         20,098
   Share-based compensation                                                                                                                  91                                                                          95                                                                         373                                                                         348
                                                                                                                                   -------------------- ----------                                                                -------------------- ----------                                                                -------------------- ----------                                                                -------------------- ----------
Total adjustments to cost of revenue                                                                                                                           949                                                                                            953                                                                                          3,806                                                                                         23,972
                                                                                                                                                                                                                                                                                                                                                                                                                                 
Plus items included in operating expenses:
   Acquisition costs                                                                                                                                           441                                                                                            846                                                                                          2,923                                                                                          1,448
   Amortization of acquired intangible assets                                                                                                                  898                                                                                          1,132                                                                                          3,693                                                                                          4,805
   Impairment of goodwill and other assets                                                                                                                       -                                                                                              -                                                                                              -                                                                                          5,873
   Securities litigation defense costs                                                                                                                       1,491                                                                                              -                                                                                          3,951                                                                                          1,721
   Share-based compensation                                                                                                                                    754                                                                                            563                                                                                          3,098                                                                                          2,142
   Other non-run-rate expenses                                                                                                                -                                                                           -                                                                         315                                                                           -
                                                                                                                                   -------------------- ----------                                                                -------------------- ----------                                                                -------------------- ----------                                                                -------------------- ----------
Total adjustments to operating expenses                                                                                                                      3,584                                                                                          2,541                                                                                         13,980                                                                                         15,989
                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                   --------------------------------                                                               --------------------------------                                                               --------------------------------                                                               --------------------------------
Total adjustments to GAAP income before provision for income taxes:                                                                       4,533                                                                       3,494                                                                      17,786                                                                      39,961
                                                                                                                                   -------------------- ----------                                                                -------------------- ----------                                                                -------------------- ----------                                                                -------------------- ----------
                                                                                                                                                                                                                                                                                                                                                                                                                                 
Income before provision for income taxes - Non-GAAP                                                                                                         16,949                                                                                         10,772                                                                                         53,450                                                                                         62,962
Provision for income taxes                                                                                                                4,425                                                                       3,318                                                                      15,718                                                                      20,966
                                                                                                                                   -------------------- ----------                                                                -------------------- ----------                                                                -------------------- ----------                                                                -------------------- ----------
                                                                                                                                                                                                                                                                                                                                                                                                                                 
Net income - Non-GAAP                                                                                                                                 $     12,524                                                                                   $      7,454                                                                                   $     37,732                                                                                   $     41,996
                                                                                                                                   ==================== ==========                                                                ==================== ==========                                                                ==================== ==========                                                                ==================== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                                 
Diluted net income per share - Non-GAAP                                                                                                               $       0.21                                                                                   $       0.12                                                                                   $       0.62                                                                                   $       0.70
                                                                                                                                                                                                                                                                                                                                                                                                                                 
Weighted-average shares outstanding (diluted):                                                                                                              60,956                                                                                         60,592                                                                                         60,849                                                                                         60,134
                                                                                                                                                                                                                                                                                                                                                                                                                                 
*     Relates to the impairment of acquired software technology and
                                            capitalized software costs in the Hospital Solutions Division
                                             

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20150521005357r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20150521005357/en/

SOURCE: Quality Systems, Inc.

Quality Systems, Inc. 
John Stumpf, Interim Chief Financial Officer 
Phone: 949-255-2600 
jstumpf@qsii.com 
or 
Susan J. Lewis 
Phone: 954-389-3700 
slewis@qsii.com


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