Quality Systems Grows On: Fool by Numbers

By Motley Fool Contributors June 8, 2007

25 Recommendations

On June 7, medical records software maker Quality Systems (Nasdaq: QSII) released fourth-quarter earnings for the period ended March 31.

Besides the Q4 performance you see below, full-year sales grew at a 32% clip to $157.2 million, and EPS grew 42% to $1.21.
The NextGen Health Care Information Systems Division was a strong performer, growing 36% in fiscal 2007.
This Motley Fool Stock Advisor recommendation currently has a top-of-the-line five-star rating in Motley Fool CAPS.

(Figures in thousands, except per-share data.)

Income Statement Highlights

	Q4 2007	Q4 2006	Change
Sales	$45,136	$35,565	26.9%
Net Profit	$8,505	$7,638	11.4%
EPS	$0.31	$0.28	10.7%
Diluted Shares	27,600	27,432	0.6%

Get back to basics with the income statement.

Margin Checkup

	Q4 2007	Q4 2006	Change*
Gross Margin	67.2%	68.9%	(1.7)
Operating Margin	29.1%	33.1%	(4.0)
Net Margin	18.8%	21.5%	(2.6)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q4 2007	Q4 2006	Change
Cash + ST Invest.	$60,028	$57,225	4.9%
Accounts Rec.	$63,945	$44,665	43.2%
Inventory	$1,175	$561	109.4%

Liabilities	Q4 2007	Q4 2006	Change
Accounts Payable	$5,246	$2,934	78.8%

The balance sheet reflects the company's health.

Cash Flow Highlights

For some reason, management won't provide cash flow info with the earnings release.

Free cash flow is a Fool's best friend.

Related Foolishness:

Quality Systems is a Stock Advisor recommendation. A free 30-day trial will tell you why.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.