On Nov. 2, medical records software maker Quality Systems (NASDAQ:QSII) released second-quarter earnings for the period ended Sept. 30.

  • Sales jumped 27%, and EPS grew 43% to $0.30.
  • The NextGen Health Care Information Systems subsidiary saw revenue climb 31% and operating income rise 43%.
  • Free cash flow continued to pour in, at $14.5 million in this quarter, up 22% over the same period last year.
  • Our Motley Fool CAPS community collectively gives this Stock Advisor recommendation four out of a possible five stars, with 100 Outperform ratings from our all-stars, versus just six Underperforms.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q2 2007

Q2 2006

Change

Sales

$37,459.0

$29,542.0

26.8%

Net Profit

$8,337.0

$5,794.0

43.9%

EPS

$0.30

$0.21

42.9%

Diluted Shares

27,380.0

27,128.0

0.9%



Get back to basics with a look at the income statement.

Margin Checkup

Q2 2007

Q2 2006

Change*

Gross Margin

68.4%

67.5%

0.9

Operating Margin

34.8%

30.6%

4.2

Net Margin

22.3%

19.6%

2.7

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2007

Q2 2006

Change

Cash + ST Invest.

$74,700.0

$63,126.0

18.3%

Accounts Rec.

$55,292.0

$40,733.0

35.7%

Inventory

$856.0

$547.0

56.5%



Liabilities

Q2 2007

Q2 2006

Change

Accounts Payable

$3,389.0

$3,450.0

(1.8%)

Long-Term Debt

$0.0

$0.0

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2007

YTD 2006

Change

Cash From Ops.

$15,797.0

$13,572.0

16.4%

Capital Expenditures

$1,315.0

$1,649.0

(20.3%)

Free Cash Flow

$14,482.0

$11,923.0

21.5%



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Related Foolishness:

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