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.

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