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Quality Systems Profit Misses Expectations; Shares Fall

Quality Systems Inc., an Irvine medical software maker, on Friday posted a profit in its most recent quarter that fell short of analysts’ expectations.

Shares of Quality, which makes software that dentists and doctors use to manage their practices, closed down 3% with a market value of $1.7 billion.

Quality said its profit for the three months through March was up 13% to $13.1 million, below Wall Street’s expectations of $14.2 million.

Revenue rose 19% to $78.5 million, slightly below analysts’ estimate of $78.6 million.

Results were negatively affected by costs relating to its February acquisition of Opus Healthcare Solutions, a Texas-based software maker, Quality said in its earnings release.

Decreased collections from its revenue cycle management unit because of seasonality and record snowfall across the East Coast also affected results, it said.

The software maker also said that Philip Kaplan, its chief operating officer, has resigned. Patrick Cline, Quality Systems’ president, has assumed operational responsibility for its business units.

Quality did not offer an outlook for the current quarter in its earnings release. Analysts look for the company to post a profit of $14.8 million on revenue of $82.1 million.

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