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Quality Systems Rises as Results Beat Expectations

Quality Systems Inc., an Irvine healthcare software maker, on Friday reported results for the recently ended quarter that surpassed analysts’ projections.

Quality’s shares closed up about 4% Friday to a market value of $2.2 billion.

The company reported a profit of $17.5 million for the three months ended Dec. 31, which was 33% higher than a year earlier.

Profits for Quality, which makes software that doctors and dentists use to manage their practices, were above the consensus estimate of $15.7 million that Wall Street was looking for.

Revenue grew 23% to $91.9 million, above analysts’ expectations of $89.7 million.

Quality said it was “in a very positive position to take advantage of the benefits stemming from the first year” of incentives provided by federal stimulus spending for electronic medical records.

The software maker, as is its custom, didn’t provide quarterly financial guidance.

Analysts expect Quality to post a $17.5 million profit on revenue of $93.5 million in the current quarter.

Quality said come April, shareholders are set to get a dividend payout of $10.2 million, up from a previously announced $8.7 million dividend.

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