Orange County Business Journal

Quality Systems Beats Expectations

Vita Reed Thursday, May 26, 2011

Irvine healthcare software maker Quality Systems Inc. on Thursday reported results for its most recent quarter that beat Wall Street’s expectations.

Quality posted a profit of $18.6 million for the three months ended March 31, 42% higher than a year earlier.

Analysts expected Quality, which makes software that doctors and dentists use to manage their practices, to have a profit of $17.8 million.

Revenue grew 24% to $97.1 million. Wall Street was expecting revenue of $94.8 million.

Quality, as is its custom, didn’t provide quarterly financial guidance in its earnings release.

Wall Street expects Quality to post a profit of $17.8 million in the current quarter.

Analysts see Quality’s revenue coming in at $98.5 million in the quarter.

Quality’s shares closed down about 2% Thursday to a market value of $2.5 billion.

It’s unclear why the shares fell on the news. Speculation on financial message boards suggested Quality’s shares typically move after earnings reports as short sellers seek to change their positions.