Quality Systems Beats Estimates, Splits SharesThursday, October 27, 2011
Irvine-based medical software company Quality Systems Inc. beat analysts’ expectations for the third quarter and announced a two-for-one stock split before the market opened today.
Quality makes software that dentists and doctors use to manage their practices.
The company reported a profit of $20.5 million for the third quarter, up 53% from the same period a year ago and beating Wall Street’s projection of $20.1 million.
Quality’s revenue was $107.6 million, 32% higher than the same period a year ago and surpassing analyst estimates of $103.7 million.
Chief Executive Steven Plochocki said in a release that Quality’s growth and performance “stem from sales resulting from decisions made in part based on the (economic) stimulus plan.”
Quality is seeing increased sales to companies who use its software to shift to electronic medical records.
The money is “realizing the benefits of the positioning and preparation we did in advance” of getting stimulus money, Plochocki said.