Quality Systems Posts Loss, Names New DirectorThursday, May 23, 2013
Irvine-based Quality Systems Inc. today reported a loss in the three months ended in March and named a new director.
Quality makes software that doctors and dentists use to manage their practices. It also makes software for small hospitals.
The company said it earned $12.5 million in the quarter before a $17.1 million goodwill impairment charge related to a review and updated assessment of its hospital business’ fair value.
Analysts had expected Quality to make $16.1 million in the quarter. Wall Street estimates generally exclude charges or adjustments.
The company swung to a net loss of $4.1 million in the three months ended March 31 from a $15.1 million profit a year ago with the charge.
Revenue was up 2% to $111.3 million but fell short of Wall Street estimates of $116.9 million.
Quality posted a profit of $42.7 million on revenue of $460.2 million for the 12 months ended March 31.
Separately, Quality said it named Michael Aghajanian, a lecturer at the University of California, Irvine’s Paul Merage School of Business, to its board. Aghajanian was previously chief executive of management consulting firm Pittiglio Rabin Todd & McGrath, which is now part of PricewaterhouseCoopers.
Aghajanian fills one of two board vacancies created by the recent resignation of directors Patrick Cline, a former Quality president, and longtime dissident shareholder Ahmed Hussein.
Quality’s shares closed down 1% to a market value of $1.11 billion.