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Tuesday, Apr 7, 2026
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Quality Systems Slumps on Word of SEC Probe

Shares of healthcare software developer Quality Systems Inc. closed down nearly 9% Tuesday, a day after the Irvine company said the Securities and Exchange Commission is looking into stock trading by its chief financial officer.

Late Monday, Quality said it had received a written SEC request for documents and records concerning financial chief Paul Holt.

Word of the probe delayed the full release of Quality’s results for the December quarter.

In initial results, Quality said it expects to report revenue of $38.5 million, up 44% from a year earlier.

Net income for the quarter is expected to be $8.7 million, up 81%.

Quality makes software that doctors and dentists use to manage their practices. The company’s business is booming amid a transition from paper to electronic medical records.

The company’s stock has been one of the best performers among local companies on Wall Street for the past couple of years. It had a recent market value of $1.1 billion.

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