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Friday, Dec 1, 2023

Quality Systems Posts Loss, Names New Director

Irvine-based Quality Systems Inc. on Thursday reported a loss for the quarter 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 were down about 3% in afternoon trading Friday to a market value of $1.08 billion.

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