Quality Systems Plummets 35% on Poor Q1 Results

Shares of Quality Systems QSII are seeing increased weakness during Thursday's trading session after the company reported first-quarter results that disappointed analysts' expectations. Quality Systems reported first-quarter EPS of $0.26 versus the estimated $0.35 per share, missing by -25.7%. Revenues came in at $118.3M versus the estimated $120.61M, missing by -1.9%. “Although we delivered record revenue for our fiscal 2013 first quarter driven by strong performance in our recurring revenue streams, our overall results were impacted by lower-than-expected revenue from large, higher margin software system sales. There are times when a limited number of these types of sales can influence performance in any given quarter,” explained Steven T. Plochocki, president and chief executive officer. “However, due to evolving conditions affecting our industry and uncertainty in predicting future results, we are not affirming our previous guidance nor providing revised guidance at this time,” Plochocki said. Thursday, shares of Quality Systems traded down about 32 percent, at about $16.06 per share.