UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
July 28, 2003
Date of Report
(Date of earliest event reported)
QUALITY SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
CALIFORNIA
(State or other jurisdiction of incorporation)
0-13801 95-2888568
(Commission File No.) (IRS Employer Identification Number)
18191 Von Karman Avenue, Suite 450
Irvine, California 92612
(Address of Principal Executive Offices)
(949) 255-2600
(Registrant's Telephone Number, Including Area Code)
Item 7. Financial Statements and Exhibits
(c) Exhibits.
99.1 Transcript of conference call held on July 28, 2003.
Item 12. Results of Operations and Financial Condition
The information in this Form 8-K and the Exhibits attached hereto shall
not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), nor shall it be deemed incorporated by
reference in any filing under the Securities Act of 1933, as amended, or the
Exchange Act, except as shall be expressly set forth by specific reference in
such a filing.
On July 28, 2003, Quality Systems, Inc. (referred herein to as the
"Company," "Registrant" or "QSI") held a conference call concerning its
financial performance for the quarter ended June 30, 2003. A transcript of the
conference call is attached to this Form 8-K as Exhibit 99.1. The conference
call contains forward-looking statements regarding QSI and includes cautionary
statements identifying important factors that could cause actual results to
differ materially from those anticipated.
Use of Non-GAAP Financial Measures
The Company from time to time discloses its Days Sales Outstanding ("DSO")
which is a Non-GAAP financial measure. During the quarter ended June 30, 2003,
DSO was 107 days. The Company calculates DSO as follows: Net revenue for the
quarter is annualized (multiplied by four) and then divided by 365 days to yield
an average daily sales amount. The balance of accounts receivable net of any
reserves for bad debts is then divided by that average daily sales amount
resulting in a DSO figure. For the quarter ended June 30, 2003, the calculation
was as follows:
Quarterly Revenue: $16,306,000
Annualized (X 4): $65,224,000
Divided by 365: $178,695 = Average daily revenue
Net Accounts Receivable: $19,039,000
Divided by average daily revenue: $178,695
Equals: 107 days (rounded)
The Company believes the use of DSO provides useful information to
investors regarding the Company's ability to convert its receivables into cash.
DSO thus provides more detailed
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information regarding the Company's financial results than the financial
measures calculated and presented in accordance with GAAP.
As used herein, "GAAP" refers to accounting principles generally accepted
in the United States.
Conference Call Correction
During the conference call, management inadvertently stated the percentage
growth in system sales versus prior quarter and prior year as 32% and 8%
respectively. The correct numbers are 48% and 14% respectively. The transcript
of the conference call (attached as an exhibit hereto) has been annotated to
show the correction.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: August 4, 2003 QUALITY SYSTEMS, INC.
By: /s/ Paul Holt
-----------------------------
Paul Holt
Chief Financial Officer
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INDEX TO EXHIBITS
Exhibit
Number Description
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99.1 Transcript of conference call held on July 28, 2003.
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