Quality Systems, Inc (QSII) has reported a 43.60 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $10.49 million, or $0.17 a share in the quarter, compared with $7.30 million, or $0.12 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $14.36 million, or $0.23 a share compared with $10.04 million or $0.16 a share, a year ago. Revenue during the quarter grew 9.26 percent to $127.87 million from $117.03 million in the previous year period. Gross margin for the quarter expanded 345 basis points over the previous year period to 57.49 percent. Total expenses were 89.47 percent of quarterly revenues, down from 92.79 percent for the same period last year. This has led to an improvement of 332 basis points in operating margin to 10.53 percent.
Operating income for the quarter was $13.46 million, compared with $8.44 million in the previous year period.
"We’ve seen a number of promising trends throughout the business this year, and I’m pleased with our fiscal third quarter results, as well as with the continued progress we’re making on our strategic initiatives. In addition to improving our customer attrition rates, we’ve also made great strides in customer satisfaction over the last several quarters. During the first 75 days since our new software release, we’ve seen significant interest and already have nearly 500 customers signed up to upgrade," commented Rusty Frantz, president and chief executive officer of Quality Systems, Inc.
Working capital drops significantly
Quality Systems, Inc has witnessed a decline in the working capital over the last year. It stood at $16.88 million as at Dec. 31, 2016, down 85.95 percent or $103.29 million from $120.17 million on Dec. 31, 2015. Current ratio was at 1.14 as on Dec. 31, 2016, down from 1.92 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 56 days for the quarter from 64 days for the last year period. Days sales outstanding went down to 70 days for the quarter compared with 81 days for the same period last year.
At the same time, days payable outstanding went down to 14 days for the quarter from 18 for the same period last year.
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