Quality Systems 2Q results miss Wall Street's view

IRVINE, Calif. -- Quality Systems' fiscal second-quarter net income declined 23 percent, weighed down by lower software license sales.

The Irvine, Calif., company's results missed analysts' estimates, and its shares declined more than 8 percent in morning trading.

Quality Systems earned $15.7 million, or 26 cents per share, compared with $20.5 million, or 35 cents per share, a year earlier. Analysts expected earnings of 28 cents per share, according to a FactSet survey.

Revenue for the three months ended Sept. 30 rose 8 percent to $116.1 million from $107.6 million. Wall Street forecast $118.2 million.

The company's stock fell $1.54, or 8.7 percent, to $16.21. The shares have traded in a 52-week range of $15.04 to $46.35.

Quality Systems Inc. develops and markets computer-based practice management, electronic health records and revenue cycle management applications as well as other products and services for medical and dental group practices and small hospitals.

The company also announced Friday that it named Mark H. Davis as a board member. Davis is a managing director at investment firm B. Riley & Co. He fills a seat vacated by Maureen Spivack, who resigned because of conflicting employment obligations.