Quality Systems 2Q profit rises on boosted sales

Quality Systems posts higher 2nd-qtr profit as sales improve with government stimulus plan

• On 8:38 am EDT, Friday October 30, 2009

IRVINE, Calif. (AP) -- Quality Systems Inc. said Friday its profit jumped 13 percent as sales improved in its fiscal second quarter.

The medical records and billing software maker said sales have recovered as health care providers have become more comfortable with the details of the American Recovery and Reinvestment Act of 2009, the federal government's stimulus plan passed by Congress earlier this year.

With more time to digest the plan's repercussions, "there seems to be a heightened comfort level in purchasing decisions relating to electronic health records systems," CEO Steven Plochocki said in a statement.

The Irvine, Calif., company blamed uncertainty about the program for a slide in profits last quarter.

Quality Systems posted net income of $11.8 million, or 41 cents per share, for the quarter ending Sept. 30. That compares with a profit of $10.5 million, or 37 cents per share, in the same quarter last year.

Revenue climbed 22 percent to $71.7 million from $59 million.

On average, analysts polled by Thomson Reuters expected a profit of 41 cents per share on $69.5 million in revenue.