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QSII > SEC Filings for QSII > Form 8-K on 5-Nov-2009All Recent SEC Filings

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Form 8-K for QUALITY SYSTEMS INC


5-Nov-2009

Results of Operations and Financial Condition, Financial Statements and Exhib


Item 2.02. Results of Operations and Financial Condition

On October 30, 2009, Quality Systems, Inc. (the "Company") held a conference call concerning its financial performance for the period ended September 30, 2009. 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 the Company 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 September 30, 2009, DSO was 124 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 September 30, 2009, the calculation was as follows:

Quarterly Revenue: $71,698,000

Annualized (X 4): $286,792,000

Divided by 365: $785,732 = Average daily revenue

Net Accounts Receivable: $97,240,000

Divided by average daily revenue: $785,732

Equals 124 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 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.



Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

99.1 Transcript of conference call held on October 30, 2009.


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