CORRECTING and REPLACING Quality Systems Reports Fiscal 2010 Second Quarter Results

The corrected release CHANGING TIME OF CONFERENCE CALL reads:

QUALITY SYSTEMS REPORTS FISCAL 2010 SECOND QUARTER RESULTS

Quality Systems, Inc. (NASDAQ:QSII) today announced the results of operations for its fiscal 2010 second quarter ended September 30, 2009. The Company posted record net revenues of $71.7 million in the second quarter, an increase of 22% from the $59.0 million generated during the same quarter of the prior year. The Company reported net income of $11.8 million, up 13% when compared to net income of $10.5 million earned in the comparable quarter of the prior year. Fully diluted earnings per share was $0.41 in the quarter, which was up 11% compared to $0.37 per share earnings recorded in the same quarter last year.

For the quarter, the Company's NextGen Healthcare Information Systems division posted revenue of $67.4 million, up 23% over the same quarter of the prior year and operating income of $21.8 million, up 13% over the same quarter of the prior year.

"We are pleased with the second quarter results as we continue to post revenue and earnings growth. Since the stimulus bill was signed in February 2009, the healthcare community has had an opportunity to become more familiar with the specific details of the American Recovery and Reinvestment Act (ARRA). As a result, there seems to be a heightened comfort level in purchasing decisions relating to electronic health records (EHR) systems," noted Steven T. Plochocki, president and chief executive officer at Quality Systems.

"Additionally, our closure cycles are gaining momentum as our pipeline continues to build," Plochocki concluded.

Quality Systems, Inc. will hold a conference call to discuss second quarter end financial results on October 30, 2009 at 10:00 am ET (7:00 a.m. PT). All participants should dial 888-549-7750 at least ten minutes prior to the start of the call. International callers should dial 1-480-629-9866. To hear a live web simulcast or to listen to the archived web cast following completion of the call, please visit the company web site at www.qsii.com, click on the "Investor Relations" tab, then select "Conference Calls," to access the link to the call. To listen to a telephone replay of the conference call, please dial 1-800-406-7325 and enter reservation identification number 4177638. The replay will be available from approximately 12:00 PM ET on Friday, October 30, 2009, through 11:59 PM ET on Thursday, November 6, 2009.

A transcript of the conference call will be made available on the QSII website (www.qsii.com).

About Quality Systems, Inc.

Irvine, Calif.-based Quality Systems, Inc. and its NextGen Healthcare Information Systems subsidiary develop and market computer-based practice management, patient records and revenue cycle management applications as well as connectivity products and services for medical and dental group practices. Visit www.qsii.com and www.nextgen.com for additional information.

This news release may contain forward-looking statements within the meaning of the federal securities laws. Statements regarding future events, developments, the Company's future performance, as well as management's expectations, beliefs, intentions, plans, estimates or projections relating to the future (including, without limitation, statements concerning revenue and net income), are forward-looking statements within the meaning of these laws and involve a number of risks and uncertainties. Moreover, these forward-looking statements are subject to a number of risks and uncertainties, some of which are outlined below. As a result, actual results may vary materially from those anticipated by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: the volume and timing of systems sales and installations; length of sales cycles and the installation process; the possibility that products will not achieve or sustain market acceptance; seasonal patterns of sales and customer buying behavior; the timing, cost and success or failure of new product and service introductions, development and product upgrade releases; undetected errors or bugs in software; changing economic, political or regulatory influences in the health-care industry; changes in product-pricing policies; availability of third-party products and components; competitive pressures including product offerings, pricing and promotional activities; the Company's ability or inability to attract and retain qualified personnel; possible regulation of the Company's software by the U.S. Food and Drug Administration; uncertainties concerning threatened, pending and new litigation against the Company including related professional services fees; uncertainties concerning the amount and timing of professional fees incurred by the Company generally; changes of accounting estimates and assumptions used to prepare the prior periods' financial statements; general economic conditions; and the risk factors detailed from time to time in Quality Systems' periodic reports and registration statements filed with the Securities and Exchange Commission. A significant portion of the Company's quarterly sales of software product licenses and computer hardware is concluded in the last month of the fiscal quarter, generally with a concentration of such revenues earned in the final ten business days of that month. Due to these and other factors, the Company's revenues and operating results are very difficult to forecast. A major portion of the Company's costs and expenses, such as personnel and facilities, are of a fixed nature and, accordingly, a shortfall or decline in quarterly and/or annual revenues typically results in lower profitability or losses. As a result, comparison of the Company's period-to-period financial performance is not necessarily meaningful and should not be relied upon as an indicator of future performance. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

QUALITY SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
                                                       Three Months Ended  Six Months Ended
                                                       September 30,       September 30,
                                                       2009      2008      2009      2008
Revenues:
Software, hardware and supplies                        $ 22,856  $ 21,297  $ 40,632  $ 42,666
Implementation and training services                   3,380     3,486     6,837     7,071
System sales                                           26,236    24,783    47,469    49,737
Maintenance                                            21,475    17,234    43,115    34,370
Electronic data interchange services                   8,796     6,985     16,958    13,655
Revenue cycle management and related services          8,888     4,527     17,880    6,484
Other services                                         6,303     5,452     12,914    9,959
Maintenance, EDI, RCM and other services               45,462    34,198    90,867    64,468
Total revenue                                          71,698    58,981    138,336   114,205
Cost of revenue:
Software, hardware and supplies                        3,737     3,395     6,441     6,882
Implementation and training services                   3,296     2,626     6,177     5,640
Total cost of system sales                             7,033     6,021     12,618    12,522
Maintenance                                            3,255     2,947     6,280     6,030
Electronic data interchange services                   6,164     5,256     12,054    10,147
Revenue cycle management and related services          6,856     3,132     13,378    4,437
Other services                                         5,003     3,866     9,870     7,313
Total cost of maintenance, EDI, RCM and other services 21,278    15,201    41,582    27,927
Total cost of revenue                                  28,311    21,222    54,200    40,449
Gross profit                                           43,387    37,759    84,136    73,756
Operating expenses:
Selling, general and administrative                    20,428    18,283    40,878    33,535
Research and development costs                         4,346     3,342     8,323     6,461
Total operating expenses                               24,774    21,625    49,201    39,996
Income from operations                                 18,613    16,134    34,935    33,760
Interest income                                        59        340       137       714
Other income                                           -         -         58        -
Income before provision for income taxes               18,672    16,474    35,130    34,474
Provision for income taxes                             6,852     5,975     12,964    12,861
Net income                                             $ 11,820  $ 10,499  $ 22,166  $ 21,613
Net income per share:
Basic                                                  $ 0.41    $ 0.38    $ 0.78    $ 0.78
Diluted                                                $ 0.41    $ 0.37    $ 0.77    $ 0.77
Weighted average shares outstanding:
Basic                                                  28,597    27,930    28,545    27,699
Diluted                                                28,742    28,211    28,717    28,014
Dividends declared per common share                    $ 0.30    $ 0.30    $ 0.60    $ 0.55

QUALITY SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
                                                                    September 30, 2009  March 31, 2009
ASSETS
Current assets:
                         Cash and cash equivalents                  $ 75,429            $ 70,180
                         Restricted cash                            897                 1,303
                         Marketable securities                      7,448               -
                         Accounts receivable, net                   97,240              90,070
                         Inventories, net                           1,245               1,125
                         Income tax receivable                      5,486               5,605
                         Net current deferred tax assets            3,944               3,994
                         Other current assets                       7,985               6,312
                         Total current assets                       199,674             178,589
Marketable securities                                               -                   7,395
Equipment and improvements, net                                     8,026               6,756
Capitalized software costs, net                                     9,646               9,552
Intangibles, net                                                    7,955               8,403
Goodwill                                                            29,381              28,731
Other assets                                                        2,940               2,675
                         Total assets                               $ 257,622           $ 242,101
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
                         Accounts payable                           $ 5,673             $ 5,097
                         Deferred revenue                           48,663              47,584
                         Accrued compensation and related benefits  7,959               9,511
                         Dividends payable                          8,593               8,529
                         Other current liabilities                  12,951              8,888
                         Total current liabilities                  83,839              79,609
Deferred revenue, net of current                                    552                 521
Net deferred tax liabilities                                        3,884               4,566
Deferred compensation                                               1,674               1,838
                         Total liabilities                          89,949              86,534
Commitments and contingencies
Shareholders' equity:
Common stock                                                        286                 284
$0.01 par value; authorized 50,000 shares;
issued and
outstanding 28,643 and 28,447 shares at September
30, 2009
and March 31, 2009, respectively
Additional paid-in capital                                          110,609             103,524
Retained earnings                                                   56,778              51,759
                         Total shareholders' equity                 167,673             155,567
                         Total liabilities and shareholders' equity $ 257,622           $ 242,101

SOURCE: Quality Systems

Quality Systems, Inc. 
Paul Holt, CFO, 949-255-2600 
pholt@qsii.com 
or 
Susan J. Lewis, 303-804-0494 
slewis@qsii.com