Exhibit 99.1

 

 

 

 

 

FOR IMMEDIATE RELEASE

July 31, 2018

 

Quality Systems, Inc. Reports Fiscal 2019 First Quarter Results

IRVINE, Calif. – (BUSINESS WIRE) – Quality Systems, Inc. (QSII), known to its clients as NextGen Healthcare, announced today its fiscal 2019 first quarter ended June 30, 2018 operating results.

 

"We are pleased with continuing progress executing our plan, as illustrated by our team’s delivery of another solid performance in the first quarter of fiscal 2019 with revenue and EPS in-line with our expectations. Most importantly, we saw continued momentum in quarterly bookings with first quarter bookings up 23% year over year, which marks our second consecutive quarter of growth. Based on these results, we remain confident in the current year guidance and committed to our multi-year growth targets,” commented Rusty Frantz, president and chief executive officer of NextGen Healthcare.

 

Fiscal 2019 First Quarter Highlights

As a result of the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic 606 (“ASC 606”), the GAAP comparisons below compare fiscal 2019 first quarter results under ASC 606 to the fiscal 2018 first quarter results under ASC 605. A reconciliation of fiscal 2019 first quarter results from ASC 606 to ASC 605 can be found in the tables at the end of the press release.

 

On a GAAP basis, revenue for the fiscal 2019 first quarter of $133.2 million compared to $130.9 million a year-ago. On a pro forma basis under ASC 605, revenue for the fiscal 2019 first quarter was also $133.2 million. 

 

On a GAAP basis, net income for the fiscal 2019 first quarter was $2.6 million, compared with net income of $3.9 million in the fiscal 2018 first quarter. On a pro forma basis under ASC 605, net income for the fiscal 2019 first quarter was $1.7 million.

 

On a GAAP basis, fully diluted net income per share was $0.04 in the fiscal 2019 first quarter compared with earnings per share of $0.06 for the same period a year ago.  On a non-GAAP basis, fully diluted earnings per share for the fiscal 2019 first quarter was $0.19 versus $0.17 reported in the first quarter a year ago. On a pro forma non-GAAP basis under ASC 605, fully diluted earnings per share for the fiscal 2019 first quarter was $0.18.

 

Fiscal 2019 Financial Outlook

The company is reiterating its outlook for fiscal 2019 and expects:

 

Revenue of between $532 million and $548 million

 

Non-GAAP EPS of between $0.70 and $0.78

 

 

 


Conference Call Information

NextGen Healthcare will host a conference call to discuss its fiscal 2019 first quarter results on Tuesday, July 31, 2018 at 5:00 PM ET (2:00 PM PT). Shareholders and interested participants may listen to a live broadcast of the conference call by dialing 866-750-8947 or 720-405-1352 for international callers, and referencing participant code 2995586 approximately 15 minutes prior to the call. A live webcast of the conference call will be available on the investor relations section of the company’s web site and an audio file of the call will also be archived for 90 days at investor.qsii.com. After the conference call, a replay will be available until August 14, 2018 and can be accessed by dialing 800-585-8367 or 404-537-3406 for international callers, and referencing participant code 2995586.

 

2018 Analyst Day Meeting

The Company will host an Analyst Day Meeting on Friday, September 7, 2018 at 9:00 AM ET in New York, NY. To RSVP or for further information, please contact Jordan Kohnstam at Jordan.Kohnstam@westwicke.com or 443-450-4189.

 

About Quality Systems, Inc.

Quality Systems, Inc., known to its clients as NextGen Healthcare, provides a range of software, services, and analytics solutions to medical and dental group practices. The company's portfolio delivers foundational capabilities to empower physician success, enrich the patient care experience, and enable the transition to value-based healthcare. Visit www.qsii.com and www.nextgen.com for additional information.

 

Media Contact:
Jennifer Cohen, 949-255-2600x74334
jecohen@nextgen.com

or

Investor Contact:

Westwicke Partners

Bob East or Asher Dewhurst

Westwicke Partners

443-213-0500

 

 

SAFE HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS

This news release may contain forward-looking statements within the meaning of the federal securities laws, including but not limited to, statements regarding future events, developments in the healthcare sector and regulatory framework, 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, net income, and earnings per share). Risks and uncertainties exist that may cause the results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements and additional risks and uncertainties are set forth in Part I, Item A of our most recent Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q, including but not limited to: 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; impact of incentive payments under The American Recovery and Reinvestment Act on sales and the ability of the Company to meet continued certification requirements; uncertainties related to the future impact of U.S. tax reform; the impact of


governmental and regulatory agency investigations; the development by competitors of new or superior technologies; the timing, cost and success or failure of new product and service introductions, development and product upgrade releases; undetected errors or bugs in software; product liability; 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; changes of accounting estimates and assumptions used to prepare the prior periods' financial statements; disruptions caused by acquisitions of companies, products, or technologies; and general economic conditions. A significant portion of the Company's quarterly sales of software product licenses and computer hardware is concluded in the last month of a 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. These forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

 

USE OF NON-GAAP FINANCIAL MEASURES

This news release contains certain non-GAAP (Generally Accepted Accounting Principles) financial measures, which are provided only as supplemental information. Investors should consider these non-GAAP financial measures only in conjunction with the comparable GAAP financial measures. These non-GAAP measures are not in accordance with or a substitute for U.S. GAAP. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation of non-GAAP financial measures to the most directly comparable financial measure in the accompanying financial tables. Other companies may calculate non-GAAP measures differently than Quality Systems, which limits comparability between companies. The Company believes that its presentation of non-GAAP diluted earnings per share provides useful supplemental information to investors and management regarding the Company's financial condition and results. The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. The Company calculates non-GAAP diluted earnings per share by excluding net acquisition costs, amortization of acquired intangible assets, amortization of deferred debt issuance costs, restructuring costs, net securities litigation defense costs and settlement, share-based compensation, and other non-run-rate expenses from GAAP income before provision for income taxes. The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company’s longer-term operations.

 

The normalized non-GAAP tax rate applied to fiscal year 2019 was 22.0%, compared to 30.5% for fiscal year 2018, which was updated as a result of the enactment of the new tax reform legislation on December 22, 2017. The determination of this rate is based on the consideration of both historic and projected financial results. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occur that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations.

 

The Company’s future period guidance in this release includes adjustments for items not indicative of the Company’s core operations. Such adjustments are generally expected to be of a nature similar to those adjustments applied to the Company’s historic GAAP financial results in the determination of the Company’s non-GAAP diluted


earnings per share. Such adjustments, however, may be affected by changes in ongoing assumptions and judgments as to the items that are excluded in the calculation of non-GAAP adjusted net income and adjusted diluted earnings per share, as described in this release. The exact amount and probable significance of these adjustments, including net acquisition costs, net securities litigation defense costs, and other non-run-rate expenses, are not currently determinable without unreasonable efforts, but may be significant. These items cannot be reliably quantified or forecasted due to the combination of their historic and expected variability. It is therefore not practicable to reconcile this non-GAAP guidance to the most comparable GAAP measures.

 


TABLE #1

 

QUALITY SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

Three Months Ended June 30,

 

 

2018

 

 

2017

 

Revenues:

 

 

 

 

 

 

 

Recurring

$

120,007

 

 

$

119,178

 

Software, hardware, and other non-recurring

 

13,193

 

 

 

11,744

 

Total revenues

 

133,200

 

 

 

130,922

 

Cost of revenue:

 

 

 

 

 

 

 

Recurring

 

48,153

 

 

 

48,458

 

Software, hardware, and other non-recurring

 

7,154

 

 

 

6,040

 

Amortization of capitalized software costs and acquired intangible assets

 

6,544

 

 

 

4,671

 

Total cost of revenue

 

61,851

 

 

 

59,169

 

Gross profit

 

71,349

 

 

 

71,753

 

Operating expenses:

 

 

 

 

 

 

 

Selling, general and administrative

 

44,636

 

 

 

42,977

 

Research and development costs, net

 

22,128

 

 

 

19,989

 

Amortization of acquired intangible assets

 

1,168

 

 

 

2,047

 

Total operating expenses

 

67,932

 

 

 

65,013

 

Income from operations

 

3,417

 

 

 

6,740

 

Interest income

 

29

 

 

 

9

 

Interest expense

 

(730

)

 

 

(677

)

Other income (expense), net

 

374

 

 

 

(22

)

Income before provision for income taxes

 

3,090

 

 

 

6,050

 

Provision for income taxes

 

442

 

 

 

2,154

 

Net income

$

2,648

 

 

$

3,896

 

Net income per share:

 

 

 

 

 

 

 

Basic

$

0.04

 

 

$

0.06

 

Diluted

$

0.04

 

 

$

0.06

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

Basic

 

64,019

 

 

 

62,636

 

Diluted

 

64,054

 

 

 

62,643

 

 



TABLE #2

QUALITY SYSTEMS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

 

 

June 30, 2018

 

 

March 31, 2018

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

26,544

 

 

$

28,845

 

Restricted cash and cash equivalents

 

 

7,520

 

 

 

2,373

 

Accounts receivable, net

 

 

86,064

 

 

 

84,962

 

Contract assets

 

 

10,448

 

 

 

 

Inventory

 

 

161

 

 

 

180

 

Income taxes receivable

 

 

7,677

 

 

 

8,122

 

Prepaid expenses and other current assets

 

 

17,397

 

 

 

17,180

 

Total current assets

 

 

155,811

 

 

 

141,662

 

Equipment and improvements, net

 

 

26,567

 

 

 

26,795

 

Capitalized software costs, net

 

 

28,846

 

 

 

26,318

 

Deferred income taxes, net

 

 

6,249

 

 

 

9,219

 

Contract assets, net of current

 

 

2,768

 

 

 

 

Intangibles, net

 

 

68,636

 

 

 

74,091

 

Goodwill

 

 

218,875

 

 

 

218,875

 

Other assets

 

 

27,383

 

 

 

18,795

 

Total assets

 

$

535,135

 

 

$

515,755

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

3,133

 

 

$

4,213

 

Contract liabilities

 

 

52,196

 

 

 

54,079

 

Accrued compensation and related benefits

 

 

17,567

 

 

 

27,910

 

Income taxes payable

 

 

111

 

 

 

73

 

Other current liabilities

 

 

62,067

 

 

 

48,317

 

Total current liabilities

 

 

135,074

 

 

 

134,592

 

Contract liabilities, net of current

 

 

 

 

 

1,173

 

Deferred compensation

 

 

5,937

 

 

 

6,086

 

Line of credit

 

 

44,000

 

 

 

37,000

 

Other noncurrent liabilities

 

 

13,232

 

 

 

13,494

 

Total liabilities

 

 

198,243

 

 

 

192,345

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

Common stock

 

 

 

 

 

 

 

 

$0.01 par value; authorized 100,000 shares; issued and outstanding 64,220 and 63,995 shares at June 30, 2018 and March 31, 2018, respectively

 

 

642

 

 

 

640

 

Additional paid-in capital

 

 

247,374

 

 

 

244,462

 

Accumulated other comprehensive loss

 

 

(899

)

 

 

(400

)

Retained earnings (1)

 

 

89,775

 

 

 

78,708

 

Total shareholders' equity

 

 

336,892

 

 

 

323,410

 

Total liabilities and shareholders' equity

 

$

535,135

 

 

$

515,755

 

 

 

(1)

Includes cumulative effect adjustment related to the adoption of ASC 606.

 



TABLE #3

QUALITY SYSTEMS, INC.

NON-GAAP FINANCIAL MEASURES

(In thousands, except per share data)

 

 

RECONCILIATION OF NON-GAAP DILUTED EARNINGS PER SHARE

 

 

Three Months Ended June 30,

 

 

2018

 

 

2017

 

Income before provision for income taxes - GAAP

$

3,090

 

 

$

6,050

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

Acquisition costs, net

 

1,634

 

 

 

549

 

Amortization of acquired intangible assets

 

5,456

 

 

 

5,448

 

Amortization of deferred debt issuance costs

 

177

 

 

 

269

 

Securities litigation defense costs, net of insurance

 

279

 

 

 

446

 

Share-based compensation

 

3,116

 

 

 

2,041

 

Other non-run-rate expenses*

 

1,948

 

 

 

263

 

Total adjustments to GAAP income before provision for income taxes:

 

12,610

 

 

 

9,016

 

Income before provision for income taxes - Non-GAAP

 

15,700

 

 

 

15,066

 

Provision for income taxes

 

3,454

 

 

 

4,595

 

Net income - Non-GAAP

$

12,246

 

 

$

10,471

 

Diluted net income per share - Non-GAAP

$

0.19

 

 

$

0.17

 

Weighted-average shares outstanding (diluted):

 

64,054

 

 

 

62,643

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF NON-GAAP DILUTED EARNINGS PER SHARE UNDER ASC 605

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes - Non-GAAP

 

15,700

 

 

 

 

 

Adjustments due to adoption of ASC 606

 

(1,191

)

 

 

 

 

Income before provision for income taxes - Non-GAAP under ASC 605

 

14,509

 

 

 

 

 

Provision for income taxes

 

3,192

 

 

 

 

 

Net income - Non-GAAP under ASC 605

$

11,317

 

 

 

 

 

Diluted net income per share - Non-GAAP under ASC 605

$

0.18

 

 

 

 

 

Weighted-average shares outstanding (diluted):

 

64,054

 

 

 

 

 

 

 

 

 

 

 

 

 

* Other non-run-rate expenses for the three months ended June 30, 2018 consist primarily of severance and other employee-related costs not related to core operations. Other non-run-rate expenses for the three months ended June 30, 2017 consist primarily of professional services costs not related to core operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


We adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers: Topic 606 (“ASC 606”) and all related amendments as of April 1, 2018 using the modified retrospective method for all contracts not completed as of the date of adoption. Results for reporting periods beginning after April 1, 2018 are presented under ASC 606, while prior period comparative information has not been adjusted and continue to be reported under the accounting standards in effect for those prior periods. We have also implemented changes to our processes, policies, and internal controls over financial reporting to address the impacts of the new revenue recognition standard on our consolidated financial statements and related disclosures.

 

The adjustments to reflect the cumulative effect of the changes to the balances of our previously reported consolidated balance sheet as of March 31, 2018 for the adoption of ASC 606 are summarized as follows:

 

TABLE #4 – ASC 606 CUMULATIVE EFFECT ADJUSTMENT

 

 

As Reported

 

 

ASC 606 Transition

 

 

Adjusted

 

 

 

March 31, 2018

 

 

Adjustments

 

 

April 1, 2018

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

$

84,962

 

 

$

2,380

 

 

$

87,342

 

Contract assets

 

 

 

 

 

13,446

 

 

 

13,446

 

Prepaid expenses and other current assets

 

 

17,180

 

 

 

(223

)

 

 

16,957

 

Deferred income taxes, net

 

 

9,219

 

 

 

(2,884

)

 

 

6,335

 

Contract assets, net of current

 

 

 

 

 

2,731

 

 

 

2,731

 

Other assets

 

 

18,795

 

 

 

6,679

 

 

 

25,474

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Contract liabilities

 

 

54,079

 

 

 

4,174

 

 

 

58,253

 

Accrued compensation and related benefits

 

 

27,910

 

 

 

745

 

 

 

28,655

 

Other current liabilities

 

 

48,317

 

 

 

9,964

 

 

 

58,281

 

Contract liabilities, net of current

 

 

1,173

 

 

 

(1,173

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Retained earnings

 

 

78,708

 

 

 

8,419

 

 

 

87,127

 

 

 

The impact of the adoption of ASC 606 on our consolidated balance sheet and consolidated statements of net income and comprehensive income as of and for the three months ended June 30, 2018, assuming that the previous revenue recognition guidance in ASC 605 had been in effect, is summarized as follows:

 

TABLE #5 – ASC 606 IMPACT OF ADOPTION – BALANCE SHEET

 

 

 

June 30, 2018

 

 

 

As reported under

 

 

Adjustments due to

 

 

As disclosed under

 

 

 

ASC 606

 

 

adoption of ASC 606

 

 

ASC 605

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

$

86,064

 

 

$

6,685

 

 

$

92,749

 

Contract assets

 

 

10,448

 

 

 

(10,448

)

 

 

 

Income taxes receivable

 

 

7,677

 

 

 

246

 

 

 

7,923

 

Prepaid expenses and other current assets

 

 

17,397

 

 

 

344

 

 

 

17,741

 

Deferred income taxes, net

 

 

6,249

 

 

 

2,884

 

 

 

9,133

 

Contract assets, net of current

 

 

2,768

 

 

 

(2,768

)

 

 

 

Other assets

 

 

27,383

 

 

 

(7,703

)

 

 

19,680

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Contract liabilities

 

 

52,196

 

 

 

6,241

 

 

 

58,437

 

Accrued compensation and related benefits

 

 

17,567

 

 

 

(158

)

 

 

17,409

 

Other current liabilities

 

 

62,067

 

 

 

(8,658

)

 

 

53,409

 

Contract liabilities, net of current

 

 

 

 

 

1,179

 

 

 

1,179

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Retained earnings

 

 

89,775

 

 

 

(9,364

)

 

 

80,411

 

 

 



TABLE #6 – ASC 606 IMPACT OF ADOPTION – INCOME STATEMENT

 

 

Three Months Ended June 30, 2018

 

 

 

As reported under

 

 

Adjustments due to

 

 

As disclosed under

 

 

 

ASC 606

 

 

adoption of ASC 606

 

 

ASC 605

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Subscription services

 

$

28,328

 

 

$

(1,575

)

 

$

26,753

 

Support and maintenance

 

 

41,248

 

 

 

(698

)

 

 

40,550

 

Managed services

 

 

26,270

 

 

 

3,033

 

 

 

29,303

 

Electronic data interchange and data services

 

 

24,161

 

 

 

(73

)

 

 

24,088

 

Total recurring revenues

 

 

120,007

 

 

 

687

 

 

 

120,694

 

Software license and hardware

 

 

7,443

 

 

 

(567

)

 

 

6,876

 

Other non-recurring services

 

 

5,750

 

 

 

(74

)

 

 

5,676

 

Total software, hardware, and other non-recurring revenues

 

 

13,193

 

 

 

(641

)

 

 

12,552

 

Total revenue

 

 

133,200

 

 

 

46

 

 

 

133,246

 

Total cost of revenue

 

 

61,851

 

 

 

40

 

 

 

61,891

 

Gross profit

 

 

71,349

 

 

 

6

 

 

 

71,355

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

44,636

 

 

 

1,197

 

 

 

45,833

 

Research and development costs, net

 

 

22,128

 

 

 

 

 

 

22,128

 

Amortization of acquired intangibles

 

 

1,168

 

 

 

 

 

 

1,168

 

Total operating expenses

 

 

67,932

 

 

 

1,197

 

 

 

69,129

 

Income from operations

 

 

3,417

 

 

 

(1,191

)

 

 

2,226

 

Interest and other income, net

 

 

(327

)

 

 

 

 

 

(327

)

Income before provision for income taxes

 

 

3,090

 

 

 

(1,191

)

 

 

1,899

 

Provision for income taxes

 

 

442

 

 

 

(246

)

 

 

196

 

Net income

 

$

2,648

 

 

$

(945

)

 

$

1,703

 

 

 

The following table presents our revenues disaggregated by our major revenue categories and by occurrence on a pro forma basis under ASC 605:

 

TABLE #7 – PRO FORMA REVENUES UNDER ASC 605

 

Three Months Ended,

 

 

June 30, 2017

 

 

September 30, 2017

 

 

December 31, 2017

 

 

March 31, 2018

 

 

June 30, 2018

 

Recurring revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription services

$

25,575

 

 

$

26,788

 

 

$

26,596

 

 

$

27,366

 

 

$

26,753

 

Support and maintenance

 

41,116

 

 

 

41,693

 

 

 

40,362

 

 

 

40,634

 

 

 

40,550

 

Managed services

 

29,175

 

 

 

27,962

 

 

 

28,903

 

 

 

27,271

 

 

 

29,303

 

Electronic data interchange and data services

 

23,312

 

 

 

22,998

 

 

 

23,136

 

 

 

23,327

 

 

 

24,088

 

Total recurring revenues

 

119,178

 

 

 

119,441

 

 

 

118,997

 

 

 

118,598

 

 

 

120,694

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software, hardware, and other non-recurring revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software license and hardware

 

7,420

 

 

 

8,853

 

 

 

7,759

 

 

 

9,985

 

 

 

6,876

 

Other non-recurring services

 

4,324

 

 

 

4,313

 

 

 

4,959

 

 

 

7,192

 

 

 

5,676

 

Total software, hardware and other non-recurring revenues

 

11,744

 

 

 

13,166

 

 

 

12,718

 

 

 

17,177

 

 

 

12,552

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

130,922

 

 

$

132,607

 

 

$

131,715

 

 

$

135,775

 

 

$

133,246

 

 



Effective April 1, 2018, in addition to the adoption of ASC 606, we changed the presentation of revenue on our consolidated statements of comprehensive income. The following table presents a mapping of our revenues as previously reported and on a pro forma basis under ASC 605:

 

TABLE #8 – IMPACT OF INCOME STATEMENT RECLASSIFICATION

 

Three Months Ended,

 

 

June 30, 2017

 

 

September 30, 2017

 

 

December 31, 2017

 

 

March 31, 2018

 

 

June 30, 2018

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software license and hardware - As previously reported

$

12,800

 

 

$

14,267

 

 

$

13,131

 

 

$

15,378

 

 

$

12,388

 

Annual licenses - reclassified to 'Subscription services'

 

(5,380

)

 

 

(5,414

)

 

 

(5,372

)

 

 

(5,393

)

 

 

(5,512

)

Software license and hardware

 

7,420

 

 

 

8,853

 

 

 

7,759

 

 

 

9,985

 

 

 

6,876

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software related subscription services - As previously reported

 

23,906

 

 

 

24,988

 

 

 

24,690

 

 

 

25,963

 

 

 

25,622

 

Annual licenses - reclassified from 'Software license and hardware'

 

5,380

 

 

 

5,414

 

 

 

5,372

 

 

 

5,393

 

 

 

5,512

 

Managed cloud services - reclassified to 'Managed services'

 

(3,711

)

 

 

(3,614

)

 

 

(3,466

)

 

 

(3,990

)

 

 

(4,381

)

Subscription services

 

25,575

 

 

 

26,788

 

 

 

26,596

 

 

 

27,366

 

 

 

26,753

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue cycle management and related services - As previously reported

 

21,403

 

 

 

21,002

 

 

 

21,922

 

 

 

19,669

 

 

 

21,323

 

Managed cloud services - reclassified from 'Software related subscription services'

 

3,711

 

 

 

3,614

 

 

 

3,466

 

 

 

3,990

 

 

 

4,381

 

Transcription and other recurring services - reclassified from 'Professional services'

 

4,061

 

 

 

3,346

 

 

 

3,515

 

 

 

3,612

 

 

 

3,599

 

Managed services

 

29,175

 

 

 

27,962

 

 

 

28,903

 

 

 

27,271

 

 

 

29,303

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional services - As previously reported

 

8,385

 

 

 

7,659

 

 

 

8,474

 

 

 

10,804

 

 

 

9,275

 

Transcription and other recurring services - reclassified to 'Professional services'

 

(4,061

)

 

 

(3,346

)

 

 

(3,515

)

 

 

(3,612

)

 

 

(3,599

)

Other non-recurring services

 

4,324

 

 

 

4,313

 

 

 

4,959

 

 

 

7,192

 

 

 

5,676

 

 

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