Quality Systems beats revenue forecasts entirely due to acquisition-based revenue. EPS a penny better. System sales were $1 mil light.
Receivables jumped to 100 mil, an 11% increase and in line with sales. DSOs remained flat at 138 days. Deferred revenue grew roughly 3% sequentially. Upside to maintenance revenues without corresponding growth in deferred. Cash dropped by roughly 10 mil sequentially to ~55 mil reflecting the growth in receivables. If they don’t start to get paid, they’re going to need to raise cash.
Analysts are excited about the potential benefits of fiscal stimulus in the healthcare vertical. Expect it to be the focus of q&a.
Conference call at 9.