Quality Systems 2008 Proxy Contest vs. Ahmed Hussein
 
 
 
QSI Performance
 
Quality Systems Inc.’s Board nominees and management have a strategy to expand the business – and it is working.

Under the leadership of our board nominees, Quality Systems intends to continue developing and enhancing our leading software solutions in our current markets and we will seek to expand into new markets where we believe, based upon market knowledge, we can capture meaningful market share. We will continue to make prudent, disciplined investments, and we will seek new ways to grow our existing customer relationships while pursuing new ones. Organic growth will remain our top priority but we will also continue to pursue opportunistic acquisitions to complement our existing products, services and strategy.
 
Our incumbent Board nominees and our management team have proven that they have the vision and skills to grow the business and position it for continued success.
 
Consider the following facts about the company and its performance:

Strong track record of organic growth and profitability: Over the five fiscal years ended March 31, 2008, Quality Systems’ revenues increased at a compounded average growth rate of 28% and its earnings per share increased at a compounded annual growth rate of 39%. Quality Systems is among the most profitable companies in its market segment with net income margins exceeding 21% in each of the last two fiscal years.
   
Excellent cash flow generation: Quality Systems continues to generate extremely strong cash flow from its operations, allowing it to invest for future growth and return money to shareholders. The company generated approximately $43.6 million in cash flow from operations in the year ended March 31, 2008, representing a five-year compounded average growth rate of 27%, among the strongest of our peers.
   
Regular quarterly dividend payments. As a result of our strong financial performance, we have been able to return a steady dividend to shareowners. Over the five years ended March 31, 2008, we have returned a total of $3.625 per share to investors in dividends. The company also recently increased the dividend from $0.25/share to $0.30/share.
   
Stock price outperformance: Our share price increased approximately 386% between June 30, 2003 and June 30, 2008, dramatically outperforming the NASDAQ Composite Index, the NASDAQ Computer and Data Processing Index and the William Blair Healthcare Information Technology Index.
   
Exemplary Corporate Governance Record: Our Board is committed to strong governance practices and Quality Systems’ corporate governance practices are strongly pro-shareholder. For example, our governance structure includes an annually-elected Board, cumulative voting rights and rights of shareholders to call meetings and act by written consent, and the company has no “poison pill” rights plan. Our corporate governance provisions meet or exceed NASDAQ requirements, and all of our nominees, except for Mr. Cline and now Mr. Plochocki (who are current members of our management team) are independent under these criteria.
 

Letters to Shareholders & Press Releases

Response to Mr. Hussein’s 13D
Response to Mr. Hussein's Proxy Materials
QSI Performance
Investor Presentation
Hussein’s 2005 Attempt
Background on Mr. Hussein
Background on Mr. Razin
Voting Instructions
Contact Our Proxy Solicitor
QSI 2008 Proxy Statement
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