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| QSI Performance |
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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:
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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. |
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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.
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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. |
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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. |
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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. |
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