Quality Systems, QlikTech earnings reports
What are probably the two hottest publicly traded tech companies with a major presence in the Philadelphia area announced quarterly results yesterday.
Quality Systems, Inc. is not actually based here, but in Irvine, CA, though virtually all of its revenue generating business comes out of its Horsham-based NextGen Healthcare unit. NextGen provides electronic health record (EHR) systems to health practices and hospitals, though it has historically gotten most of its business from smaller practices. It has benefitted from the up to $19 billion in subsidies offered through the HITECH Act (part of the stimulus package) that go to physicians who convert to electronic records and achieve what the government defines as "Meaningful Use".
In its Q1 2012 results reported yesterday, Quality Systems announced its first $100 million quarter, as revenue grew 21% and net income increased 57%, beating estimates. The company also announced that its Board had approved a two-for-one stock split. Quality Systems is now trading at $89.30, giving it a market value of $2.6 billion.
The other significant announcement yesterday is that Quality Systems' President (and former NextGen President), Patrick B. Cline, is retiring at the end of the year. Cline, who is a fairly young guy, said during NextGen's conference call that his only plans for now were to spend more time with his family, although he might consider taking on something else in the future. Cline co-founded Clinitec, based in Horsham, in 1994; it was acquired by Quality Systems two years later and became the foundation of NextGen Healthcare. Cline is widely respected in the industry. No successor has been named.
QlikTech, the Radnor-based in-memory Business Intelligence vendor that did its IPO a year ago, announced that revenue grew 45% in its second quarter to $74 million. The company posted a small GAAP loss (and a tiny non-GAAP profit) as it continued to push the accelerator down to achieve growth. Headcount is now at 967, up 49% from a year ago, of which over 100 are based in Radnor, a company spokeperson says. (QlikTech was started in Sweeden before moving its headquarters here).
QlikTech now has 21,000 customers, up from 15,000 a year ago, and is seeing more deals in excess of $100,000, from both new and existing customers. As it moves more into the core of the enterprise, QlikTech has needed to enhance its higher level sales resources. It announced yesterday that it had named Joe DiBartolomeo as President of the Americas. DiBartolomeo was a long-time Oracle exec who most recently was heading a unit at Dun & Bradstreet.
QlikTech raised its revenue guidance for 2011; it now expects revenue in excess of $300 million. However, QlikTech also raised its full year operating expense outlook. While it is aggressively spending and expanding to go after the large market opportunity it sees, there are certainly some analysts who have concerns about the expense growth rate and think that maybe a $300 million software company ought to be showing a little more profit.
QlikTech is now trading at over $30, up about 5% on the day, and its market value is $2.45 billion.
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