Quality Systems Inc F3Q09 (Qtr End 12/31/08) Earnings Call Transcript

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2009-01-30 11:30:30.0

Tags: Oppenheimer & Co., Call Transcript, Earnings, Taxes, Free Trade, Personal Finance, Operational Accounting, Financial Planning, Finance, Seeking Alpha, Quality Systems Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Charles Rhyee - Oppenheimer & Company.

Charles Rhyee - Oppenheimer & Company

Oppenheimer & Company. Just a couple of questions here. First, Paul I think you’re talking about the revenues here in the NextGen Division, it looks like implementation and training service revenues were down in the quarter and am I thinking about that correctly? Can you sort of touch on why we might have seen that?

Paul Holt

Sure, well there is some seasonality to the implementation revenue in the December quarter and this particular quarter, the way the holidays fell out that was particularly, made things a little bit even more difficult for us to render some of those implementation services. This is a joint effort implemented systems and sometimes the calendar can get in the way. I thing Pat may have a couple of other comments on that as well.

Pat Cline

Yes, I would echo what Paul said with Thanksgiving and Christmas and New Years’ in particular Christmas and New Years falling kind of mid-week, a lot of customers don’t want to have trainers in their offices at that time that touch it down a little bit. The only other thing I would add is that over the last couple of years as I’ve said on one or two other calls, we have been really trying as a company to make our systems easier to use and easier to implement and I think we have seen some success in that area and in the past talked about some initiatives like our computer based training and those kinds of things.

So, while I think most of the slight decline is just the seasonality issue that we discussed. I hope that we’re also being successful and that our systems are requiring a little bit fewer hours to implement, because that in the longer-term is what will allow us to scale.

Charles Rhyee - Oppenheimer & Company

Great and another question here, I think you’re talking about the tax rate it looks like and that’s a little bit lower than we are looking for and I think Paul, you just mentioned some unrealized losses on the auction-rate securities and does that, do you get a tax benefit in the quarter from that? Is that why we see maybe down in our tax rate from last quarter or was that just the R&D credit?

 

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