Quality Systems / TUSTIN

Nature of business: Designs, installs and supports medical office information systems. Total employees: 108 In Orange County: 90 Stock listing in The Times: On NASDAQ as “QualSys” Ticker symbol: “QSII” Friday’s stock close: $2.25 One-week change: Down $0.25

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Analyst review: “Quality Systems is involved in an industry that has plenty of room for growth. Medical billing and information systems are part of an infrastructure overlooked by health-care industry investors. Doctors and hospitals are under pressure to reduce costs and a streamlined billing and record-keeping system would help them reduce clerical staff and improve cash flow. Even more important is the emerging practice of integrating providers and insurance carriers into an automated and standardized billing network. This is an area that is just beginning to develop and it will be interesting to see how companies like Quality Systems take advantage of it.”

--Doris Banchik, analyst L.H. Friend, Weinress & Frankson Newport Beach SALES VS. PROFITS Chart amount in millions

Fiscal year ending Mar. 31 Mar. 31 Mar. 31 Mar. 31 Mar. 31 1989 1990 1991 1992 1993 Revenue $8.8 $9.6 $13.1 $11.7 $11.6 Profit $(.314) $(.850) $(.352) $(.199) $.623

* Corporate outlook: “We completed our fiscal year with our fifth consecutive profitable quarter. We emerged from a series of year-end losses by carefully scrutinizing our operations for ways to streamline. The increasing pressure on physicians to reduce costs has helped us recently. They are starting to evaluate aspects of their business that were previously ignored, including claims processing and billing. We are excited about adding HMOs to our client base and working to link health care providers and insurance carriers into an electronic billing and payment network with our computers as the go-between.”

--Sheldon Razin, chairman and president

* 5-YEAR SUMMARY: RETURN ON STOCKHOLDER INVESTMENT

Fiscal year ending Mar. 31 Mar. 31 Mar. 31 Mar. 31 1989 1990 1991 1992 52-week high $2.63 $2.50 $2.63 $2.38 52-week low $0.88 $1.25 $1.63 $1.38 Book value per share $1.74 $1.52 $1.45 $1.40 Price per share $1.75 $1.50 $2.13 $1.38 Net profit per share N/A N/A N/A N/A Price-to-earnings ratio N/A N/A N/A N/A Avg. return on investor equity N/A N/A N/A N/A

Fiscal year ending Mar. 31 1993 52-week high $2.00 52-week low $1.00 Book value per share $1.55 Price per share $1.63 Net profit per share $0.15 Price-to-earnings ratio 10:1 Avg. return on investor equity 9.5%

For more information call or write, Quality Systems, 17822 E. 17th St., Tustin, CA 92680. (714) 731-7171.