Leading EHR and health care IT (“HCIT”) provider Quality Systems (QSII) recently reported that it was declared winner in four categories of the International Business Awards, a part of the Stevie Awards. This awards program recognizes employees and companies globally for their contributions to business. The awards were handed out at a gala ceremony in Abu Dhabi, United Arab Emirates.
The company was bestowed the following awards at the competition: chief IT executive of the year; company of the year in the computer services segment; victorious in the Video & Film Awards category and honored with the top position in the People’s Choice Awards for the favorite computer services firm.
The International Business Awards are the sole worldwide all aspects business awards program recognizing superior performances in business. Entities from across the world were entitled to submit their entries including companies that are private or public, large or small and for-profit or non-profit. The organizers received over 3,000 entries, from 50 countries, for consideration in more than 40 categories. In the end, entities from 35 nations were declared winners in the competition.
The Stevie Awards are bestowed in 4 classes: The International Business Awards, The American Business Awards, The Stevie Awards for Sales and Customer Service and The Stevie Awards for Women in Business. The Stevies honor superior workplace performance.
Quality Systems runs a pure-play business model, in an attractive industry, with a large number of catalysts, which provoke frequent speculation about mergers and acquisition. In recent times, the company has not only well managed its ambulatory clinical deals but, in addition, has nicely executed several enterprise contracts. Also, on the positive side, we derive comfort from the high proportion of recurring revenues and steady growth in its NextGen pipeline.
Quality Systems’ fully owned subsidiary NextGen Healthcare Information Systems recently revealed that it has inked an agreement with Dell (DELL) to sell sophisticated technology solutions for medical practices of different sizes, physician networks as well as community and rural inpatient settings.
However, competition is intense from well regarded players such as Athenahealth (ATHN), Allscripts Healthcare Solutions (MDRX), Cerner Corporation (CERN) and others. Price discounting is frequent, particularly on the lower end, and Software as a Service (SaaS) based model appears to have exacerbated pricing pressure.
Quality Systems has traditionally focused on providing solutions for physician practices. However, core ambulatory EHR providers, such as Quality Systems, will see opportunities shrinking for selling their products as physician groups are increasingly getting absorbed into hospitals.
In the end, we believe that Quality Systems provides only a moderate upside to investor expectations. The company’s performance does not sustain its valuation momentum at present, which has boosted its earnings multiple. We believe that Quality Systems is one of the more expensive names in the healthcare IT universe.
ATHENAHEALTH IN (ATHN): Free Stock Analysis Report
CERNER CORP (CERN): Free Stock Analysis Report
DELL INC (DELL): Free Stock Analysis Report
ALLSCRIPTS HLTH (MDRX): Free Stock Analysis Report
QUALITY SYS (QSII): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment