Quality Systems Inc.
), a player in the health care information technology market,
revealed that it won two gold, four silver and six bronze Stevie
awards at the 11th Annual American Business Awards.
Quality Systems was awarded a gold medal in the Health
Products and Services entry. It won a second gold medal in the
category of Best Marketing or Sales Brochure or Kit.
The American Business Awards are the country's leading
business awards event. All entities, including commercial or
non-profit, private or public, big or small may submit their
entries. This year the committee received over 3,200 entries.
The American Business Awards in 2013 are handed out at two
ceremonies. The first event took place on Jun 17, 2013 in
Chicago. The second awards ceremony is scheduled to occur on Sep
16 at San
Quality Systems runs a pure-play business model in an industry
with a number of catalysts, which provoke frequent speculation
about mergers and acquisitions. We however note that the
condition of its pipeline metric has not been too encouraging
QSII has made multiple acquisitions to bolster organic growth.
Its acquisitions are expected to facilitate its entry in the
small hospital segment. We are concerned about the execution risk
emanating from Quality Systems' entry into the rural inpatient
Moreover, competition is intense from well-regarded players
) 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. While fresh projects have
shrunk in number, the replacement market is growing.
Quality Systems has traditionally focused on providing
solutions for physician practices. However, core ambulatory EHR
providers such as Quality Systems will see opportunities for
product sales shrink, as physician groups are increasingly
absorbed into hospitals.
Currently, Quality Systems retains a Zacks Rank #5 (Strong
Sell). We expect other stocks in the industry, such as
), which carries a Zacks Rank #2 (Buy), to do well.
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QUALITY SYS (QSII): Free Stock Analysis
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