Provider of Electronic Health Record (EHR) services,
Quality Systems
(
QSII
) recently revealed that it received as many as seven bronze, five
silver and two gold Stevie awards at the Tenth Annual American
Business Awards.
The Stevie Awards are given in four categories: The International
Business Awards, the Stevie Awards for Women in Business, the
Stevie Awards for Sales & Customer Service and The American
Business Awards.
The American Business Awards are among the foremost business awards
program in the country. Entities functioning in the U.S., including
private and public, non-profit and commercial, may vie for
selection. This year, the event attracted 3,000 entries in over 100
categories.
Quality Systems won two gold awards, one of which was for executive
of the year and the other for a marketing brochure. The awards
ceremony was held in New York City on June 18, 2012. The award
winners were chosen by 270 executives who took part in the
selection process.
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. On the positive side, we
observe the high proportion of recurring revenues. Of late,
however, growth of its pipeline metric has seen a falling trend
along with progressively lower number of signed deals on a
quarterly basis.
The company 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 execution risk
emanating from Quality Systems' entry into the rural inpatient
market.
Moreover, 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.
Our Underperform recommendation is supported by a short-term Zacks
#5 Rank (Strong Sell).
ATHENAHEALTH IN (ATHN): Free Stock Analysis
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CERNER CORP (CERN): Free Stock Analysis Report
ALLSCRIPTS HLTH (MDRX): Free Stock Analysis
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QUALITY SYS (QSII): Free Stock Analysis Report
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