QUALITY SYSTEMS INC. ANNUAL REPORT 2001 A Higher IQ For Healthcare IT. A H i g h e r I Q f o r H e a l t h c a r e I T . $39.9 MicroMed $33.8 $36.4 QSI $17.4 $14.4 $22.7 $19.4 $19.0 $17.2 $3.8 $2.8 $5.2 $18.5 $15.9 $14.2 $5.0 $0.57 $3.6 $0.40 $0.9 $0.09 1999 2000 2001 1999 2000 2001 1999 2000 2001 1999 2000 2001 1999 2000 2001 Revenue (in millions) EDI Revenue (in millions) Cash and Cash Equivalents (in millions) Operating Income (in millions) Earnings per Share (in cents) L e t t e r t o S h a r e h o l d e r s Fiscal 2001 was a year of notable accomplishment for QSI. In particular: • The Company earned a record $.57 a share, up 42.5% from the $.40 a share earned in the prior year. • The $40 million in revenues generated by the Company during the year was also a record. Quarterly revenues exceeded $10 million for the first time in Company history during both Q3 and Q4. • We enjoyed four consecutive quarters of record sales of our award-winning NextGen(cid:2) products as well as our EDI/Connectivity product line. Revenues for each grew 30% over the prior year. • Many important product development initiatives came to fruition during the year, and our development queue remains overflowing. Particularly notable progress was made in our NextGenpda, NextGenemr, NextGenepm, QUIC, CPS, DataMiner, and QSI Sequoia products/projects. During the year the Company benefited greatly from the outstanding performance of its sales, development, operations, and administrative teams. Particular thanks are in order for the entire NextGen and EDI teams. To all of these individuals as well as our shareholders and clients, know that your commitment is never taken for granted. Thanks to all for your support during the past year. We will continue to strive to earn your confidence in the coming year and beyond. Sincerely, Lou Silverman President and CEO m o c . s r o n n o c - n a r r u c . w w w / . c n I , s r o n n o C & n a r r u C y b d e n g i s e D C o m p a n y P r o f i l e T i m e l i n e Serving the dental and medical group practice markets through the QSI and NextGen(cid:2) product lines, Quality Systems, Inc. and its MicroMed Healthcare Information Systems Division are well-established developers and providers of computer-based practice management, medical records and connectivity applications. Visit www.qsii.com and www.nextgen.com for additional information. Fiscal 2001 Record MicroMed/NextGen and EDI quarterly revenues. September 2000 April 2000 NextMD.com introduced. June 2000 Record MicroMed/NextGen and EDI quarterly revenues. December 2000 Quarterly records set for Company, MicroMed/NextGen and EDI revenues; Company EPS. MicroMed/NextGen enters TEPR software competition; earns two first-place awards. March 2001 NextGenpda introduced at HIMSS. February 2001 March 2001 Quarterly and FY records set for Company, MicroMed/NextGen and EDI revenues; Company EPS. C o r p o r a t e I n f o r m a t i o n OFFICERS OF THE COMPANY LEGAL COUNSEL Louis Silverman President, Chief Executive Officer Rutan & Tucker LLP Costa Mesa, California INDEPENDENT AUDITORS Deloitte & Touche LLP Costa Mesa, California REGISTRAR AND TRANSFER AGENT U.S. Stock Transfer Corporation Glendale, California INVESTOR RELATIONS CONSULTANTS Coffin Communications Group Sherman Oaks, California 818.789.0100 FORM 10-K A copy of the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission is available through the Company’s website at www.qsii.com or without charge by contacting the Company at the address below. Patrick Cline President MicroMed Healthcare Information Systems Division Greg Flynn Executive Vice President, General Manager Quality Systems Division Paul Holt Chief Financial Officer, Secretary DIRECTORS OF THE COMPANY Sheldon Razin Chairman of the Board Ahmed Hussein Co-Chairman of the Board Mohammed Tawfick El-Bardai CEO National Telecommunications Corporation Emad Zikry President and CEO ARM Capital Advisors, LLC Dale Hanson CEO American Partners Capital Group Frank Meyer President Glenwood Holdings William Small Independent Management Consultant NextGen MicroMed Healthcare Information Systems (cid:2) CORPORATE HEADQUARTERS DIVISION LOCATIONS 17822 East 17th Street Suite 210 Tustin, California 92780 714.731.7171 www.qsii.com 200 Welsh Road First Floor Horsham, Pennsylvania 19044 215.657.7010 3414 Peachtree Road NE Suite 660 Atlanta, Georgia 30326 404.467.1500 www.nextgen.com