Quality Systems Inc. announced that it is performing a review of certain long-lived assets within its Hospital Solutions Division, and expects to record a non-cash charge for the impairment of certain long-lived assets in its fiscal 2014 third quarter ended December 31, 2013. While the company has not yet determined the amount of the charge, the long-term assets within the Hospital Solutions Division that are under impairment review have an aggregate net book value of approximately $30 million. The amount of the impairment charge is expected to be a portion or all of the long-term assets of the Hospital Solutions Division. The impairment review stems from the operating results of the Hospital Solutions Division, which has performed below internal expectations, while the company continues to significantly invest in customer satisfaction, development and infrastructure and has experienced a slowing of system sales.

The company also announced that, based on a preliminary review of its financial results, its results will be below analysts' consensus expectations for revenues and earnings per share, for the company's fiscal 2014 third quarter ended December 31, 2013. Impacting the results were several factors, including: lower-than-anticipated results from the Hospital Solutions Division; a reduction in capitalized software development costs; and, increased amortization of capitalized software development costs relating to the release of NextGen(R) Ambulatory EHR version 5.8 and 8.3, which occurred during the quarter. Any impairment charge related to the long-lived assets of the Hospital Solutions Division could also adversely impact third quarter results.