2 Quality Systems, Inc. In a year where many were talking about the so-called “jobless recovery,” we increased the size of our team by just over 20%. The majority of this increase  was in our NextGen division. As for our more tenured employees, two staff members celebrated their 20th anniversary with the Company in 2004, bringing to nine the number of current team members who have invested in excess of twenty years with the Company—equal parts a tribute to their loyalty to the Company, their continued willingness and ability to perform, and the Company’s endurance in the often volatile HCIT arena. To all team members who were with us throughout the fiscal year, many thanks for your contributions. To our new(er) additions, I thank you for your contributions to date, and know that you will join our “veterans” in seeking and implementing ways to work even smarter and harder during FY 2005. While we were fortunate in FY 2004 to count many more achievements than disappointments, I regret that our acquisition search process did not yield any tangible results during the year, and that the acquisition pipeline was (and is) less robust than I would have hoped for. While there was (and is) no shortage of acquisition candidates in the marketplace, interesting acquisition candidates were fewer and further between than I had anticipated. Another area where our performance was less than I had hoped for was in  the growth of the NextGen sales staff. During the course of the fiscal year, our complement of quota carrying sales reps increased, but more growth would have been optimal. However, the team that we had in place during the course of the year turned in an outstanding performance. Looking back, FY 2004 was a successful year for the Company. Looking  forward, our team remains enthusiastic about its ability to compete effectively in our market(s). On behalf of our entire team, I thank you for the confidence you have placed in us. We hope to continue to earn your trust. Looking back,  FY 2004 was a  successful year  for the Company. 45 % growth in earnings per share Louis Silverman President & Chief Executive Officer