CPSI 2017 Annual Report

41 Results of Operations The following table sets forth certain items included in our results of operations for each of the three years in the period ended December 31, 2017, expressed as a percentage of our total revenues for these periods: Year ended December 31, 2017 2016 2015 (In thousands) Amount % Sales Amount % Sales Amount % Sales INCOME DATA: Sales revenues: System sales and support: Acute Care EHR . . . . . . . . . . . . . . $ 164,228 59.3 % $ 159,146 59.5 % $ 118,385 65.0% Post-acute Care EHR. . . . . . . . . . . 24,033 8.7 % 26,519 9.9 % — —% Total system sales and support. . . . . 188,261 68.0 % 185,665 69.5 % 118,385 65.0% TruBridge . . . . . . . . . . . . . . . . . . . . . 88,666 32.0 % 81,607 30.5 % 63,789 35.0% Total sales revenues . . . . . . . . . . . . . . 276,927 100.0 % 267,272 100.0 % 182,174 100.0% Costs of sales: System sales and support: Acute Care EHR . . . . . . . . . . . . . . 68,513 24.7 % 74,746 28.0 % 52,500 28.8% Post-acute Care EHR. . . . . . . . . . . 7,481 2.7 % 9,610 3.6 % — —% Total system sales and support. . . . . 75,994 27.4 % 84,356 31.6 % 52,500 28.8% TruBridge . . . . . . . . . . . . . . . . . . . . . 49,636 17.9 % 45,656 17.1 % 35,216 19.3% Total costs of sales . . . . . . . . . . . . . . . 125,630 45.4 % 130,012 48.6 % 87,716 48.1% Gross profit. . . . . . . . . . . . . . . . . . . . . 151,297 54.6 % 137,260 51.4 % 94,458 51.9% Operating expenses: Product development . . . . . . . . . . . . 37,761 13.6 % 32,621 12.2 % 14,229 7.8% Sales and marketing . . . . . . . . . . . . . 33,021 11.9 % 27,194 10.2 % 18,333 10.1% General and administrative . . . . . . . 46,923 16.9 % 52,888 19.8 % 36,810 20.2% Amortization of acquisition-related intangibles . . . . . . . . . . . . . . . . . . . . 10,406 3.8 % 10,182 3.8 % — —% Goodwill impairment . . . . . . . . . . . . 28,000 10.1 % — — % — —% Total operating expenses . . . . . . . . . . 156,111 56.4 % 122,885 46.0 % 69,372 38.1% Operating income (loss) . . . . . . . . . . . (4,814) (1.7)% 14,375 5.4 % 25,086 13.8% Other income (expense): Other income . . . . . . . . . . . . . . . . . . 407 0.1 % 220 0.1 % 405 0.2% Loss on extinguishment of debt . . . . (1,340) (0.5)% — — % — —% Interest expense . . . . . . . . . . . . . . . . (7,736) (2.8)% (6,609) (2.5)% — —% Total other income (expense) . . . . . . . (8,669) (3.1)% (6,389) (2.4)% 405 0.2% Income (loss) before taxes . . . . . . . . . (13,483) (4.9)% 7,986 3.0 % 25,491 14.0% Provision for income taxes . . . . . . . . . 3,933 1.4 % 4,053 1.5 % 7,148 3.9% Net income (loss) . . . . . . . . . . . . . . . . $ (17,416) (6.3)% $ 3,933 1.5 % $ 18,343 10.1%