-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, C4ei9zPt+o7zM4fKcDtkdQh8E45ZEjWcF1OPHp5JMn301Ni5mFchJ65mn0awhHwz K7zx+f19/GA9F+wyHaQ2lw== 0001116679-01-500560.txt : 20010817 0001116679-01-500560.hdr.sgml : 20010817 ACCESSION NUMBER: 0001116679-01-500560 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20010816 GROUP MEMBERS: CANNELL CAPITAL LLC GROUP MEMBERS: GEORGE S. SARLO 1995 CHARITABLE REMAINDER TRUST GROUP MEMBERS: GS CANNELL, LLC GROUP MEMBERS: J. CARLO CANNELL GROUP MEMBERS: PLEIADES INVESTMENT PARTNERS, LP GROUP MEMBERS: THE ANEGADA FUND LIMITED GROUP MEMBERS: THE CUTTYHUNK FUND LIMITED GROUP MEMBERS: TONGA PARTNERS, L.P. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: QUALITY SYSTEMS INC CENTRAL INDEX KEY: 0000708818 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 952888568 STATE OF INCORPORATION: CA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-33913 FILM NUMBER: 1716952 BUSINESS ADDRESS: STREET 1: 17822 E 17TH ST STE 210 CITY: TUSTIN STATE: CA ZIP: 92780 BUSINESS PHONE: 7147317171 MAIL ADDRESS: STREET 1: 178222 E 17TH STREET STREET 2: SUITE 210 CITY: TUSTIN STATE: CA ZIP: 92780 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: CANNELL CAPITAL LLC CENTRAL INDEX KEY: 0001058854 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 943366999 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: 2500 18TH STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94110 BUSINESS PHONE: 4158358300 MAIL ADDRESS: STREET 1: 2500 18TH STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94110 FORMER COMPANY: FORMER CONFORMED NAME: CANNELL J CARLO DBA CANNELL CAPITAL MGMT DATE OF NAME CHANGE: 19980330 SC 13D 1 cc13d.txt 8/15/01 -------------------------- OMB APPROVAL ------------ OMB Number: 3235-0145 UNITED STATES Expires: October 31, 2002 SECURITIES AND EXCHANGE COMMISSION Estimated average burden Washington, D.C. 20549 Hours per response...14.90 --------------------------
SCHEDULE 13D Under the Securities Exchange Act of 1934 (Amendments No. __)* Quality Systems Inc. - -------------------------------------------------------------------------------- (Name of Issuer) Common Stock - -------------------------------------------------------------------------------- (Title of Class Securities) 747582104 ------------------------------------ (CUSIP Number) Kenneth D. Heller Cannell Capital, LLC, 2500 18th Street, San Francisco, CA 94110 (415) 229-8117 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications August 15, 2001 - -------------------------------------------------------------------------------- (Date of Event Which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Sections 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. |X| Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Section 240.13d-7 for other parties to whom copies are to be sent. *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosure provided in a prior cover page. The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a current valid OMB control number. SEC 1746 (2-98) Page 1 of 14 pages CUSIP No. 747582104 --------- 1. Name of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). Cannell Capital, LLC 94-3366999 - -------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) |X|.................................................................. ------------------------------------------------------------------- (b) |_|.................................................................. ------------------------------------------------------------------- - -------------------------------------------------------------------------------- 3. SEC Use Only............................................................. -------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. Source of Funds (See Instructions) OO.................................... --------------------------------------- - -------------------------------------------------------------------------------- 5. Check if Disclosure of Legal Proceeding Is Required Pursuant to Items 2(d) or 2(e)....................................................... -------------------------------------------------------- - -------------------------------------------------------------------------------- 6. Citizenship or Place of Organization California...................... ------------------------------------ - -------------------------------------------------------------------------------- 7. Sole Voting Power 0................................. ----------------------------------- Number of ----------------------------------------------------------------- Shares Bene- 8. Shared Voting Power 566,800.......................... ficially Owned --------------------------- by Each ----------------------------------------------------------------- Reporting 9. Sole Dispositive Power 0.............................. Person With: ------------------------------- ----------------------------------------------------------------- 10.Shared Dispositive Power 566,800...................... ----------------------- - -------------------------------------------------------------------------------- 11.Aggregate Amount Beneficially Owned by Each Reporting Person 566,800.... ------------- 12.Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) .................................................. -------------------------------------------------------- 13.Percent of Class Represented by Amount in Row (11) 9.5%................. ----------------------- - -------------------------------------------------------------------------------- 14.Type of Reporting Person (See Instructions) - -------------------------------------------------------------------------------- IA........................................................................... - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- Page 2 of 14 pages CUSIP No. 747582104 --------- 1. Name of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). J. Carlo Cannell - -------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) |X|.................................................................. ------------------------------------------------------------------- (b) |_|.................................................................. ------------------------------------------------------------------- - -------------------------------------------------------------------------------- 3. SEC Use Only............................................................. -------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. Source of Funds (See Instructions) OO.................................... --------------------------------------- - -------------------------------------------------------------------------------- 5. Check if Disclosure of Legal Proceeding Is Required Pursuant to Items 2(d) or 2(e)....................................................... -------------------------------------------------------- - -------------------------------------------------------------------------------- 6. Citizenship or Place of Organization USA............................. ------------------------------------ - -------------------------------------------------------------------------------- 7. Sole Voting Power 0................................. ----------------------------------- Number of ----------------------------------------------------------------- Shares Bene- 8. Shared Voting Power 566,800.......................... ficially Owned --------------------------- by Each ----------------------------------------------------------------- Reporting 9. Sole Dispositive Power 0.............................. Person With: ------------------------------- ----------------------------------------------------------------- 10.Shared Dispositive Power 566,800...................... ----------------------- - -------------------------------------------------------------------------------- 11.Aggregate Amount Beneficially Owned by Each Reporting Person 566,800.... ------------- 12.Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) .................................................. -------------------------------------------------------- 13.Percent of Class Represented by Amount in Row (11) 9.5%................. ----------------------- - -------------------------------------------------------------------------------- 14.Type of Reporting Person (See Instructions) - -------------------------------------------------------------------------------- IN/HC........................................................................ - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- Page 3 of 14 pages CUSIP No. 747582104 --------- 1. Name of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). The Cuttyhunk Fund Limited - -------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) |X|.................................................................. ------------------------------------------------------------------- (b) |_|.................................................................. ------------------------------------------------------------------- - -------------------------------------------------------------------------------- 3. SEC Use Only............................................................. -------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. Source of Funds (See Instructions) WC.................................... --------------------------------------- - -------------------------------------------------------------------------------- 5. Check if Disclosure of Legal Proceeding Is Required Pursuant to Items 2(d) or 2(e)....................................................... -------------------------------------------------------- - -------------------------------------------------------------------------------- 6. Citizenship or Place of Organization Bermuda......................... ------------------------------------ - -------------------------------------------------------------------------------- 7. Sole Voting Power 0................................. ----------------------------------- Number of ----------------------------------------------------------------- Shares Bene- 8. Shared Voting Power 194,900.......................... ficially Owned --------------------------- by Each ----------------------------------------------------------------- Reporting 9. Sole Dispositive Power 0.............................. Person With: ------------------------------- ----------------------------------------------------------------- 10.Shared Dispositive Power 194,900...................... ----------------------- - -------------------------------------------------------------------------------- 11.Aggregate Amount Beneficially Owned by Each Reporting Person 194,900.... ------------- 12.Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) .................................................. -------------------------------------------------------- 13.Percent of Class Represented by Amount in Row (11) 3.3%................. ----------------------- - -------------------------------------------------------------------------------- 14.Type of Reporting Person (See Instructions) - -------------------------------------------------------------------------------- CO........................................................................... - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- Page 4 of 14 pages CUSIP No. 747582104 --------- 1. Name of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). The Anegada Fund Limited - -------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) |X|.................................................................. ------------------------------------------------------------------- (b) |_|.................................................................. ------------------------------------------------------------------- - -------------------------------------------------------------------------------- 3. SEC Use Only............................................................. -------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. Source of Funds (See Instructions) WC.................................... --------------------------------------- - -------------------------------------------------------------------------------- 5. Check if Disclosure of Legal Proceeding Is Required Pursuant to Items 2(d) or 2(e)....................................................... -------------------------------------------------------- - -------------------------------------------------------------------------------- 6. Citizenship or Place of Organization Cayman Islands.................. ------------------------------------ - -------------------------------------------------------------------------------- 7. Sole Voting Power 0................................. ----------------------------------- Number of ----------------------------------------------------------------- Shares Bene- 8. Shared Voting Power 55,000........................... ficially Owned ---------------------------- by Each ----------------------------------------------------------------- Reporting 9. Sole Dispositive Power 0.............................. Person With: ------------------------------- ----------------------------------------------------------------- 10.Shared Dispositive Power 55,000....................... ------------------------ - -------------------------------------------------------------------------------- 11.Aggregate Amount Beneficially Owned by Each Reporting Person 55,000..... ------------- 12.Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) .................................................. -------------------------------------------------------- 13.Percent of Class Represented by Amount in Row (11) 0.9%................. ----------------------- - -------------------------------------------------------------------------------- 14.Type of Reporting Person (See Instructions) - -------------------------------------------------------------------------------- CO........................................................................... - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- Page 5 of 14 pages CUSIP No. 747582104 --------- 1. Name of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). GS Cannell, LLC 98-0232642 - -------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) |X|.................................................................. ------------------------------------------------------------------- (b) |_|.................................................................. ------------------------------------------------------------------- - -------------------------------------------------------------------------------- 3. SEC Use Only............................................................. -------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. Source of Funds (See Instructions) WC.................................... --------------------------------------- - -------------------------------------------------------------------------------- 5. Check if Disclosure of Legal Proceeding Is Required Pursuant to Items 2(d) or 2(e)....................................................... -------------------------------------------------------- - -------------------------------------------------------------------------------- 6. Citizenship or Place of Organization Delaware........................ ------------------------------------ - -------------------------------------------------------------------------------- 7. Sole Voting Power 0................................. ----------------------------------- Number of ----------------------------------------------------------------- Shares Bene- 8. Shared Voting Power 68,500........................... ficially Owned ---------------------------- by Each ----------------------------------------------------------------- Reporting 9. Sole Dispositive Power 0.............................. Person With: ------------------------------- ----------------------------------------------------------------- 10.Shared Dispositive Power 68,500....................... ------------------------ - -------------------------------------------------------------------------------- 11.Aggregate Amount Beneficially Owned by Each Reporting Person 68,500..... ------------- 12.Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) .................................................. -------------------------------------------------------- 13.Percent of Class Represented by Amount in Row (11) 1.1%................. ----------------------- - -------------------------------------------------------------------------------- 14.Type of Reporting Person (See Instructions) - -------------------------------------------------------------------------------- OO........................................................................... - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- Page 6 of 14 pages CUSIP No. 747582104 --------- 1. Name of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). Tonga Parners, L.P. 94-3164039 - -------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) |X|.................................................................. ------------------------------------------------------------------- (b) |_|.................................................................. ------------------------------------------------------------------- - -------------------------------------------------------------------------------- 3. SEC Use Only............................................................. -------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. Source of Funds (See Instructions) WC.................................... --------------------------------------- - -------------------------------------------------------------------------------- 5. Check if Disclosure of Legal Proceeding Is Required Pursuant to Items 2(d) or 2(e)....................................................... -------------------------------------------------------- - -------------------------------------------------------------------------------- 6. Citizenship or Place of Organization Delaware........................ ------------------------------------ - -------------------------------------------------------------------------------- 7. Sole Voting Power 0................................. ----------------------------------- Number of ----------------------------------------------------------------- Shares Bene- 8. Shared Voting Power 223,400.......................... ficially Owned --------------------------- by Each ----------------------------------------------------------------- Reporting 9. Sole Dispositive Power 0.............................. Person With: ------------------------------- ----------------------------------------------------------------- 10.Shared Dispositive Power 223,400...................... ----------------------- - -------------------------------------------------------------------------------- 11.Aggregate Amount Beneficially Owned by Each Reporting Person 223,400.... ------------- 12.Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) .................................................. -------------------------------------------------------- 13.Percent of Class Represented by Amount in Row (11) 3.7%................. ----------------------- - -------------------------------------------------------------------------------- 14.Type of Reporting Person (See Instructions) - -------------------------------------------------------------------------------- PN........................................................................... - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- Page 7 of 14 pages CUSIP No. 747582104 --------- 1. Name of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). Pleiades Investment Partners, LP 23-2688812 - -------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) |X|.................................................................. ------------------------------------------------------------------- (b) |_|.................................................................. ------------------------------------------------------------------- - -------------------------------------------------------------------------------- 3. SEC Use Only............................................................. -------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. Source of Funds (See Instructions) WC.................................... --------------------------------------- - -------------------------------------------------------------------------------- 5. Check if Disclosure of Legal Proceeding Is Required Pursuant to Items 2(d) or 2(e)....................................................... -------------------------------------------------------- - -------------------------------------------------------------------------------- 6. Citizenship or Place of Organization Delaware........................ ------------------------------------ - -------------------------------------------------------------------------------- 7. Sole Voting Power 0................................. ----------------------------------- Number of ----------------------------------------------------------------- Shares Bene- 8. Shared Voting Power 25,000........................... ficially Owned ---------------------------- by Each ----------------------------------------------------------------- Reporting 9. Sole Dispositive Power 0.............................. Person With: ------------------------------- ----------------------------------------------------------------- 10.Shared Dispositive Power 25,000....................... ------------------------ - -------------------------------------------------------------------------------- 11.Aggregate Amount Beneficially Owned by Each Reporting Person 25,000..... ------------- 12.Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) .................................................. -------------------------------------------------------- 13.Percent of Class Represented by Amount in Row (11) 0.4%................. ----------------------- - -------------------------------------------------------------------------------- 14.Type of Reporting Person (See Instructions) - -------------------------------------------------------------------------------- PN........................................................................... - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- Page 8 of 14 pages CUSIP No. 747582104 --------- 1. Name of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only). George S. Sarlo Charitable Remainder Trust 94-6685897 - -------------------------------------------------------------------------------- 2. Check the Appropriate Box if a Member of a Group (See Instructions) (a) |X|.................................................................. ------------------------------------------------------------------- (b) |_|.................................................................. ------------------------------------------------------------------- - -------------------------------------------------------------------------------- 3. SEC Use Only............................................................. -------------------------------------------------------------- - -------------------------------------------------------------------------------- 4. Source of Funds (See Instructions) WC.................................... --------------------------------------- - -------------------------------------------------------------------------------- 5. Check if Disclosure of Legal Proceeding Is Required Pursuant to Items 2(d) or 2(e)....................................................... -------------------------------------------------------- - -------------------------------------------------------------------------------- 6. Citizenship or Place of Organization California...................... ------------------------------------ - -------------------------------------------------------------------------------- 7. Sole Voting Power 0................................. ----------------------------------- Number of ----------------------------------------------------------------- Shares Bene- 8. Shared Voting Power 0................................ ficially Owned --------------------------------- by Each ----------------------------------------------------------------- Reporting 9. Sole Dispositive Power 0.............................. Person With: ------------------------------- ----------------------------------------------------------------- 10.Shared Dispositive Power 0............................ ----------------------------- - -------------------------------------------------------------------------------- 11.Aggregate Amount Beneficially Owned by Each Reporting Person 0.......... ------------- 12.Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions) .................................................. -------------------------------------------------------- 13.Percent of Class Represented by Amount in Row (11) 0%................... ----------------------- - -------------------------------------------------------------------------------- 14.Type of Reporting Person (See Instructions) - -------------------------------------------------------------------------------- OO........................................................................... - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- ............................................................................. - -------------------------------------------------------------------------------- Page 9 of 14 pages Page 10 of 14 Exhibit A - --------- Item 1 Security and Issuer This statement relates to Common Stock ("Common Stock"), issued by Quality Systems, Inc., a California Corporation ("QSI"). The address of the principal executive offices of QSI is 17822 E. 17th Street, Suite 210, Tustin, CA 92780. Item 2 Identity and Background Name: Cannell Capital, LLC ("Adviser") Place of Organization: California Principal Business: Investment Adviser Address: 2500 18th Street, San Francisco, CA 94110 Criminal Proceedings: None Applicable Civil, Judicial or Administrative Proceedings: None Name: The Cuttyhunk Fund Limited ("Cuttyhunk") Place of Organization: Bermuda Principal Business: Investment Address: 73 Front Street, Hamilton, Bermuda HM 12 Criminal Proceedings: None Applicable Civil, Judicial or Administrative Proceedings: None Name: The Anegada Fund Limited ("Anegada") Place of Organization: Cayman Islands Principal Business: Investment Address: c/o Goldman Sachs (Cayman) Trust, Limited, 2nd Floor, Harbour Centre, George Town, Cayman Islands, BWI Criminal Proceedings: None Applicable Civil, Judicial or Administrative Proceedings: None Name: Tonga Partners, L.P. ("Tonga") Place of Organization: Delaware Principal Business: Investment Address: 2500 18th Street, San Francisco, CA 94110 Criminal Proceedings: None Applicable Civil, Judicial or Administrative Proceedings: None Name: GS Cannell, LLC ("GSC") Place of Organization: Delaware Principal Business: Investment Address: 701 Mount Lucas Road, CN 850, Princeton, NJ 08542 Criminal Proceedings: None Applicable Civil, Judicial or Administrative Proceedings: None Page 11 of 14 Exhibit A - --------- Name: Pleiades Investment Partners, LP ("Pleiades") Place of Organization: Delaware Principal Business: Investment Address: 6022 West Chester Pike, Newtown Square, PA 19073 Criminal Proceedings: None Applicable Civil, Judicial or Administrative Proceedings: None Name: J. Carlo Cannell Address: 2500 18th Street, San Francisco, CA 94110 Criminal Proceedings: None Applicable Civil, Judicial or Administrative Proceedings: None Citizenship: United States J Carlo Cannell is the controlling and managing member of Adviser. Adviser serves as investment adviser to Cuttyhunk, Anegada, GSC, and Pleiades. Adviser is general partner and investment adviser to Tonga. George S. Sarlo 1995 Charitable Remainder Trust, a trust formed in California, no longer holds any Common Stock of QSI and is no longer a Reporting Person. Item 3 Source and amount of Funds or other Consideration The aggregate amount of funds used by Cuttyhunk to purchase 194,900 shares of Common Stock owned by it was approximately $1,860,465. Such amount was derived from working capital. The aggregate amount of funds used by Anegada to purchase 55,000 shares of Common Stock owned by it was approximately $517,845. Such amount was derived from working capital. The aggregate amount of funds used by GSC to purchase 68,500 shares of Common Stock owned by it was approximately $653,265. Such amount was derived from working capital. The aggregate amount of funds used by Tonga to purchase 223,400 shares of Common Stock owned by it was approximately $2,134,402. Such amount was derived from working capital. The aggregate amount of funds used by Pleiades to purchase 25,000 shares of Common Stock owned by it was approximately $241,033. Such amount was derived from working capital. Item 4 Purpose of Transaction The Common Stock was originally purchased by the Reporting Persons for passive investment purposes. The Adviser has concerns regarding the certain matters of corporate finance of QSI and is reviewing the alternatives, on behalf all Reporting Persons. The Page 12 of 14 Exhibit A - --------- Adviser intends to closely monitor developments relating to and affecting QSI. The Adviser intends to recommend to QSI that the company seek to initiate a "Dutch Auction" tender. Subject to availability at prices deemed favorable, the Reporting Persons may acquire additional shares of Common Stock of the Company from time to time in the open market, in privately negotiated transactions or otherwise. The Reporting Persons may dispose of shares of Common Stock of the Company from time to time in the open market, in privately negotiated transactions or otherwise. Except as set forth above, the Reporting Persons has no present plans or intentions that relate to or that would result in any of the transactions described in clauses (a) through (j) of Item 4 of Schedule 13D. Item 5 Interest in Securities of the Issuer (a) As of August 15, 2001, the Reporting Persons directly or indirectly beneficially owned 566,800 shares, or 9.5%, of Common Stock of QSI (the approximate of the shares of Common Stock owned is based on 5,970,000 shares of common stock outstanding by QSI on June 30, 2001). (1) Cuttyhunk owned 194,900 shares (3.3%) (2) Anegada owned 55,000 shares (0.9%) (3) GSC owned 68,500 shares (1.1%) (4) Tonga owned 223,400 shares (3.7%) (5) Pleiades owned 25,000 shares (0.4%) (b) The responses of the Reporting Persons to Items 7 through 11 of the portions of the cover page of this Schedule D which relate to beneficial ownership of shares of the Common Stock are incorporated herein by reference. (c) A list of transactions in the past 60 days. - ------------------------------------------------------------------------------ Party Date Amount Bought Price per Where & How (Sold) Share Effected - ------------------------------------------------------------------------------ Cuttyhunk 06/27/01 900 12.00 Open market - ------------------------------------------------------------------------------ Cuttyhunk 06/28/01 3,000 12.86 Open market - ------------------------------------------------------------------------------ Cuttyhunk 06/29/01 1,200 13.00 Open market - ------------------------------------------------------------------------------ Cuttyhunk 07/02/01 900 12.95 Open market - ------------------------------------------------------------------------------ Cuttyhunk 07/17/01 1,800 12.95 Open market - ------------------------------------------------------------------------------ Anegada 06/27/01 600 12.00 Open market - ------------------------------------------------------------------------------ Anegada 06/28/01 1,400 12.86 Open market - ------------------------------------------------------------------------------ Anegada 06/29/01 600 13.00 Open market - ------------------------------------------------------------------------------ Anegada 07/02/01 600 12.95 Open market - ------------------------------------------------------------------------------ Anegada 07/17/01 500 12.95 Open market - ------------------------------------------------------------------------------ Page 13 of 14 Exhibit A - --------- - ------------------------------------------------------------------------------ Anegada 07/24/01 1,700 13.98 Open market - ------------------------------------------------------------------------------ GSC 06/28/01 400 12.86 Open market - ------------------------------------------------------------------------------ GSC 06/29/01 200 13.00 Open market - ------------------------------------------------------------------------------ GSC 07/17/01 500 12.95 Open market - ------------------------------------------------------------------------------ GSC 07/24/01 1,800 13.98 Open market - ------------------------------------------------------------------------------ Tonga 06/27/01 900 12.00 Open market - ------------------------------------------------------------------------------ Tonga 06/28/01 3,300 12.86 Open market - ------------------------------------------------------------------------------ Tonga 06/29/01 1,400 13.00 Open market - ------------------------------------------------------------------------------ Tonga 07/02/01 900 12.95 Open market - ------------------------------------------------------------------------------ Tonga 07/17/01 2,000 12.95 Open market - ------------------------------------------------------------------------------ Tonga 07/24/01 6,300 13.98 Open market - ------------------------------------------------------------------------------ Pleiades 06/27/01 100 12.00 Open market - ------------------------------------------------------------------------------ Pleiades 06/28/01 400 12.86 Open market - ------------------------------------------------------------------------------ Pleiades 06/29/01 100 13.00 Open market - ------------------------------------------------------------------------------ Pleiades 07/02/01 100 12.95 Open market - ------------------------------------------------------------------------------ Pleiades 07/17/01 200 12.95 Open market - ------------------------------------------------------------------------------ Pleiades 07/24/01 700 13.98 Open market - ------------------------------------------------------------------------------ (d) Not Applicable (e) Not Applicable Item 6 Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer J. Carlo Cannell controls and manages the Adviser who makes voting and dispositive decisions for the Cuttyhunk, Anegada, GSC, Tonga, and Pleiades. Item 7 Material to Be Filed as Exhibits Not Applicable After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Date: August 15, 2001 J. Carlo Cannell /s/ Carlo Cannell --------------------------------------------- J. Carlo Cannell Cannell Capital, LLC /s/ Carlo Cannell --------------------------------------------- J. Carlo Cannell, Managing Member Page 14 of 14 Exhibit A - --------- The Anegada Fund, Limited /s/ Carlo Cannell --------------------------------------------- J. Carlo Cannell, Managing Member Cannell Capital, LLC, Investment Adviser The Cuttyhunk Fund Limited /s/ Carlo Cannell --------------------------------------------- J. Carlo Cannell, Managing Member Cannell Capital, LLC, Investment Adviser GS Cannell, LLC /s/ Carlo Cannell --------------------------------------------- J. Carlo Cannell, Managing Member Cannell Capital, LLC, Investment Adviser Tonga Partners, L.P. /s/ Carlo Cannell --------------------------------------------- J. Carlo Cannell, Managing Member Cannell Capital, LLC, General Partner Pleiades Investment Partners, LP /s/ Carlo Cannell --------------------------------------------- J. Carlo Cannell, Managing Member Cannell Capital, LLC, Investment Adviser -----END PRIVACY-ENHANCED MESSAGE-----