QuadraMed has reported a net income of $300,000 before preferred stock accretion and dividends declared for the first quarter of 2008, which ended March 31, compared to a net income of $2.6 million for the same period in 2007.

The company said that included in the current period is approximately $600,000 of severance costs related to the change in its product development strategy, announced in February.

The revenues of $35.3 million, gross margin of 56 percent and operating expenses of $19.4 million combined to produce the achieved operating results for the quarter, compared to revenues of $29.2 million, gross margin of 62 percent and operating expenses of $16.1 million for the same period in 2007, according to the Reston, Va.-based QuadraMed. The company primarily attributed its increases in revenues and expenses to the September 2007 acquisition of certain business assets from Misys.

QuadraMed also reported a net loss attributable to common shareholders of $1.1 million for the quarter, which compared to a net income attributable to common shareholders of $1.3 million for the same period in 2007.