QAD Posts Mixed Results in Fiscal Q1

ERP provider logs net loss despite double-digit revenue growth; plans first maintenance rate increase in eight years.


Posted on May 30, 2008

In its first fiscal quarter of 2009, ERP provider QAD reported double-digit growth in revenue across each of its software and services categories, although the company was unable to turn a profit.

In the quarter ended April 30, QAD's total revenue increased 18% to $66.8 million, from $56.6 million in the year-earlier period. Software license revenue also rose 18% to $12.0 million, compared with $10.2 million a year ago. Maintenance and other revenue grew 10%, totaling $34.2 million, up from $31.0 million, and revenue from services increased 34% to $20.7 million, compared with $15.4 million in the like period last year.

The net loss for the quarter was $730,000, an improvement on a net loss of $1.9 million in the comparable period last year.

"License revenue and profitability were not quite where we wanted them to be," said QAD Chief Executive Karl Lopker on a call last night with investors and financial analysts. "There was also a lengthening in the sales cycles, which we believe is due to the slower economy."

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