Manufacturing software provider QAD this week reported lackluster numbers for its second quarter, saying that the oft-touted manufacturing recovery has not yet translated into an uptick in ERP sales.
QAD, which sells enterprise applications and ERP software tailored to manufacturers, said that revenue barely budged year over year, remaining essentially flat at $51.3 million in the quarter ended July 31. License revenue declined 2% to $6.5 million, while services revenue grew 2% to $12.8 million and the maintenance needle stayed put, at $33 million.
Reduced general and administrative costs helped the manufacturing software provider turn a Q2 2010 loss of $1.4 million into Q2 2011 net income of $315,000.
“While the manufacturing economy continues to pick up, this has not yet translated into a significant increase in our revenue,” said CEO Karl Lopker on a conference call Thursday to announce the Q2 results. “We believe this is because manufacturers still view the recovery as fragile and are hesitant to dive into new projects.”