Manufacturing enterprise software provider QAD this week announced disappointing, but not surprising, financial results for both its fourth quarter and fiscal year 2009, ended Jan. 31.
Total revenue dropped 21% to $59.3 million from $75.3 million in the fourth quarter of 2008. License revenue showed the biggest falloff; plummeting 54% to $10.2 million from $22.4 million in the like period last year. Services revenue was $16.7 million, versus $19.8 million last year, while maintenance revenue was $32.4 million, compared with $33.1 million a year ago.
On a conference call with analysts Thursday, officials pulled no punches. “Our fourth quarter was even more difficult than we expected,” said QAD Chief Executive Karl Lopker. “The economic crisis spread from the U.S. to include manufacturing firms worldwide, especially those in the automotive supply area.”
The automotive sector normally accounts for approximately one-third of the company’s business.