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Vitatech Enhances Quality Control with Upgrade to QAD Enterprise Applications

QAD Inc. (NASDAQ:QADA) (NASDAQ:QADB), a leading provider of enterprise software and services, announced that Vitatech Nutritional Sciences Inc. (Vitatech), a California-based vitamin and supplement formulation company, successfully implemented the new quality capabilities in QAD Enterprise Applications. The enhanced QAD quality control framework allows Vitatech to track and report on ingredients used in different lots, batches and stages of its manufacturing processes. Full details are available in a recently published case study.

Vitatech has been an FDA-licensed contract manufacturer of dietary powders, tablets and two-piece capsules for sixty years. They produce high-quality nutritional supplements for a variety of private-label partners worldwide. Vitatech sources top-quality raw materials, offers Ph.D.-level formulation assistance, has extensive research and development capabilities and operates state-of-the-art manufacturing facilities.

Need for Quality Control System

Operating in a highly regulated industry and with a strong commitment to customer satisfaction, quality control is at the core of Vitatech’s manufacturing. Every step of the process needs to be monitored, recorded and tested for quality compliance.

“Our quality control system was paper-based and labor-intensive, with laboratories in several adjoining buildings, requiring all activities to be very carefully managed. We needed a faster, more effective quality control system,” said Toni Clubb, chief financial officer, Vitatech.

Results of Implementation

QAD Enterprise Application with quality control enhancements was implemented within six months and the benefits include:

  • User-entered results are validated against pre-established specifications, eliminating human error during evaluation
  • In-bound material inspections are automated, saving time and money
  • Information for analysis is more easily retrieved
  • Data processing has been streamlined and reduced the use of paper
  • The ability to manage a product recall has been greatly improved using the new Lot Trace Workbench
  • The ability to track, trace and report quality results on additional material characteristics has been enhanced

“Our most important asset is the quality of our products. Our QAD Enterprise Applications upgrade included quality control capabilities, which have elevated our results to even higher levels,” said Toni Clubb, chief financial officer, Vitatech.

About Vitatech Nutritional Sciences

Vitatech Nutritional Sciences Inc. is a senior US-based manufacturer and innovator of dietary supplements and nutritional products, serving the natural products industry since 1954. The company differentiates itself by its emphasis on consumer education and positive lifestyles as solutions to health issues, teamed with professional medical guidance. Vitatech's mission is “to improve human lives.” More information is available at www.vitatech.com.

About QAD – The Effective Enterprise

QAD Inc. (NASDAQ:QADA) (NASDAQ:QADB) is a leading provider of enterprise software and services designed for global manufacturing companies. For more than 30 years, QAD has provided global manufacturing companies with QAD Enterprise Applications, an enterprise resource planning (ERP) system that supports operational requirements, including financials, manufacturing, demand and supply chain planning, customer management, business intelligence and business process management. QAD Enterprise Applications is offered in flexible deployment models as on-premise software, in the cloud with QAD Cloud ERP or in a blended environment. With QAD, customers and partners in the automotive, consumer products, food and beverage, high technology, industrial products and life sciences industries can better align daily operations with their strategic goals to meet their vision of becoming more Effective Enterprises.

For more information about QAD, call +1 805-566-6000, visit www.qad.com.

“QAD” is a registered trademark of QAD Inc. All other products or company names herein may be trademarks of their respective owners.

Note to Investors: This press release contains certain forward-looking statements made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Words such as “expects”, “believes”, “anticipates”, “could”, “will likely result”, “estimates”, “intends”, “may”, “projects”, “should”, and variations of these words and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are based on the company’s current expectations and assumptions regarding its business, the economy and future conditions. A number of risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements. These risks include, but are not limited to, evolving demand for the company's software products and products that operate with the company's products; the company's ability to sustain license and service demand; the company's ability to leverage changes in technology; the company's ability to sustain customer renewal rates at current levels; the publication of opinions by industry and financial analysts about the company, its products and technology; the reliability of estimates of transaction and integration costs and benefits; the entry of new competitors or new offerings by existing competitors and the associated announcement of new products and technological advances by them; delays in localizing the company's products for new or existing markets; the ability to recruit and retain key personnel; delays in sales as a result of lengthy sales cycles; changes in operating expenses, pricing, timing of new product releases, the method of product distribution or product mix; timely and effective integration of newly acquired businesses; general economic conditions; exchange rate fluctuations; and, the global political environment. In addition, revenue and earnings in the enterprise resource planning (ERP) software industry are subject to fluctuations. Software license revenue, in particular, is subject to variability with a significant proportion of revenue earned in the last month of each quarter. Given the high margins associated with license revenue, modest fluctuations can have a substantial impact on net income. Investors should not use any one quarter's results as a benchmark for future performance. For a more detailed description of the risk factors associated with the company and the industries in which it operates, please refer to the company's Annual Report on Form 10-K for fiscal 2013 ended January 31, 2013, and in particular, the section entitled “Risk Factors” therein, and in other periodic reports the company files with the Securities and Exchange Commission.

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