|By Business Wire||
|August 26, 2014 04:06 PM EDT||
QAD Inc. (NASDAQ: QADA) (NASDAQ: QADB), a leading provider of enterprise business software and services for global manufacturing companies, today reported financial results for the fiscal 2015 second quarter ended July 31, 2014, including record second quarter and first half revenue.
Total revenue grew 12 percent to a second quarter record of $73.1 million for the fiscal 2015 second quarter, up from $65.2 million for the same period in fiscal 2014. License revenue increased to $9.0 million for the second quarter of fiscal 2015, up from $8.6 million for the same quarter last year. Subscription revenue grew to $6.4 million, up from $4.5 million for last year’s fiscal second quarter, driven by continued growth of QAD Enterprise Cloud sales. Maintenance and other revenue rose to $36.1 million, up from $34.3 million for last year’s fiscal second quarter. Professional services revenue increased to $21.5 million, up from $17.9 million for the second quarter of fiscal 2014.
Net income for the fiscal 2015 second quarter was $985,000, or $0.06 per diluted Class A share and $0.05 per diluted Class B share, compared with $1.3 million, or $0.08 per diluted Class A share and $0.07 per diluted Class B share, last year.
“We are very pleased with our performance for the second quarter and first half of the year, delivering record revenues for these periods. Continued impressive growth in our cloud business was led by a strong performance from our European region,” said Karl Lopker, Chief Executive Officer of QAD Inc. “QAD is well positioned to benefit from the strength in the global manufacturing economy through our robust Cloud ERP solution.”
Gross profit for the fiscal 2015 second quarter equaled $39.8 million, or 55 percent of total revenue, compared with $36.4 million, or 56 percent of total revenue, for the fiscal 2014 second quarter.
Total operating expenses amounted to $37.8 million, or 52 percent of total revenue, for the fiscal 2015 second quarter, versus $34.9 million, or 54 percent of total revenue, for the same quarter last year. The increase includes expenses related to the company’s cloud business, where revenue was not yet recognized, as well as increased personnel and travel.
Operating income for the second quarter of fiscal 2015 was $2.1 million, which included $1.7 million in stock compensation expense. For the second quarter of fiscal 2014, operating income was $1.5 million, which included $1.6 million in stock compensation expense.
For the first six months of fiscal 2015, total revenue rose 11 percent to $141.5 million, up from $127.1 million for the first six months of fiscal 2014. The company reported net income of $909,000, or $0.06 per diluted Class A share and $0.05 per diluted Class B share, for the fiscal 2015 year-to-date period, compared with breakeven performance for the fiscal 2014 year-to-date period.
QAD’s cash and equivalents balance was $75.3 million at July 31, 2014, compared with $76.0 million at January 31, 2014. Cash provided by operations for the first six months of fiscal 2015 was $5.5 million, compared with $13.0 million for the first six months of fiscal 2014.
Fiscal 2015 Second Quarter Highlights:
- Received orders from 18 customers representing more than $500,000 each in combined license, maintenance, subscription and professional services billings, including seven orders in excess of $1.0 million, of which one order was in excess of $2.0 million;
- Received license or cloud orders from companies across QAD’s six vertical markets, including: Alliance Boots GmbH, Amcor Limited, Autoliv Inc., CooperStandard Holdings, Inc., Cummins Inc., DS Smith Plc, Eaton Corporation, Esterline Technologies, Harada Industry Co Ltd, Johnson Controls, Inc, Kitagawa Industries Co., Ltd, Konica Minolta, Inc, Laerdal Medical AS, Medline Industries, Inc., Saint Gobain SA and Sunrise Medical GmbH;
- Announced the latest release of its flagship enterprise resource planning solution, QAD Enterprise Applications 2014, introducing a broad range of new capabilities with a focus on quality management and control, user experience and simpler international deployments; and
- Added Leslie Stretch, Chief Executive Officer of CallidusCloud to QAD’s Board of Directors.
For the third quarter of fiscal 2015, QAD anticipates total revenue of approximately $71 million and earnings of approximately $0.12 per diluted Class A share and $0.10 per diluted Class B share. QAD is raising its fiscal 2015 revenue growth guidance to approximately 8 percent from fiscal 2014. The company continues to expect earnings to be approximately equal to fiscal 2014.
Calculation of Earnings Per Share
EPS is reported based on the company’s dual-class share structure, and includes a calculation for both Class A and Class B shares. Since Class A shares have rights to 120% of dividends paid on Class B shares, net income is apportioned so that earnings per share attributable to a Class A share are 120% of earnings per share attributable to a Class B share.
Investor Conference Call
QAD management will host an investor conference call today at 2:00 p.m. PT (5:00 p.m. ET) to review the company’s financial results and operations for the fiscal 2015 second quarter. The conference call will be webcast live and is accessible through the investor relations section of QAD’s web site at www.qad.com, where it will be available for approximately one year. Interested parties may participate in the call by dialing 800-230-1059 (domestic) or 612-288-0329 (international). A replay of the call will be accessible through midnight September 3, 2014 by dialing 800-475-6701 (domestic) or 320-365-3844 (international), passcode 332168.
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 or 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, including, but not limited to, statements regarding projections of revenue, income and loss, capital expenditures, plans and objectives of management regarding the Company’s business, future economic performance or any of the assumptions underlying or relating to any of the foregoing. Forward-looking statements are based on the company’s current expectations. Words such as “expects”, “believes”, “anticipates”, “could”, “will likely result”, “estimates”, “intends”, “may”, “projects”, “should”, “would”, “might”, “plan” and variations of these words and similar expressions are intended to identify these forward looking statements. 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 products and companion products; the ability to sustain license and service demand; fluctuation in revenue and earnings in the software industry; the ability to leverage changes in technology; the ability to sustain customer renewal rates at current levels; third party opinions about the company; the reliability of estimates of transaction and integration costs and benefits; competition in our industry; delays in localizing the company's products for new or existing markets; the ability to recruit and retain key personnel; delays in sales; 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. For a more detailed description of the risk factors associated with the company, please refer to the company's latest Annual Report on Form 10-K, and in particular, the section entitled “Risk Factors” therein, and in other periodic reports the company files with the Securities and Exchange Commission thereafter. Management does not undertake to update these forward-looking statements except as required by law.
|Condensed Consolidated Statements of Operations|
|(In thousands, except per share data)|
Three Months Ended
Six Months Ended
|Maintenance and other||36,120||34,254||72,196||69,455|
|Cost of revenue:|
|Maintenance, subscription and other||12,465||11,047||24,421||22,109|
|Total cost of revenue||33,219||28,777||64,650||57,402|
|Sales and marketing||17,421||15,850||33,898||31,906|
|Research and development||10,902||10,469||22,097||21,314|
|General and administrative||9,265||8,431||18,169||16,377|
|Amortization of intangibles from acquisitions||179||177||359||353|
|Total operating expenses||37,767||34,927||74,523||69,950|
|Operating income (loss)||2,064||1,490||2,362||(231||)|
|Other expense (income):|
|Other expense (income), net||(118||)||(809||)||108||(1,082||)|
|Total other expense (income), net||58||(673||)||408||(840||)|
|Income before income taxes||2,006||2,163||1,954||609|
|Income tax expense||1,021||909||1,045||618|
|Net income (loss)||$||985||$||1,254||$||909||$||(9||)|
|Diluted net income (loss) per share|
|Diluted Weighted Shares|
|Condensed Consolidated Balance Sheets|
|July 31,||January 31,|
|Cash and equivalents||$||75,339||$||75,984|
|Accounts receivable, net||52,662||71,337|
|Deferred tax assets, net||8,275||8,133|
|Other current assets||13,667||14,980|
|Total current assets||149,943||170,434|
|Property and equipment, net||32,720||33,085|
|Capitalized software costs, net||2,873||3,315|
|Long-term deferred tax assets, net||11,170||11,788|
|Other assets, net||4,386||4,814|
|Liabilities and stockholders' equity|
|Current portion of long-term debt||$||397||$||389|
|Accounts payable and other current liabilities||39,789||45,241|
|Total current liabilities||128,966||149,790|
|Additional paid-in capital||146,898||150,837|
|Accumulated other comprehensive loss||(7,165||)||(6,958||)|
|Total stockholders' equity||63,025||64,205|
|Total liabilities and stockholders' equity||$||212,482||$||234,813|
|Condensed Consolidated Statements of Cash Flows|
|Six Months Ended|
|Net cash provided by operating activities||$||5,465||$||13,049|
|Cash flows from investing activities:|
|Purchase of property and equipment||(1,473||)||(3,000||)|
|Capitalized software costs||(123||)||(148||)|
|Net cash used in investing activities||(1,596||)||(3,117||)|
|Cash flows from financing activities:|
|Repayments of debt||(194||)||(187||)|
|Tax payments, net of proceeds, related to stock awards||(2,247||)||(589||)|
|Excess tax benefits from share-based payment arrangements||133||81|
|Payment of contingent liability associated with acquisitions||(471||)||-|
|Repurchase of stock||-||(686||)|
|Dividends paid in cash||(2,216||)||(3,119||)|
|Net cash used in financing activities||(4,995||)||(4,500||)|
|Effect of exchange rates on cash and equivalents||481||(1,046||)|
|Net (decrease) increase in cash and equivalents||(645||)||4,386|
|Cash and equivalents at beginning of period||75,984||65,009|
|Cash and equivalents at end of period||$||75,339||$||69,395|
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Jan. 19, 2017 06:30 PM EST Reads: 6,313
Providing secure, mobile access to sensitive data sets is a critical element in realizing the full potential of cloud computing. However, large data caches remain inaccessible to edge devices for reasons of security, size, format or limited viewing capabilities. Medical imaging, computer aided design and seismic interpretation are just a few examples of industries facing this challenge. Rather than fighting for incremental gains by pulling these datasets to edge devices, we need to embrace the i...
Jan. 19, 2017 05:30 PM EST Reads: 3,624
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Jan. 19, 2017 05:15 PM EST Reads: 1,288
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Jan. 19, 2017 05:15 PM EST Reads: 3,099
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Jan. 19, 2017 04:45 PM EST Reads: 3,755
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
Jan. 19, 2017 04:45 PM EST Reads: 3,470
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 19, 2017 04:15 PM EST Reads: 5,402
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Jan. 19, 2017 04:00 PM EST Reads: 5,427
SYS-CON Events announced today that Catchpoint, a leading digital experience intelligence company, has been named “Silver Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Catchpoint Systems is a leading Digital Performance Analytics company that provides unparalleled insight into your customer-critical services to help you consistently deliver an amazing customer experience. Designed for digital business, C...
Jan. 19, 2017 03:45 PM EST Reads: 1,790
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, will highlight the current challenges of these transformative technologies and share strategies for preparing your organization for these changes. This “view from the top” will outline the latest trends and developm...
Jan. 19, 2017 03:30 PM EST Reads: 1,031
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Jan. 19, 2017 02:15 PM EST Reads: 1,055
@ThingsExpo has been named the ‘Top WebRTC Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @ThingsExpo ranked as the number one ‘WebRTC Influencer' followed by @DevOpsSummit at 55th.
Jan. 19, 2017 02:00 PM EST Reads: 4,780
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Jan. 19, 2017 01:15 PM EST Reads: 5,669
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Jan. 19, 2017 01:15 PM EST Reads: 5,162
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
Jan. 19, 2017 01:15 PM EST Reads: 3,532