Shares of software firm QAD shot up almost 7 percent in midday trading on Friday after the company reported a smaller first-quarter loss.
Santa Barbara-based QAD posted a quarterly loss of $76,000, or 1 cent per Class A share and break-even for Class B shares, compared to a loss of $1.3 million a year earlier.
QAD’s revenue jumped 11 percent to $68.5 million. Sales from its subscription service soared 55 percent to $6.2 million, largely driven by sales of its cloud-based offering, QAD Enterprise Cloud.
“QAD’s first-quarter results reflect growth across all business lines, which resulted in higher-than-expected revenue. Cloud momentum is continuing with solid bookings during the quarter,” CEO Karl Lopker said in an earnings release.
QAD said it expects second-quarter revenue of about $70 million and earnings per share of 5 cents for Class A shareholders and 4 cents for Class B shareholders. For the full year, it expects revenue to grow at about the same rate as it did last year, the company said. Earnings are also expected to be similar to last year’s results, indicating predicted profits of about $6.4 million.
QAD shares were trading up 6.7 percent to $18.72 by 1:35 p.m. in New York on Friday.