QAD profits slip despite record revenue
Summerland-based QAD’s profits in its most recent fiscal year dipped 3.8 percent to $6.4 million, or 41 cents per Class A share and 34 cents per Class B share.
The earnings decline came despite record revenue. QAD, which makes enterprise software for manufacturers, said full-year revenue climbed 5.6 percent to $266.3 million.
Fourth-quarter earnings more than doubled to $4.3 million, or 27 cents per share, on revenue gains of 12 percent. Software license revenue made up a large chunk of that growth, with fourth-quarter sales from the segment clocking in at $14.6 million, compared to $9.5 million a year earlier. QAD said its cloud-hosted offerings also showed growth, with fourth-quarter subscription revenue rising 43.2 percent to $5.8 million.
“We are very pleased to report record revenues for the year and a strong finish with solid fourth-quarter performance,” QAD’s chief executive officer, Karl Lopker, said in a news release. “We achieved better-than-expected results in our license and services businesses, enhanced by continued growth in subscription revenue from the QAD Enterprise Cloud. We continue to see growing acceptance and opportunities in the Cloud, and expect momentum to continue into fiscal 2015.”
QAD said it expects to break even in the first quarter on an anticipated $67 million in revenue. In the first quarter of its most recent fiscal year, it posted a net loss of $1.3 million, or 8 cents per Class A share and 7 cents per Class B share, on lower-than-expected revenue.
For the full year, the firm said it expects to see revenue growth and earnings similar to what it achieved in the most recent year.
Shares of QAD fell 0.9 percent to $17.27 in after-hours trading following the earnings report.