Santa Barbara software developer QAD’s revenues and profits fell, the company reported in fourth quarter and fiscal year 2016 earnings results March 10.
Fourth quarter revenues fell from $79.6 million in 2015’s fourth quarter to $69.3 million in 2016. Gross profits fell from $45.7 million to $38.4 million. QAD hit analyst revenue estimates of $69 million during the quarter.
Revenue during the year fell from $295.1 million in 2015 to $277.9 million in 2016. Gross profits also fell moderately during the year from $163.5 million to $151.3 million. Net income of $8.9 million in 2016 is also down from $12.9 million in 2015. The company said a strong dollar was partly to blame.
In recent years, QAD has been bolstering its lineup of cloud services to boost subscription revenues. QAD acquired three companies in the last eight years, but kept the companies separate because of the markets they serve. Subscription revenues increased during the quarter from $7.9 million in 2015 to $10.6 million in 2016 and during the year from $28.2 million to $38.8 million.
This story has been updated to state QAD reported results for fiscal year 2016, not fiscal year 2016.
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