Santa Barbara manufacturing software company QAD reported a $15.5 million net loss, or 84 cents per diluted Class A share for the fiscal year ended Jan. 31, as a result of a valuation allowance related to deferred tax assets.
The valuation allowance was connected to the company’s investments in cloud technology, the March 9 earnings release stated, and net loss for the quarter was $15.2 million.
Revenues remained flat to the previous year at $278 million but increased more than 5 percent for the fourth quarter, compared to the same period in the previous fiscal year, primarily in subscription revenues. Operating income during the quarter rose to $4.1 million, a 13.9 percent increase over the previous fourth quarter.
Operating expenses rose 4 percent to $36.3 million, driven by higher sales and marketing and research and development costs.
“We finished the year with strong performance from our cloud business, delivering 40 percent growth and continued margin improvement,” said CEO Karl Lopker. “We entered the new financial year with good momentum and in a healthy environment for the global manufacturing market.”
The company had $145.1 million in cash on hand, with current liabilities of $149.5 million. For its fiscal year 2018 outlook, it announced expectations of $68 million to $70 million in revenue for the first quarter and $288 million to $292 million in revenue for the year.
The company’s stock was up 3.76 percent at the close of business March 9, at $24.02
• Contact Marissa Nall at [email protected]