License revenue fell to $6.4 million from $8.6 million and services revenue dropped to just under $18 million from $19.8 million. Typical of the software industry's move to the cloud, subscription revenue grew to $12.3 million, an increase of 34.7 percent from $9.1 million a year earlier. QAD also lost $1.2 million in revenue to currency changes. Net income fell to $600 million in the quarter, down 63.2 percent from $1.6 million in last year's corresponding period. QAD reported an operating loss of $363,000, compared to operating income of $2.3 million in last year's second quarter.  The quarter's net income stemmed primarily from a tax benefit of $532,000, compared to a tax expense of slightly more than $1 million the prior year.