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QAD TURNS IN STRONG 1Q Featured

Karl Lopker, QADManufacturing software company QAD reported a return to profitability and strong revenue growth for its first quarter ended April 30. QAD had $1.4 million in net income for the most recently ended quarter, compared to a loss of $2.6 million a year earlier.

Revenue reached $86.2 million, an increase of 20.7 percent from $71.4 million in last year’s corresponding period. CEO Karl Lopker said in a recent earnings webcast that QAD exceeded revenue and earnings guidance. Cloud subscriptions continued strong growth, reached $21.5 million for the first quarter of 2018, up 40.2 percent from $15.3 million a year earlier. CFO Daniel Lender said the cloud sales “is approaching 70 percent of funnel up from 60 percent”. License revenue reached $6.3 million, a rise of 19 percent from $5.3 million while professional services hit $26.9 million, up 42.7 percent from $18.9 million. Only maintenance revenue failed to rise dropping 1.3 percent to $31.5 million in the most recently ended quarter from $31.9 million a year ago. That is typical for software companies as customers switch from desktop systems to cloud and from license sales to subscriptions.

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