Revenue dropped to $65.4 million for the most recently ended quarter, down 5.6 percent from $69.3 million a year earlier. Revenue was down 4 percent on a constant currency basis. Subscription revenue of $11.5 million was about 25-percent higher than a year ago. In the week's earnings webcast, CEO Karl Lopker said more than half the value of cloud bookings came from life sciences, an area in which QAD normally has smaller deals. "While our total sales funnel is flat with last year at this time, the cloud increased to more than 55 percent of the deals," he said.  "A number of those deals are over $1 million in annual contract value and take time to close and roll out, although we also see a good mix of medium-size opportunities also." The cloud was also responsible for a roughly 2-percent increase in employees to 1,715. Lopker said that stemmed mainly from hiring in cloud operations development and services. Cloud sales hurt revenue because they are sold via subscription and revenue is recognized overtime, instead of in one chunk as occurs with software license sales.