Meanwhile, the shift to the cloud hurt profitability as the company ramps up for cloud sales but matching revenue is recognized only as subscription income arrives. That meant net income fell to $1.5 million for the most recently ended period, off 40.7 percent from $2.6 million a year earlier. Revenue reached $69.6 million, up 2.2 percent from $68 million in last year's corresponding period. License revenue fell to $4.3 million, down 31.9 percent, from $6.4 million. Subscription income grew to $13.7 million, a rise of 41.6 percent, from $9.7 million." A lot of deals are coming from SAP rollouts that have installed or failed," said president Pam Kopker. She described those as customers "Coming back to us because they are not seeing SAP roll outs for years." Moreover, some run SAP at headquarters but utilize QAD in their divisions.