Currency took $5.6 million out of revenue, and $4.4 out of expenses, netting $1.2 million to the negative. Lopker noted increased interest in cloud computing from Asia and Europe and said QAD's focus on multi-national manufacturing fit the emerging trend. The company has about 400 sites in China, but the business there is exceeding expectations despite that country's economic issues. Overall, almost 50 percent all cloud sites are outside the United States. QAD president Pam Lopker said new cloud companies are often coming on board gradually. "Companies more willing to commit to point solutions rather than a total ERP upgrade," she said. New clients often buy a system for one division and then add a division or two at a time.
CURRENCY SAPS QAD REVENUE Featured
QAD took a currency hit in its maintenance and professional services revenue for the second quarter ended July 31. However, despite that, the company posted $1.6 million in net income, a rise of 66.6 percent from $985,000 in last year's corresponding quarter. Revenue fell to $71.3 million in the most recently ended quarter, down 2.4 percent from $73.1 million. Maintenance revenue fell to $71.3 million, a drop of 6.8 percent from a year earlier and professional services revenue fell 8.2 percent to $19.8 million from $21.5 million. "We continue to exceed our expectations, but currency muddies our results," CEO Karl Lopker said in a recent earnings webcast.
