QAD Continues to Wade Through Red Ink
P.J. Jakovljevic - September 25, 2000

Event Summary

In August, QAD Inc., one of the leading ERP vendors, reported revenue of $53.2 million for the second quarter ended July 31, 2000, up 3% from revenue of $51.6 million in the first quarter of fiscal year 2001. However, the second quarter revenue performance compares unfavorably to $58.3 million for the same period last year (See Figure 1). Excluding a $3.2 million valuation allowance for US deferred tax assets, the second quarter net loss was $5.7 million, or $0.17 per diluted share, a 36% improvement over the first quarter fiscal year 2001 net loss of $8.8 million, or $0.26 per diluted share. This compares to a net loss of $2.8 million, or $0.09 per diluted share, for the second quarter of fiscal year 2000, excluding the prior year restructuring charge of $1.2 million. Including the valuation allowance, the net loss for the second quarter was $8.8 million, or $0.26 per diluted share...