QAD Seemingly Nearing The Corner
P.J. Jakovljevic - March 28, 2002

Event Summary

On March 7, <b>QAD Inc.</b> (NASDAQ: QADI), a global provider of collaborative enterprise applications for manufacturing and distributing organizations, reported improved operating results for the fourth quarter and fiscal 2002 year ended January 31, 2002. For Q4 2001, revenues amounted to $53.5 million, up 8% from $49.6 million reported in the preceding Q3 2002, but 10% down compared to $59.2 million a year ago. Likewise, the license revenues of $19.6 million for Q4 2002 improved 36% over the preceding Q3 2002, but again down 10% compared to $21.8 million in Q4 2001. Pro forma net income for Q4 2002, which amounts have been adjusted to exclude amortization of intangibles from acquisitions, a goodwill impairment loss, restructuring charges and a deferred tax asset valuation allowance, was $4.1 million, compared with pro forma net income of $3.4 million for the prior-year fourth quarter. Reported net income for Q4 2002, however, was $1.0 million compared with $2.4 million in fiscal 2001 (See <b>Figure 1</b> below)...