Software provider QAD reports drop in 4th-quarter revenue; shares slide
By APFriday, March 12, 2010
QAD shares slide after 4th-quarter revenue drops
NEW YORK — Shares of QAD Inc. sank Friday after the business software provider reported a drop in fourth-quarter revenue and predicted another drop for the first quarter.
The company’s stock slid 20 cents, or 3.7 percent, to $5.30 in afternoon trading.
After the market closed Thursday, QAD reported fiscal fourth-quarter net income of $685,000, or 2 cents per share, for the quarter ended Jan. 31. That compares with a loss of $19.7 million, or 64 cents per share, in the same quarter a year ago. Part of that jump came because of a $14.4 million charge the company took in the year-ago quarter to account for the declining value of its assets.
Total operating expenses dropped nearly 41 percent to $29.7 million.
But sales fell 10 percent to $52.7 million. Licensing and services revenue slipped, offset partially by a gain in maintenance revenue.
The company also said it expects revenue for the current quarter of about $54 million, compared with $55.2 million in the prior-year quarter. It expects a profit of 3 cents per share, reversing last year’s loss.
For the full year, QAD earned $1.3 million, or 4 cents per share, compared with a loss of $23.7 million, or 77 cents per share, the year before. Revenue slid 18 percent to $215.2 million.
