Delaware
|
0-22823
|
77-0105228
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification Number)
|
100 Innovation Place, Santa Barbara, California
|
93108
|
(Address of principal executive offices)
|
(Zip code)
|
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
d) | Exhibits. |
Exhibit No.
|
Description
|
|
Press Release, dated as of November 25, 2014, entitled “QAD Reports Record Revenue for Third Quarter and Year-to-Date Period”
|
Date: November 25, 2014
|
By:
|
/s/ Daniel Lender
|
Daniel Lender
|
||
Chief Financial Officer
|
John Neale
|
Laurie Berman/Matt Sheldon
|
QAD Senior Vice President and Treasurer
|
PondelWilkinson Inc.
|
805.566.5117
|
310.279.5980
|
investor@qad.com
|
pwinvestor@pondel.com
|
· | Received orders from 19 customers representing more than $500,000 each in combined license, maintenance, subscription and professional services billings, including four orders in excess of $1.0 million, of which two orders were in excess of $2.0 million; |
· | Received license or cloud orders from companies across QAD’s six vertical markets, including: Confluence Outdoor LLC, Detmold Packaging Pty Ltd, Deutsche Bank United Kingdom, Greencroft Bottling Company, International Cookware SASU, Lear Corporation, Nexteer Automotive, NHK Spring Co., Ltd., Vascular Solutions Inc and Youngs Seafood Limited; |
· | During and subsequent to the end of the third quarter, held five user group meetings throughout the Americas and Europe with more than 700 registered attendees; and |
· | Celebrated 35 years in the manufacturing ERP software industry. |
Three Months Ended
October 31,
|
Nine Months Ended
October 31,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Revenue:
|
||||||||||||||||
License fees
|
$
|
8,616
|
$
|
6,761
|
$
|
24,231
|
$
|
21,583
|
||||||||
Subscription fees
|
7,710
|
5,104
|
20,344
|
13,601
|
||||||||||||
Maintenance and other
|
35,029
|
35,629
|
107,225
|
105,084
|
||||||||||||
Professional services
|
22,649
|
18,166
|
63,739
|
52,513
|
||||||||||||
Total revenue
|
74,004
|
65,660
|
215,539
|
192,781
|
||||||||||||
Cost of revenue:
|
||||||||||||||||
License
|
1,217
|
1,158
|
3,270
|
3,171
|
||||||||||||
Maintenance, subscription and other
|
12,055
|
11,399
|
36,476
|
33,508
|
||||||||||||
Professional services
|
19,799
|
16,348
|
57,975
|
49,628
|
||||||||||||
Total cost of revenue
|
33,071
|
28,905
|
97,721
|
86,307
|
||||||||||||
Gross profit
|
40,933
|
36,755
|
117,818
|
106,474
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Sales and marketing
|
16,421
|
15,183
|
50,319
|
47,089
|
||||||||||||
Research and development
|
10,152
|
9,817
|
32,249
|
31,131
|
||||||||||||
General and administrative
|
8,295
|
7,776
|
26,464
|
24,153
|
||||||||||||
Amortization of intangibles from acquisitions
|
176
|
178
|
535
|
531
|
||||||||||||
Total operating expenses
|
35,044
|
32,954
|
109,567
|
102,904
|
||||||||||||
Operating income
|
5,889
|
3,801
|
8,251
|
3,570
|
||||||||||||
Other (income) expense:
|
||||||||||||||||
Interest income
|
(56
|
)
|
(55
|
)
|
(169
|
)
|
(225
|
)
|
||||||||
Interest expense
|
185
|
218
|
598
|
630
|
||||||||||||
Other expense (income), net
|
(164
|
)
|
209
|
(56
|
)
|
(873
|
)
|
|||||||||
Total other (income) expense, net
|
(35
|
)
|
372
|
373
|
(468
|
)
|
||||||||||
Income before income taxes
|
5,924
|
3,429
|
7,878
|
4,038
|
||||||||||||
Income tax expense
|
834
|
1,380
|
1,879
|
1,998
|
||||||||||||
Net income
|
$
|
5,090
|
$
|
2,049
|
$
|
5,999
|
$
|
2,040
|
||||||||
Diluted net income per share
|
||||||||||||||||
Class A
|
$
|
0.31
|
$
|
0.13
|
$
|
0.37
|
$
|
0.13
|
||||||||
Class B
|
$
|
0.27
|
$
|
0.11
|
$
|
0.31
|
$
|
0.11
|
||||||||
Diluted Weighted Shares
|
||||||||||||||||
Class A
|
13,487
|
12,990
|
13,474
|
12,930
|
||||||||||||
Class B
|
3,265
|
3,235
|
3,270
|
3,234
|
October 31,
|
January 31,
|
|||||||
2014
|
2014
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and equivalents
|
$
|
71,411
|
$
|
75,984
|
||||
Accounts receivable, net
|
46,432
|
71,337
|
||||||
Deferred tax assets, net
|
8,033
|
8,133
|
||||||
Other current assets
|
15,904
|
14,980
|
||||||
Total current assets
|
141,780
|
170,434
|
||||||
Property and equipment, net
|
33,348
|
33,085
|
||||||
Capitalized software costs, net
|
2,571
|
3,315
|
||||||
Goodwill
|
11,214
|
11,377
|
||||||
Long-term deferred tax assets, net
|
9,884
|
11,788
|
||||||
Other assets, net
|
3,954
|
4,814
|
||||||
Total assets
|
$
|
202,751
|
$
|
234,813
|
||||
Liabilities and stockholders' equity
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$
|
401
|
$
|
389
|
||||
Accounts payable and other current liabilities
|
40,697
|
45,241
|
||||||
Deferred revenue
|
72,703
|
104,160
|
||||||
Total current liabilities
|
113,801
|
149,790
|
||||||
Long-term debt
|
14,782
|
15,085
|
||||||
Other liabilities
|
5,205
|
5,733
|
||||||
Stockholders' equity:
|
||||||||
Common stock
|
18
|
18
|
||||||
Additional paid-in capital
|
147,804
|
150,837
|
||||||
Treasury stock
|
(23,273
|
)
|
(28,220
|
)
|
||||
Accumulated deficit
|
(49,294
|
)
|
(51,472
|
)
|
||||
Accumulated other comprehensive loss
|
(6,292
|
)
|
(6,958
|
)
|
||||
Total stockholders' equity
|
68,963
|
64,205
|
||||||
Total liabilities and stockholders' equity
|
$
|
202,751
|
$
|
234,813
|
Nine Months Ended
|
||||||||
October 31,
|
||||||||
2014
|
2013
|
|||||||
Net cash provided by operating activities
|
$
|
5,031
|
$
|
11,575
|
||||
Cash flows from investing activities:
|
||||||||
Purchase of property and equipment
|
(3,337
|
)
|
(3,966
|
)
|
||||
Capitalized software costs
|
(115
|
)
|
(217
|
)
|
||||
Net cash used in investing activities
|
(3,452
|
)
|
(4,183
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Repayments of debt
|
(291
|
)
|
(279
|
)
|
||||
Tax payments, net of proceeds, related to stock awards
|
(2,354
|
)
|
(894
|
)
|
||||
Excess tax benefits from share-based payment arrangements
|
-
|
82
|
||||||
Payment of contingent liability associated with acquisitions
|
(471
|
)
|
-
|
|||||
Repurchase of stock
|
-
|
(686
|
)
|
|||||
Dividends paid in cash
|
(3,334
|
)
|
(4,209
|
)
|
||||
Net cash used in financing activities
|
(6,450
|
)
|
(5,986
|
)
|
||||
Effect of exchange rates on cash and equivalents
|
298
|
(616
|
)
|
|||||
Net (decrease) increase in cash and equivalents
|
(4,573
|
)
|
790
|
|||||
Cash and equivalents at beginning of period
|
75,984
|
65,009
|
||||||
Cash and equivalents at end of period
|
$
|
71,411
|
$
|
65,799
|
Three Months Ended
October 31,
|
Nine Months Ended
October 31,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Non-GAAP net income reconciliation
|
||||||||||||||||
GAAP net income
|
$
|
5,090
|
$
|
2,049
|
$
|
5,999
|
$
|
2,040
|
||||||||
Add back:
|
||||||||||||||||
Non-cash stock-based compensation
|
1,209
|
1,220
|
3,794
|
3,714
|
||||||||||||
Amortization of purchased intangible assets
|
374
|
377
|
1,130
|
1,128
|
||||||||||||
Change in fair value of interest rate swap
|
214
|
159
|
320
|
(549
|
)
|
|||||||||||
Income tax adjustments
|
(294
|
)
|
(223
|
)
|
(870
|
)
|
(182
|
)
|
||||||||
Non-GAAP net income
|
$
|
6,593
|
$
|
3,582
|
$
|
10,373
|
$
|
6,151
|
||||||||
Non-GAAP earnings per diluted Class A share reconciliation
|
||||||||||||||||
GAAP earnings per diluted Class A share
|
$
|
0.31
|
$
|
0.13
|
$
|
0.37
|
$
|
0.13
|
||||||||
Add back:
|
||||||||||||||||
Non-cash stock-based compensation
|
0.08
|
0.08
|
0.23
|
0.24
|
||||||||||||
Amortization of purchased intangible assets
|
0.02
|
0.02
|
0.07
|
0.07
|
||||||||||||
Change in fair value of interest rate swap
|
0.01
|
0.01
|
0.02
|
(0.04
|
)
|
|||||||||||
Income tax adjustments
|
(0.02
|
)
|
(0.01
|
)
|
(0.05
|
)
|
(0.01
|
)
|
||||||||
Non-GAAP earnings per diluted Class A share
|
$
|
0.40
|
$
|
0.23
|
$
|
0.64
|
$
|
0.39
|
||||||||
Shares used in computing earnings per diluted Class A share
|
13,487
|
12,990
|
13,474
|
12,930
|
||||||||||||
Non-GAAP earnings per diluted Class B share reconciliation
|
||||||||||||||||
GAAP earnings per diluted Class B share
|
$
|
0.27
|
$
|
0.11
|
$
|
0.31
|
$
|
0.11
|
||||||||
Add back:
|
||||||||||||||||
Non-cash stock-based compensation
|
0.06
|
0.06
|
0.20
|
0.20
|
||||||||||||
Amortization of purchased intangible assets
|
0.02
|
0.02
|
0.06
|
0.06
|
||||||||||||
Change in fair value of interest rate swap
|
0.01
|
0.01
|
0.02
|
(0.03
|
)
|
|||||||||||
Income tax adjustments
|
(0.02
|
)
|
(0.01
|
)
|
(0.05
|
)
|
(0.01
|
)
|
||||||||
Non-GAAP earnings per diluted Class B share
|
$
|
0.34
|
$
|
0.19
|
$
|
0.54
|
$
|
0.33
|
||||||||
Shares used in computing earnings per diluted Class B share
|
3,265
|
3,235
|
3,270
|
3,234
|
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