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)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
d) | Exhibits. |
Exhibit No.
|
Description
|
|
Press Release, dated as of March 12, 2015, entitled “QAD Reports Record Revenue for Fiscal 2015 Fourth Quarter and Full Year”
|
Date: March 12, 2015
|
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
|
· | License revenue growth of 14 percent to $16.7 million, up from $14.6 million. |
· | Subscription revenue growth of 36 percent to $7.9 million, up from $5.8 million. |
· | Professional services revenue growth of 12 percent to $20.9 million, up from $18.7 million. |
· | Maintenance and other revenue of $34.1 million, compared with $34.5 million. |
· | GAAP net income of $6.9 million, or $0.42 per diluted Class A share and $0.36 per diluted Class B share, compared with $4.3 million, or $0.27 per diluted Class A share and $0.23 per diluted Class B share. |
· | Non-GAAP net income (defined as GAAP net income before stock-based compensation, amortization of purchased intangible assets, gain/loss adjustments on the company’s interest rate swap and certain income tax adjustments) of $8.7 million, or $0.52 per diluted Class A share and $0.46 per diluted Class B share, compared with $5.5 million, or $0.35 per diluted Class A share and $0.30 per diluted Class B share. |
· | License revenue growth of 13 percent to $40.9 million, up from $36.2 million. |
· | Subscription revenue growth of 45 percent to $28.2 million, up from $19.4 million. |
· | Professional services revenue growth of 19 percent to $84.7 million, up from $71.2 million. |
· | Maintenance and other revenue of $141.3 million, compared with $139.6 million. |
· | Annualized subscription revenue run rate of approximately $34 million. |
· | GAAP net income increased to $12.9 million, or $0.79 per diluted Class A share and $0.68 per diluted Class B share, for fiscal 2015, up from $6.4 million, or $0.41 per diluted Class A share and $0.34 per diluted Class B share, for fiscal 2014. |
· | Non-GAAP net income of $19.9 million, or $1.21 per diluted Class A share and $1.04 per diluted Class B share, compared with $12.3 million, or $0.78 per diluted Class A share and $0.66 per diluted Class B share. |
· | Received orders from 47 customers representing more than $500,000 each in combined license, maintenance, subscription and professional services billings, including 19 orders in excess of $1.0 million, of which six orders were in excess of $2.0 million; |
· | Received license or cloud orders from companies across QAD’s six vertical markets, including: AEP Industries Inc., Akebono Brake Industry Co., Apotex Nederland B.V., Baxter Healthcare Corporation, Eaton Corporation, FN America LLC, Lear Corporation, Lem International S.A., Oras Oy, Thermo Fisher Scientific Inc., TRW Automotive, Visteon Corporation and Youngs Seafood Limited; |
· | Launched the latest version of QAD’s demand and supply chain planning solution, DynaSys DSCP 2015, a next generation planning solution featuring an enhanced user interface, web portal and cloud accessibility; |
· | Completed a successful secondary offering of 2 million shares of Class A common stock, generating proceeds of approximately $37 million after deducting underwriting discounts, commissions and offering expenses; and |
· | On February 18, 2015 the offering underwriters exercised in full an option to purchase additional shares. As a result, 450,000 shares of Class A common stock were issued generating approximately $8.4 million in additional proceeds. |
· | Total revenue of approximately $69 million, including approximately $8.6 million of subscription revenue. |
· | GAAP earnings per share of approximately breakeven. |
· | Non-GAAP earnings per share of approximately $0.11 per diluted Class A share and $0.09 per diluted Class B share. |
· | Total revenue of approximately $302 million, including approximately $39 million of subscription revenue. |
· | GAAP earnings per share of approximately $0.49 per diluted Class A share and $0.41 per diluted Class B share. |
· | Non-GAAP earnings per share of approximately $0.91 per diluted Class A share and $0.76 per diluted Class B share. |
When: | Thursday, March 12, 2015 |
Time: | 2:00 p.m. PT (5:00 p.m. ET) |
Phone: | 800-230-1085 (domestic); 612-288-0337 (international) |
Replay: | Accessible through midnight March 19, 2015 |
Webcast: | Accessible at www.qad.com; archive available for approximately one year |
· | Non-GAAP adjusted EBITDA - EBITDA is GAAP net income before net interest expense, income tax expense, depreciation and amortization. Non-GAAP Adjusted EBITDA is EBITDA less stock-based compensation expense and the change in the fair value of the interest rate swap. |
· | Non-GAAP adjusted EBITDA margins - Calculated by dividing Non-GAAP adjusted EBITDA by total revenue. |
· | Non-GAAP net income - GAAP net income before stock-based compensation, amortization of purchased intangible assets, gain/loss adjustments on the company’s interest rate swap and certain income tax adjustments. |
· | Non-GAAP earnings per diluted share - Non-GAAP net income allocated to Class A and Class B shares divided by the weighted average diluted shares outstanding of each class. |
Three Months Ended
January 31,
|
Twelve Months Ended
January 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Revenue:
|
||||||||||||||||
License fees
|
$
|
16,686
|
$
|
14,593
|
$
|
40,917
|
$
|
36,176
|
||||||||
Subscription fees
|
7,873
|
5,805
|
28,217
|
19,406
|
||||||||||||
Maintenance and other
|
34,070
|
34,473
|
141,295
|
139,557
|
||||||||||||
Professional services
|
20,933
|
18,659
|
84,672
|
71,172
|
||||||||||||
Total revenue
|
79,562
|
73,530
|
295,101
|
266,311
|
||||||||||||
Cost of revenue:
|
||||||||||||||||
License
|
1,746
|
1,807
|
5,016
|
4,978
|
||||||||||||
Subscription
|
5,017
|
3,639
|
17,149
|
12,462
|
||||||||||||
Maintenance and other
|
8,167
|
7,800
|
32,511
|
32,485
|
||||||||||||
Professional services
|
18,979
|
17,453
|
76,954
|
67,081
|
||||||||||||
Total cost of revenue
|
33,909
|
30,699
|
131,630
|
117,006
|
||||||||||||
Gross profit
|
45,653
|
42,831
|
163,471
|
149,305
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Sales and marketing
|
19,466
|
18,920
|
69,785
|
66,009
|
||||||||||||
Research and development
|
10,066
|
10,106
|
42,315
|
41,237
|
||||||||||||
General and administrative
|
8,216
|
7,793
|
34,680
|
31,946
|
||||||||||||
Amortization of intangibles from acquisitions
|
171
|
179
|
706
|
710
|
||||||||||||
Total operating expenses
|
37,919
|
36,998
|
147,486
|
139,902
|
||||||||||||
Operating income
|
7,734
|
5,833
|
15,985
|
9,403
|
||||||||||||
Other (income) expense:
|
||||||||||||||||
Interest income
|
(73
|
)
|
(59
|
)
|
(242
|
)
|
(284
|
)
|
||||||||
Interest expense
|
213
|
199
|
811
|
829
|
||||||||||||
Other (income), net
|
(113
|
)
|
(421
|
)
|
(169
|
)
|
(1,294
|
)
|
||||||||
Total other expense (income), net
|
27
|
(281
|
)
|
400
|
(749
|
)
|
||||||||||
Income before income taxes
|
7,707
|
6,114
|
15,585
|
10,152
|
||||||||||||
Income tax expense
|
760
|
1,768
|
2,639
|
3,766
|
||||||||||||
Net income
|
$
|
6,947
|
$
|
4,346
|
$
|
12,946
|
$
|
6,386
|
||||||||
Diluted net income per share
|
||||||||||||||||
Class A
|
$
|
0.42
|
$
|
0.27
|
$
|
0.79
|
$
|
0.41
|
||||||||
Class B
|
$
|
0.36
|
$
|
0.23
|
$
|
0.68
|
$
|
0.34
|
||||||||
Diluted Weighted Shares
|
||||||||||||||||
Class A
|
13,790
|
13,224
|
13,553
|
12,985
|
||||||||||||
Class B
|
3,271
|
3,249
|
3,271
|
3,238
|
January 31,
2015 |
January 31,
2014 |
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and equivalents
|
$
|
120,526
|
$
|
75,984
|
||||
Accounts receivable, net
|
78,887
|
71,337
|
||||||
Deferred tax assets, net
|
9,313
|
8,133
|
||||||
Other current assets
|
14,799
|
14,980
|
||||||
Total current assets
|
223,525
|
170,434
|
||||||
Property and equipment, net
|
33,154
|
33,085
|
||||||
Capitalized software costs, net
|
2,485
|
3,315
|
||||||
Goodwill
|
10,911
|
11,377
|
||||||
Long-term deferred tax assets, net
|
9,680
|
11,788
|
||||||
Other assets, net
|
3,614
|
4,814
|
||||||
Total assets
|
$
|
283,369
|
$
|
234,813
|
||||
Liabilities and stockholders' equity
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$
|
406
|
$
|
389
|
||||
Accounts payable and other current liabilities
|
48,637
|
45,241
|
||||||
Deferred revenue
|
102,721
|
104,160
|
||||||
Total current liabilities
|
151,764
|
149,790
|
||||||
Long-term debt
|
14,680
|
15,085
|
||||||
Other liabilities
|
5,219
|
5,733
|
||||||
Stockholders' equity:
|
||||||||
Common stock
|
20
|
18
|
||||||
Additional paid-in capital
|
185,546
|
150,837
|
||||||
Treasury stock
|
(22,977
|
)
|
(28,220
|
)
|
||||
Accumulated deficit
|
(43,465
|
)
|
(51,472
|
)
|
||||
Accumulated other comprehensive loss
|
(7,418
|
)
|
(6,958
|
)
|
||||
Total stockholders' equity
|
111,706
|
64,205
|
||||||
Total liabilities and stockholders' equity
|
$
|
283,369
|
$
|
234,813
|
Twelve Months Ended
January 31, |
||||||||
2015
|
2014
|
|||||||
Net cash provided by operating activities
|
$
|
23,697
|
$
|
24,140
|
||||
Cash flows from investing activities:
|
||||||||
Purchase of property and equipment
|
(4,568
|
)
|
(4,746
|
)
|
||||
Capitalized software costs
|
(311
|
)
|
(366
|
)
|
||||
Net cash used in investing activities
|
(4,879
|
)
|
(5,112
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Repayments of debt
|
(388
|
)
|
(372
|
)
|
||||
Tax payments, net of proceeds, related to stock awards
|
(2,557
|
)
|
(1,286
|
)
|
||||
Excess tax benefits from share-based payment arrangements
|
266
|
72
|
||||||
Payment of contingent liability associated with acquisitions
|
(471
|
)
|
-
|
|||||
Repurchase of stock
|
-
|
(686
|
)
|
|||||
Proceeds from issuance of common stock, net of issuance costs
|
37,046
|
-
|
||||||
Dividends paid in cash
|
(4,452
|
)
|
(5,304
|
)
|
||||
Net cash provided by (used in) financing activities
|
29,444
|
(7,576
|
)
|
|||||
Effect of exchange rates on cash and equivalents
|
(3,720
|
)
|
(477
|
)
|
||||
Net increase in cash and equivalents
|
44,542
|
10,975
|
||||||
Cash and equivalents at beginning of period
|
75,984
|
65,009
|
||||||
Cash and equivalents at end of period
|
$
|
120,526
|
$
|
75,984
|
Three Months Ended
January 31,
|
Twelve Months Ended
January 31,
|
|||||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Total revenue
|
$
|
79,562
|
$
|
73,530
|
$
|
295,101
|
$
|
266,311
|
||||||||
Net Income
|
6,947
|
4,346
|
12,946
|
6,386
|
||||||||||||
Add back:
|
||||||||||||||||
Net interest expense
|
140
|
140
|
569
|
545
|
||||||||||||
Depreciation
|
1,007
|
1,119
|
3,816
|
4,080
|
||||||||||||
Amortization
|
468
|
491
|
1,935
|
1,979
|
||||||||||||
Income taxes
|
760
|
1,768
|
2,639
|
3,766
|
||||||||||||
EBITDA
|
$
|
9,322
|
$
|
7,864
|
$
|
21,905
|
$
|
16,756
|
||||||||
Add back:
|
||||||||||||||||
Non-cash stock comp expense
|
1,199
|
966
|
4,993
|
4,680
|
||||||||||||
Change in fair value of interest rate swap
|
556
|
(85
|
)
|
877
|
(634
|
)
|
||||||||||
Adjusted EBITDA
|
$
|
11,077
|
$
|
8,745
|
$
|
27,775
|
$
|
20,802
|
||||||||
Adjusted EBITDA margin
|
14
|
%
|
12
|
%
|
9
|
%
|
8
|
%
|
||||||||
Non-GAAP net income reconciliation
|
||||||||||||||||
Net income
|
$
|
6,947
|
$
|
4,346
|
$
|
12,946
|
$
|
6,386
|
||||||||
Add back:
|
||||||||||||||||
Non-cash stock-based compensation
|
1,199
|
966
|
4,993
|
4,680
|
||||||||||||
Amortization of purchased intangible assets
|
363
|
377
|
1,493
|
1,505
|
||||||||||||
Change in fair value of interest rate swap
|
556
|
(85
|
)
|
877
|
(634
|
)
|
||||||||||
Income tax adjustments
|
(344
|
)
|
(84
|
)
|
(459
|
)
|
330
|
|||||||||
Non-GAAP net income
|
$
|
8,721
|
$
|
5,520
|
$
|
19,850
|
$
|
12,267
|
||||||||
Non-GAAP earnings per diluted Class A share reconciliation
|
||||||||||||||||
Earnings per diluted Class A share
|
$
|
0.42
|
$
|
0.27
|
$
|
0.79
|
$
|
0.41
|
||||||||
Add back:
|
||||||||||||||||
Non-cash stock-based compensation
|
0.07
|
0.06
|
0.31
|
0.30
|
||||||||||||
Amortization of purchased intangible assets
|
0.02
|
0.02
|
0.09
|
0.09
|
||||||||||||
Change in fair value of interest rate swap
|
0.03
|
(0.00
|
)
|
0.05
|
(0.04
|
)
|
||||||||||
Income tax adjustments
|
(0.02
|
)
|
(0.00
|
)
|
(0.03
|
)
|
0.02
|
|||||||||
Non-GAAP earnings per diluted Class A share
|
$
|
0.52
|
$
|
0.35
|
$
|
1.21
|
$
|
0.78
|
||||||||
Shares used in computing earnings per diluted Class A share
|
13,790
|
13,224
|
13,553
|
12,985
|
||||||||||||
Non-GAAP earnings per diluted Class B share reconciliation
|
||||||||||||||||
Earnings per diluted Class B share
|
$
|
0.36
|
$
|
0.23
|
$
|
0.68
|
$
|
0.34
|
||||||||
Add back:
|
||||||||||||||||
Non-cash stock-based compensation
|
0.07
|
0.05
|
0.26
|
0.25
|
||||||||||||
Amortization of purchased intangible assets
|
0.02
|
0.02
|
0.08
|
0.08
|
||||||||||||
Change in fair value of interest rate swap
|
0.03
|
(0.00
|
)
|
0.04
|
(0.03
|
)
|
||||||||||
Income tax adjustments
|
(0.02
|
)
|
(0.00
|
)
|
(0.02
|
)
|
0.02
|
|||||||||
Non-GAAP earnings per diluted Class B share
|
$
|
0.46
|
$
|
0.30
|
$
|
1.04
|
$
|
0.66
|
||||||||
Shares used in computing earnings per diluted Class B share
|
3,271
|
3,249
|
3,271
|
3,238
|
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