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)
|
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | 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 May 28, 2015, entitled “QAD Reports Fiscal 2016 First Quarter Financial Results”
|
Date: May 28, 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
|
· | Subscription revenue growth of 52 percent to $9.4 million, up from $6.2 million. |
· | License revenue growth of 3 percent to $6.9 million, up from $6.7 million. |
· | Professional services revenue remained steady at $19.6 million for both periods. |
· | Maintenance and other revenue was $33.4 million, compared with $36.1 million. |
· | GAAP net income of $549,000 or $0.03 per diluted Class A share and $0.02 per diluted Class B share, compared with a net loss of $76,000 or $0.01 per Class A share and $0.00 per Class B share. |
· | Non-GAAP net income (defined as GAAP net income before stock-based compensation expense, amortization of purchased intangible assets, the change in fair value of the interest rate swap and income tax adjustments) of $1.6 million, or $0.09 per diluted Class A share and $0.07 per diluted Class B share, compared with $0.9 million, or $0.06 per diluted Class A share and $0.05 per diluted Class B share. |
· | Received orders from 17 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 one order was in excess of $2.0 million; |
· | Received license or cloud orders from companies across QAD’s six vertical markets, including: Ajinomoto Althea, Inc., Alcoa, Inc., Autoliv, Inc., Comvita New Zealand Ltd., CoorsTek LLC, Ferro Argentina Corporation, Findus France, Omron Corporation, Samtec, Inc., Smiths Group plc and TRW Automotive; |
· | Launched a new User Experience (UX) that brings the power of QAD Cloud ERP to the browser, providing a consistent, individually adaptable and device-independent user experience that is personalized to the activity and the user to increase efficiency, simplify task completion and provide insight to decisions; |
· | Named ERP Customer Experience Leader by Consumer Goods Technology Magazine readers for the third consecutive year; |
· | Held its Explore 2015 annual customer conference in Washington, D.C., with a record number of customers presenting at the conference; and |
· | Underwriters exercised, in full, an option to purchase additional shares related to QAD’s secondary stock offering. As a result, 450,000 shares of Class A common stock were issued generating approximately $8.4 million in additional net proceeds. |
· | Total revenue of approximately $70 million, including approximately $8.8 million of subscription revenue. |
· | Additional stock compensation expense in the second quarter related to its annual stock grants of approximately $1.1 million for total stock compensation expense of $2.4 million. |
· | GAAP earnings per share of approximately breakeven per diluted Class A and diluted Class B share. |
· | 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 $295 million, including approximately $37.5 million of subscription revenue. |
· | Stock compensation expense of approximately $7.6 million. |
· | 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 $0.84 per diluted Class A share and $0.70 per diluted Class B share. |
When: | Thursday, May 28, 2015 |
Time: | 2:00 p.m. PT (5:00 p.m. ET) |
Phone: | 800-230-1059 (domestic); 612-234-9959 (international) |
Replay: | Accessible through midnight June 4, 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 expense, amortization of purchased intangible assets, the change in fair value of the 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
April 30,
|
||||||||
2015
|
2014
|
|||||||
Revenue:
|
||||||||
License fees
|
$
|
6,851
|
$
|
6,652
|
||||
Subscription fees
|
9,419
|
6,192
|
||||||
Maintenance and other
|
33,383
|
36,076
|
||||||
Professional services
|
19,612
|
19,565
|
||||||
Total revenue
|
69,265
|
68,485
|
||||||
Cost of revenue:
|
||||||||
License
|
929
|
900
|
||||||
Subscription
|
5,064
|
3,786
|
||||||
Maintenance and other
|
7,777
|
8,170
|
||||||
Professional services
|
18,328
|
18,575
|
||||||
Total cost of revenue
|
32,098
|
31,431
|
||||||
Gross profit
|
37,167
|
37,054
|
||||||
Operating expenses:
|
||||||||
Sales and marketing
|
17,145
|
16,477
|
||||||
Research and development
|
10,657
|
11,195
|
||||||
General and administrative
|
8,441
|
8,904
|
||||||
Amortization of intangibles from acquisitions
|
164
|
180
|
||||||
Total operating expenses
|
36,407
|
36,756
|
||||||
Operating income
|
760
|
298
|
||||||
Other (income) expense:
|
||||||||
Interest income
|
(57
|
)
|
(57
|
)
|
||||
Interest expense
|
183
|
181
|
||||||
Other (income) expense, net
|
(119
|
)
|
226
|
|||||
Total other expense, net
|
7
|
350
|
||||||
Income (loss) before income taxes
|
753
|
(52
|
)
|
|||||
Income tax expense
|
204
|
24
|
||||||
Net income (loss)
|
$
|
549
|
$
|
(76
|
)
|
|||
Diluted net income (loss) per share
|
||||||||
Class A
|
$
|
0.03
|
$
|
(0.01
|
)
|
|||
Class B
|
$
|
0.02
|
$
|
(0.00
|
)
|
|||
Diluted Weighted Shares
|
||||||||
Class A
|
16,048
|
12,628
|
||||||
Class B
|
3,279
|
3,168
|
April 30,
|
January 31,
|
|||||||
2015
|
2015
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and equivalents
|
$
|
130,864
|
$
|
120,526
|
||||
Accounts receivable, net
|
51,222
|
78,887
|
||||||
Deferred tax assets, net
|
9,266
|
9,313
|
||||||
Other current assets
|
15,436
|
14,799
|
||||||
Total current assets
|
206,788
|
223,525
|
||||||
Property and equipment, net
|
33,240
|
33,154
|
||||||
Capitalized software costs, net
|
2,237
|
2,485
|
||||||
Goodwill
|
10,857
|
10,911
|
||||||
Long-term deferred tax assets, net
|
10,063
|
9,680
|
||||||
Other assets, net
|
3,440
|
3,614
|
||||||
Total assets
|
$
|
266,625
|
$
|
283,369
|
||||
Liabilities and stockholders' equity
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$
|
409
|
$
|
406
|
||||
Accounts payable and other current liabilities
|
35,147
|
48,637
|
||||||
Deferred revenue
|
91,408
|
102,721
|
||||||
Total current liabilities
|
126,964
|
151,764
|
||||||
Long-term debt
|
14,575
|
14,680
|
||||||
Other liabilities
|
4,764
|
5,219
|
||||||
Stockholders' equity:
|
||||||||
Common stock
|
21
|
20
|
||||||
Additional paid-in capital
|
194,039
|
185,546
|
||||||
Treasury stock
|
(22,178
|
)
|
(22,977
|
)
|
||||
Accumulated deficit
|
(44,215
|
)
|
(43,465
|
)
|
||||
Accumulated other comprehensive loss
|
(7,345
|
)
|
(7,418
|
)
|
||||
Total stockholders' equity
|
120,322
|
111,706
|
||||||
Total liabilities and stockholders' equity
|
$
|
266,625
|
$
|
283,369
|
Three Months Ended
|
||||||||
April 30,
|
||||||||
2015
|
2014
|
|||||||
Net cash provided by operating activities
|
$
|
4,336
|
$
|
3,178
|
||||
Cash flows from investing activities:
|
||||||||
Purchase of property and equipment
|
(1,140
|
)
|
(570
|
)
|
||||
Capitalized software costs
|
(28
|
)
|
(56
|
)
|
||||
Net cash used in investing activities
|
(1,168
|
)
|
(626
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Repayments of debt
|
(102
|
)
|
(97
|
)
|
||||
Tax payments, net of proceeds, related to stock awards
|
(391
|
)
|
(577
|
)
|
||||
Excess tax benefits from share-based payment arrangements
|
151
|
143
|
||||||
Payment of contingent liability associated with acquisitions
|
(750
|
)
|
(471
|
)
|
||||
Proceeds from issuance of common stock, net of issuance costs
|
8,365
|
-
|
||||||
Net cash provided by (used in) financing activities
|
7,273
|
(1,002
|
)
|
|||||
Effect of exchange rates on cash and equivalents
|
(103
|
)
|
691
|
|||||
Net increase in cash and equivalents
|
10,338
|
2,241
|
||||||
Cash and equivalents at beginning of period
|
120,526
|
75,984
|
||||||
Cash and equivalents at end of period
|
$
|
130,864
|
$
|
78,225
|
Three Months Ended
April 30,
|
||||||||
2015
|
2014
|
|||||||
Total revenue
|
$
|
69,265
|
$
|
68,485
|
||||
Net income (loss)
|
549
|
(76
|
)
|
|||||
Add back:
|
||||||||
Net interest expense
|
126
|
124
|
||||||
Depreciation
|
999
|
924
|
||||||
Amortization
|
452
|
492
|
||||||
Income taxes
|
204
|
24
|
||||||
EBITDA
|
$
|
2,330
|
$
|
1,488
|
||||
Add back:
|
||||||||
Non-cash stock-based compensation
|
1,306
|
876
|
||||||
Change in fair value of interest rate swap
|
(245
|
)
|
46
|
|||||
Adjusted EBITDA
|
$
|
3,391
|
$
|
2,410
|
||||
Adjusted EBITDA margin
|
5
|
%
|
4
|
%
|
||||
Non-GAAP net income reconciliation
|
||||||||
Net income (loss)
|
$
|
549
|
$
|
(76
|
)
|
|||
Add back:
|
||||||||
Non-cash stock-based compensation
|
1,306
|
876
|
||||||
Amortization of purchased intangible assets
|
344
|
378
|
||||||
Change in fair value of interest rate swap
|
(245
|
)
|
46
|
|||||
Income tax adjustments
|
(351
|
)
|
(325
|
)
|
||||
Non-GAAP net income
|
$
|
1,603
|
$
|
899
|
||||
Non-GAAP earnings per diluted Class A share reconciliation
|
||||||||
Earnings (loss) per diluted Class A share
|
$
|
0.03
|
$
|
(0.01
|
)
|
|||
Add back:
|
||||||||
Non-cash stock-based compensation
|
0.07
|
0.06
|
||||||
Amortization of purchased intangible assets
|
0.02
|
0.03
|
||||||
Change in fair value of interest rate swap
|
(0.01
|
)
|
(0.00
|
)
|
||||
Income tax adjustments
|
(0.02
|
)
|
(0.02
|
)
|
||||
Non-GAAP earnings per diluted Class A share
|
$
|
0.09
|
$
|
0.06
|
||||
Shares used in computing earnings per diluted Class A share
|
16,048
|
12,628
|
||||||
Non-GAAP earnings per diluted Class B share reconciliation
|
||||||||
Earnings (loss) per diluted Class B share
|
$
|
0.02
|
$
|
(0.00
|
)
|
|||
Add back:
|
||||||||
Non-cash stock-based compensation
|
0.06
|
0.05
|
||||||
Amortization of purchased intangible assets
|
0.02
|
0.02
|
||||||
Change in fair value of interest rate swap
|
(0.01
|
)
|
0.00
|
|||||
Income tax adjustments
|
(0.02
|
)
|
(0.02
|
)
|
||||
Non-GAAP earnings per diluted Class B share
|
$
|
0.07
|
$
|
0.05
|
||||
Shares used in computing earnings per diluted Class B share
|
3,279
|
3,168
|
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