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 10, 2016, entitled “QAD Reports Fiscal 2016 Fourth Quarter and Full Year Financial Results”
|
Date: March 10, 2016
|
By: |
/s/ Daniel Lender
|
Daniel Lender
|
||
Chief Financial Officer
|
![]() |
|
FOR IMMEDIATE RELEASE
|
|
For More Information, Contact:
|
|
Kara Bellamy
|
Laurie Berman | Matt Sheldon
|
Chief Accounting Officer
|
PondelWilkinson Inc.
|
805.566.6100
|
310.279.5980
|
investor@qad.com
|
pwinvestor@pondel.com
|
· | Subscription revenue of $38.8 million, versus $28.2 million. Currency had an approximate $900,000 negative impact on subscription revenue. |
· | License revenue of $29.9 million, compared with $40.9 million. Currency had an approximate $2.5 million negative impact on license revenue. |
· | Professional services revenue of $76.2 million, versus $84.7 million. Currency had an approximate $6.7 million negative impact on professional services revenue. |
· | Maintenance and other revenue of $133.0 million, compared with $141.3 million. Currency had an approximate $9.7 million negative impact on maintenance and other revenue. |
· | Gross profit for fiscal 2016 was $151.3 million, or 54 percent of total revenue, compared with $163.5 million, or 55 percent of total revenue, last year. Subscription gross profit margin was 47 percent for fiscal 2016, versus 39 percent for fiscal 2015. |
· | GAAP net income of $8.9 million, or $0.47 per diluted Class A share and $0.40 per diluted Class B share, compared with $12.9 million, or $0.79 per diluted Class A share and $0.68 per diluted Class B share, for fiscal 2015. |
· | 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 certain income tax adjustments) of $15.6 million, or $0.82 per diluted Class A share and $0.69 per diluted Class B share, compared with $18.5 million, or $1.13 per diluted Class A share and $0.96 per diluted Class B share, for fiscal 2015. |
· | Subscription revenue of $10.6 million, up from $7.9 million. Currency had an approximate $200,000 negative impact on subscription revenue. |
· | License revenue of $8.1 million, compared with $16.7 million. Currency had an approximate $600,000 negative impact on license revenue. |
· | Maintenance and other revenue of $32.4 million, compared with $34.1 million. Currency had an approximate $1.8 million negative impact on maintenance and other revenue. |
· | Professional services revenue of $18.2 million, versus $20.9 million. Currency had an approximate $1.4 million negative impact on professional services revenue. |
· | GAAP net income of $4.1 million, or $0.22 per diluted Class A share and $0.18 per diluted Class B share, compared with $6.9 million, or $0.42 per diluted Class A share and $0.36 per diluted Class B share. Diluted weighted average Class A shares outstanding increased 18 percent year-over-year. |
· | Non-GAAP net income of $5.9 million, or $0.31 per diluted Class A share and $0.26 per diluted Class B share, compared with $8.5 million, or $0.51 per diluted Class A share and $0.45 per diluted Class B share. |
· | Received orders from 49 customers representing more than $500,000 each in combined license, maintenance, subscription and professional services billings, including 13 orders in excess of $1.0 million; |
· | Received license or cloud orders from companies across QAD’s six vertical markets, including: Alcoa, Inc., Arthrex Inc., CoorsTek, Inc., Invacare Corporation, Johnson Controls, Inc., KYB Corporation, Lear Corporation, Li & Fung Group, Moog Inc., Nexteer Automotive, Saint-Gobain SA, Scosche Industries Inc., and Sugar Foods Corporation; |
· | Received Frost & Sullivan’s 2015 Global Cloud ERP Automotive Product Leadership Award for the QAD Cloud ERP Automotive Edition; |
· | Subsequent to the fourth quarter, Tony Winter, QAD’s Chief Technology Officer, was named CTO of the Year by the 2016 Global Excellence Awards; and |
· | Opened registration for 2016 Explore user conference, and announced futurist Jim Carroll, lean manufacturing expert Dr. James Womack and cybersecurity authority Dr. Doug White as headline speakers. |
· | Total revenue of $279 to $285 million, including $48 to $52 million of subscription revenue. |
· | GAAP earnings per share of approximately $0.30 to $0.38 per diluted Class A share and $0.24 to $0.32 per diluted Class B share. |
· | Non-GAAP earnings per share of approximately $0.65 to $0.73 per diluted Class A share and $0.53 to $0.61 per diluted Class B share. |
· | Total revenue of $64 to $66 million, including approximately $11 million of subscription revenue. |
· | GAAP loss per share of $0.08 to $0.06 per diluted Class A share and $0.07 to $0.05 per diluted Class B share. |
· | Non-GAAP earnings per share of $0.00 to $0.02 per diluted Class A and B shares. |
When:
|
Thursday, March 10, 2016
|
Time:
|
2:00 p.m. PT (5:00 p.m. ET)
|
Phone:
|
800-230-1092 (domestic); 612-234-9960 (international)
|
Replay:
|
Accessible through midnight March 17, 2016
|
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
January 31,
|
Twelve Months Ended
January 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Revenue:
|
||||||||||||||||
License fees
|
$
|
8,130
|
$
|
16,686
|
$
|
29,891
|
$
|
40,917
|
||||||||
Subscription fees
|
10,583
|
7,873
|
38,806
|
28,217
|
||||||||||||
Maintenance and other
|
32,351
|
34,070
|
132,962
|
141,295
|
||||||||||||
Professional services
|
18,195
|
20,933
|
76,193
|
84,672
|
||||||||||||
Total revenue
|
69,259
|
79,562
|
277,852
|
295,101
|
||||||||||||
Cost of revenue:
|
||||||||||||||||
License
|
896
|
1,746
|
3,624
|
5,016
|
||||||||||||
Subscription
|
5,275
|
5,017
|
20,635
|
17,149
|
||||||||||||
Maintenance and other
|
7,365
|
8,167
|
30,973
|
32,511
|
||||||||||||
Professional services
|
17,295
|
18,979
|
71,330
|
76,954
|
||||||||||||
Total cost of revenue
|
30,831
|
33,909
|
126,562
|
131,630
|
||||||||||||
Gross profit
|
38,428
|
45,653
|
151,290
|
163,471
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Sales and marketing
|
16,877
|
19,466
|
66,535
|
69,785
|
||||||||||||
Research and development
|
9,797
|
10,066
|
41,237
|
42,315
|
||||||||||||
General and administrative
|
7,970
|
8,216
|
32,689
|
34,680
|
||||||||||||
Amortization of intangibles from acquisitions
|
163
|
171
|
658
|
706
|
||||||||||||
Total operating expenses
|
34,807
|
37,919
|
141,119
|
147,486
|
||||||||||||
Operating income
|
3,621
|
7,734
|
10,171
|
15,985
|
||||||||||||
Other (income) expense:
|
||||||||||||||||
Interest income
|
(96
|
)
|
(73
|
)
|
(320
|
)
|
(242
|
)
|
||||||||
Interest expense
|
168
|
213
|
712
|
811
|
||||||||||||
Other (income) expense, net
|
(286
|
)
|
(113
|
)
|
(757
|
)
|
(169
|
)
|
||||||||
Total other (income) expense, net
|
(214
|
)
|
27
|
(365
|
)
|
400
|
||||||||||
Income before income taxes
|
3,835
|
7,707
|
10,536
|
15,585
|
||||||||||||
Income tax (benefit) expense
|
(311
|
)
|
760
|
1,624
|
2,639
|
|||||||||||
Net income
|
$
|
4,146
|
$
|
6,947
|
$
|
8,912
|
$
|
12,946
|
||||||||
Diluted net income per share
|
||||||||||||||||
Class A
|
$
|
0.22
|
$
|
0.42
|
$
|
0.47
|
$
|
0.79
|
||||||||
Class B
|
$
|
0.18
|
$
|
0.36
|
$
|
0.40
|
$
|
0.68
|
||||||||
Diluted Weighted Shares
|
||||||||||||||||
Class A
|
16,272
|
13,790
|
16,224
|
13,553
|
||||||||||||
Class B
|
3,282
|
3,271
|
3,283
|
3,271
|
January 31,
2016
|
January 31,
2015
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and equivalents
|
$
|
137,731
|
$
|
120,526
|
||||
Accounts receivable, net
|
65,512
|
78,887
|
||||||
Deferred tax assets, net
|
8,203
|
9,313
|
||||||
Other current assets
|
16,024
|
14,799
|
||||||
Total current assets
|
227,470
|
223,525
|
||||||
Property and equipment, net
|
32,080
|
33,154
|
||||||
Capitalized software costs, net
|
1,553
|
2,485
|
||||||
Goodwill
|
10,645
|
10,911
|
||||||
Long-term deferred tax assets, net
|
11,085
|
7,676
|
||||||
Other assets, net
|
2,746
|
3,614
|
||||||
Total assets
|
$
|
285,579
|
$
|
281,365
|
||||
Liabilities and stockholders' equity
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$
|
422
|
$
|
406
|
||||
Accounts payable and other current liabilities
|
42,346
|
48,637
|
||||||
Deferred revenue
|
97,911
|
102,721
|
||||||
Total current liabilities
|
140,679
|
151,764
|
||||||
Long-term debt
|
14,258
|
14,680
|
||||||
Other liabilities
|
4,465
|
5,219
|
||||||
Stockholders' equity:
|
||||||||
Common stock
|
21
|
20
|
||||||
Additional paid-in capital
|
195,419
|
185,546
|
||||||
Treasury stock
|
(18,717
|
)
|
(22,977
|
)
|
||||
Accumulated deficit
|
(41,846
|
)
|
(45,469
|
)
|
||||
Accumulated other comprehensive loss
|
(8,700
|
)
|
(7,418
|
)
|
||||
Total stockholders' equity
|
126,177
|
109,702
|
||||||
Total liabilities and stockholders' equity
|
$
|
285,579
|
$
|
281,365
|
Twelve Months Ended
January 31,
|
||||||||
2016
|
2015
|
|||||||
Net cash provided by operating activities
|
$
|
23,652
|
$
|
23,697
|
||||
Cash flows from investing activities:
|
||||||||
Purchase of property and equipment
|
(3,195
|
)
|
(4,568
|
)
|
||||
Capitalized software costs
|
(153
|
)
|
(311
|
)
|
||||
Net cash used in investing activities
|
(3,348
|
)
|
(4,879
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Repayments of debt
|
(406
|
)
|
(388
|
)
|
||||
Tax payments, net of proceeds, related to stock awards
|
(2,461
|
)
|
(2,557
|
)
|
||||
Excess tax benefits from share-based payment arrangements
|
663
|
266
|
||||||
Payment of contingent liability associated with acquisitions
|
(750
|
)
|
(471
|
)
|
||||
Cash dividends paid
|
(5,235
|
)
|
(4,452
|
)
|
||||
Proceeds from issuance of common stock, net of issuance costs
|
8,365
|
37,046
|
||||||
Net cash provided by financing activities
|
176
|
29,444
|
||||||
Effect of exchange rates on cash and equivalents
|
(3,275
|
)
|
(3,720
|
)
|
||||
Net increase in cash and equivalents
|
17,205
|
44,542
|
||||||
Cash and equivalents at beginning of period
|
120,526
|
75,984
|
||||||
Cash and equivalents at end of period
|
$
|
137,731
|
$
|
120,526
|
Three Months Ended
January 31,
|
Twelve Months Ended
January 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Total revenue
|
$
|
69,259
|
$
|
79,562
|
$
|
277,852
|
$
|
295,101
|
||||||||
Net income
|
4,146
|
6,947
|
8,912
|
12,946
|
||||||||||||
Add back:
|
||||||||||||||||
Net interest expense
|
72
|
140
|
392
|
569
|
||||||||||||
Depreciation
|
1,015
|
1,007
|
3,968
|
3,816
|
||||||||||||
Amortization
|
444
|
468
|
1,807
|
1,935
|
||||||||||||
Income taxes
|
(311
|
)
|
760
|
1,624
|
2,639
|
|||||||||||
EBITDA
|
$
|
5,366
|
$
|
9,322
|
$
|
16,703
|
$
|
21,905
|
||||||||
Add back:
|
||||||||||||||||
Non-cash stock-based compensation
|
1,822
|
1,199
|
7,440
|
4,993
|
||||||||||||
Change in fair value of interest rate swap
|
212
|
556
|
48
|
877
|
||||||||||||
Adjusted EBITDA
|
$
|
7,400
|
$
|
11,077
|
$
|
24,191
|
$
|
27,775
|
||||||||
Adjusted EBITDA margin
|
11
|
%
|
14
|
%
|
9
|
%
|
9
|
%
|
||||||||
Non-GAAP net income reconciliation
|
||||||||||||||||
Net income
|
$
|
4,146
|
$
|
6,947
|
$
|
8,912
|
$
|
12,946
|
||||||||
Add back:
|
||||||||||||||||
Non-cash stock-based compensation
|
1,822
|
1,199
|
7,440
|
4,993
|
||||||||||||
Amortization of purchased intangible assets
|
343
|
363
|
1,377
|
1,493
|
||||||||||||
Change in fair value of interest rate swap
|
212
|
556
|
48
|
877
|
||||||||||||
Income tax adjustments
|
(594
|
)
|
(530
|
)
|
(2,216
|
)
|
(1,841
|
)
|
||||||||
Non-GAAP net income
|
$
|
5,929
|
$
|
8,535
|
$
|
15,561
|
$
|
18,468
|
||||||||
Non-GAAP earnings per diluted Class A share reconciliation
|
||||||||||||||||
Earnings per diluted Class A share
|
$
|
0.22
|
$
|
0.42
|
$
|
0.47
|
$
|
0.79
|
||||||||
Add back:
|
||||||||||||||||
Non-cash stock-based compensation
|
0.09
|
0.07
|
0.39
|
0.31
|
||||||||||||
Amortization of purchased intangible assets
|
0.02
|
0.02
|
0.07
|
0.09
|
||||||||||||
Change in fair value of interest rate swap
|
0.01
|
0.03
|
0.00
|
0.05
|
||||||||||||
Income tax adjustments
|
(0.03
|
)
|
(0.03
|
)
|
(0.11
|
)
|
(0.11
|
)
|
||||||||
Non-GAAP earnings per diluted Class A share
|
$
|
0.31
|
$
|
0.51
|
$
|
0.82
|
$
|
1.13
|
||||||||
Shares used in computing earnings per diluted Class A share
|
16,272
|
13,790
|
16,224
|
13,553
|
||||||||||||
Non-GAAP earnings per diluted Class B share reconciliation
|
||||||||||||||||
Earnings per diluted Class B share
|
$
|
0.18
|
$
|
0.36
|
$
|
0.40
|
$
|
0.68
|
||||||||
Add back:
|
||||||||||||||||
Non-cash stock-based compensation
|
0.08
|
0.07
|
0.33
|
0.26
|
||||||||||||
Amortization of purchased intangible assets
|
0.02
|
0.02
|
0.06
|
0.08
|
||||||||||||
Change in fair value of interest rate swap
|
0.01
|
0.03
|
0.00
|
0.04
|
||||||||||||
Income tax adjustments
|
(0.03
|
)
|
(0.03
|
)
|
(0.10
|
)
|
(0.10
|
)
|
||||||||
Non-GAAP earnings per diluted Class B share
|
$
|
0.26
|
$
|
0.45
|
$
|
0.69
|
$
|
0.96
|
||||||||
Shares used in computing earnings per diluted Class B share
|
3,282
|
3,271
|
3,283
|
3,271
|
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