Notable News Spotlight: QAD Inc. (NASDAQ:QADA)

QAD Inc. (NASDAQ:QADA) spotted trading -40.23% off 52-week high price. On the other end, the stock has been noted 1.23% away from the low price over the last 52-weeks. The stock changed -0.57% to recent value of $36.94. The stock transacted 151141 shares during most recent day however it has an average volume of 58.7K shares. The company has 18.64M of outstanding shares and 11.68M shares were floated in the market.

On Aug.21, 2019, QAD Inc. (NASDAQ:QADA) a leading provider of flexible, cloud-based enterprise software and services for global manufacturing companies, disclosed financial results for the fiscal 2020 second quarter and first six months ended July 31, 2019.

Fiscal 2020 Second Quarter Financial Highlights:

Total revenue for the fiscal 2020 second quarter was $76.4 million, compared with $84.5 million for the fiscal 2019 second quarter.  The revenue decline was primarily related to an $8.6 million reduction in professional services.  Currency had a negative $1.4 million impact on total revenue compared with the prior year quarter, and a negative $400,000 impact compared with the prior sequential quarter.  Subscription revenue grew 15 percent (17 percent on a constant currency basis) from the same period last year, and was 34 percent of total revenue for the fiscal 2020 second quarter, a seven-percentage point increase over last year’s second quarter.

Additional fiscal 2020 second quarter financial highlights, versus the same period last year, include:

  • Subscription revenue of $25.9 million, up from $22.4 million. Currency had a $277,000 negative impact.
  • Subscription gross margin of 62 percent, versus 63 percent.
  • License revenue of $3.5 million, compared with $5.6 million. Currency had a negligible impact.
  • Professional services revenue of $17.4 million, versus $26.0 million. Currency had a $513,000 negative impact.
  • Maintenance and other revenue of $29.6 million, compared with $30.6 million. Currency had a $529,000 negative impact.
  • GAAP pre-tax loss of $3.4 million, versus GAAP pre-tax income of $2.6 million.
  • Non-GAAP pre-tax income of $43,000, compared with $5.9 million.
  • Income tax expense of $9.9 million, versus income tax expense of $1.5 million. Current period income tax expense includes a non-cash accounting adjustment of $10 million attributed to the placement of a valuation allowance mainly relating to the company’s Ireland deferred tax assets. Recent losses generated in connection with the company’s continued transition to, and investment in, a cloud model, required a valuation allowance be placed on certain tax assets for accounting purposes. As cloud revenue continues to grow, the company believes profitability will increase over the long-term and its deferred tax assets will ultimately be realized.
  • GAAP net loss of $13.3 million, or $(0.69) per Class A share and $(0.57) per Class B share, versus GAAP net income of $1.1 million, or $0.05 per diluted Class A and diluted Class B share.
  • Its earnings per share (EPS) expected to touch remained 215.40% for this year while earning per share for the next 5-years is expected to reach at 10.00%. QADA has a gross margin of 53.30% and an operating margin of 1.40% while its profit margin remained 1.80% for the last 12 months.

According to the most recent quarter its current ratio was 1.5 that represents company’s ability to meet its current financial obligations. The price moved ahead of -8.40% from the mean of 20 days, -10.19% from mean of 50 days SMA and performed -13.82% from mean of 200 days price. Company’s performance for the week was -0.94%, -14.39% for month and YTD performance remained -6.08%.

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