Revenue was $68.5 million, up from just under $62 million in last year's corresponding period. Subscription revenue, from the sale of QAD Enterprise Cloud, reached $6.2 million, compared to just over $4 million a year earlier. CEO Karl Lopker said the cloud is producing an increasing number of prospects. During the quarter, about one third of all sales opportunities were cloud deals, up from 25 percent a year earlier. He noted a majority of the cloud business involves conversion of current on-premise customers. QAD plans to grow subscription revenue at a rate of 40 percent to 50 percent. If we follow the NetSuite example, the profitability picture is better on a non-GAAP basis. The first quarter results included $876,000 in stock compensation expense, compared to $1.7 million a year earlier.
SUBSCRIPTIONS RAISE QAD REVS Featured
QAD, which makes manufacturing software, is in the same boat as everyone else. Or should we say on the same cloud as a 53-percent increase in subscription revenue from cloud software sales helped the company to an 11-percent revenue increase for the first quarter ended April 30. The Santa Barbara, Calif.-based company also sliced its loss to $76,000, compared to a year-earlier loss of $1.3 million and posted operating income of $298,000 in the most recently ended period, as opposed to an operating loss of $1.7 million a year ago.
