QAD Inc. (QADB) Reports Q4 EPS of $0.16, Revenues Beat

QAD Inc. (NASDAQ: QADB) reported Q4 EPS of $0.16, versus $0.01 reported last year. Revenue for the quarter came in at $76.66 million versus the consensus estimate of $73.69 million.

Fiscal 2021 Third Quarter Financial Results:

Total revenue for the fiscal 2021 third quarter was $76.7 million, compared with $77.8 million for the fiscal 2020 third quarter, reflecting expected reductions in license, professional services and maintenance revenue, partially offset by an increase in subscription revenue. Currency had a $709,000 positive impact on total revenue compared with last year’s third quarter. Fiscal 2021 third quarter subscription revenue grew 24 percent from the same period last year, and accounted for 44 percent of total revenue, a nine-percentage point increase over last year’s third quarter.

Additional fiscal 2021 third quarter financial results, compared with the same period last year, include:

• Subscription revenue of $33.8 million, up from $27.3 million. Currency had a $224,000 positive impact.
• Subscription gross margin of 68 percent, versus 65 percent.
• License revenue of $1.7 million, compared with $3.3 million. Currency had a $63,000 positive impact.
• Professional services revenue of $14.2 million, compared with $17.5 million. Currency had a $96,000 positive impact.
• Professional services gross margin improved to 7 percent from 6 percent.
• Maintenance revenue of $27 million, compared with $29.7 million. Currency had a $326,000 positive impact.
• GAAP pre-tax income of $3.8 million versus $1.5 million. Subscription growth and higher margins continued to drive bottom-line improvements.
• Non-GAAP pre-tax income of $7.6 million, compared with $4.6 million.
• GAAP net income of $3.2 million, or $0.16 per diluted Class A and $0.13 per diluted Class B share, versus $125,000, or $0.01 per diluted Class A and Class B share.

“We made significant progress toward our long-term goals this quarter and delivered a strong set of results. Our investment in sales and marketing continues to pay off well and we are seeing sustained improvement in our bottom-line performance,” said Anton Chilton, QAD’s Chief Executive Officer. “Our ability to provide global manufacturers with next generation ERP and best-in-class cloud deployments are helping us outperform the competition.”

For earnings history and earnings-related data on QAD Inc. (QADB) click here.

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