Karl Lopker, CEO, QAD

QAD Inc. specializes in providing a wide range of business software that manufacturers use to run their operations and connect with trading partners. And it’s getting a big boost from its clients’ demand for cloud-based systems.

“We finished the year with strong performance from our cloud business, delivering 40% growth and continued margin improvement,” CEO Karl Lopker said Thursday in commenting on QAD’s financial results for the fiscal fourth quarter and year ended Jan. 31. “We entered the new financial year with good momentum and in a healthy environment for the global manufacturing market.”

QAD’s products range from enterprise resource planning, or ERP, systems that manufacturers use to manage things like financial records, inventory levels and human resources; supply chain management; and a supplier portal for processing customers’ orders.

In the fourth quarter, QAD’s cloud subscription revenue increased 38.7% to $14.7 million from $10.6 million a year earlier, bringing full-year subscription revenue to $52.2 million, up 34.5% from $38.8 million.

Although cloud revenue accounted for only 20% of total revenue in the fourth quarter, it represented the company’s strongest growth segment.

Total revenue for the quarter increased 5.8% to $73.26 million from $69.26 million a year earlier, as fees from on-premise licensed software increased 10% to $8.9 million and fees declined for software maintenance and professional services.

QAD said it received in the quarter license or cloud orders from companies including Adient Limited, DS Smith Plc, Epic Pharma Inc., Gorton’s Seafood, Invacare Corp., Inventus Power, Israel Chemicals Limited, Rondo Food GmbH, Thermo Fisher Scientific, TVH Group NV, VIP Bidco Pty Ltd and Yanfeng Automotive Interiors. QAD serves manufacturers across six markets: automotive, consumer products, food and beverage, high tech, industrial and life sciences.

For the full fiscal year ended Jan. 31,  total revenue inched up by only a fraction of a percentage point, to $280.0 million from $277.9 million, as revenue declined from license fees, software maintenance and professional services.

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