QAD Inc (QADA) saw its loss narrow to $2.57 million, or $0.12 a share for the quarter ended Apr. 30, 2017. In the previous year period, the company reported a loss of $2.79 million, or $0.13 a share. Revenue during the quarter grew 9.15 percent to $71.38 million from $65.40 million in the previous year period. Gross margin for the quarter expanded 30 basis points over the previous year period to 51.16 percent. Operating margin for the quarter stood at negative 1.90 percent as compared to a negative 4.58 percent for the previous year period.
Operating loss for the quarter was $1.36 million, compared with an operating loss of $2.99 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.31 million compared to negative $0.75 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 1.84 percent for the quarter compared to negative 1.15 percent in the last year period.
“We were pleased to see strong bookings performance in our cloud business, combined with continued improvements to our subscription gross margin. Our services business continues to increase as demand for upgrades and cloud implementations remains strong,” said Karl Lopker, chief executive officer. “The environment for global manufacturing remains positive and we are well positioned for ongoing success.”
For the second-quarter, Qad forecasts revenue to be in the range of $71 million to $73 million. Qad forecasts revenue to be in the range of $288 million to $292 million for fiscal year 2018.
Operating cash flow improves significantly
QAD Inc has generated cash of $7.88 million from operating activities during the quarter, up 480.84 percent or $6.52 million, when compared with the last year period. The company has spent $0.80 million cash to meet investing activities during the quarter as against cash outgo of $1.09 million in the last year period.
The company has spent $0.30 million cash to carry out financing activities during the quarter as against cash outgo of $0.48 million in the last year period.
Cash and cash equivalents stood at $153.35 million as on Apr. 30, 2017, up 9.63 percent or $13.47 million from $139.88 million on Apr. 30, 2016.
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