QAD Inc. (QADA) swung to a net loss for the quarter ended Jan. 31, 2017. The company has made a net loss of $15.16 million in the quarter, against a net profit of $4.15 million in the last year period. On an adjusted basis, net profit for the quarter was $2.97 million, when compared with $8.49 million in the last year period.
Revenue during the quarter grew 5.78 percent to $73.26 million from $69.26 million in the previous year period. Gross margin for the quarter contracted 33 basis points over the previous year period to 55.16 percent. Total expenses were 94.35 percent of quarterly revenues, down from 94.77 percent for the same period last year. This has led to an improvement of 42 basis points in operating margin to 5.65 percent.
Operating income for the quarter was $4.14 million, compared with $3.62 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $7.46 million compared with $7.40 million in the prior year period. At the same time, adjusted EBITDA margin contracted 51 basis points in the quarter to 10.18 percent from 10.68 percent in the last year period.
"We finished the year with strong performance from our cloud business, delivering 40% growth and continued margin improvement," said Karl Lopker, chief executive officer. "We entered the new financial year with good momentum and in a healthy environment for the global manufacturing market."
For fiscal year 2018, QAD Inc. forecasts revenue to be in the range of $288 million to $292 million.
Operating cash flow declines
QAD Inc. has generated cash of $18.68 million from operating activities during the year, down 22.35 percent or $5.38 million, when compared with the last year.
The company has spent $3.41 million cash to meet investing activities during the year as against cash outgo of $3.35 million in the last year.
The company has spent $7.81 million cash to carry out financing activities during the year as against cash outgo of $0.49 million in the last year period.
Cash and cash equivalents stood at $145.08 million as on Jan. 31, 2017, up 5.34 percent or $7.35 million from $137.73 million on Jan. 31, 2016.
Working capital declines
QAD Inc. has witnessed a decline in the working capital over the last year. It stood at $80.35 million as at Jan. 31, 2017, down 7.42 percent or $6.44 million from $86.79 million on Jan. 31, 2016. Current ratio was at 1.54 as on Jan. 31, 2017, down from 1.62 on Jan. 31, 2016.
Debt comes down marginally
QAD Inc. has recorded a decline in total debt over the last one year. It stood at $14.21 million as on Jan. 31, 2017, down 2.74 percent or $0.40 million from $14.61 million on Jan. 31, 2016. Total debt was 5.06 percent of total assets as on Jan. 31, 2017, compared with 5.10 percent on Jan. 31, 2016. Debt to equity ratio was at 0.13 as on Jan. 31, 2017, up from 0.12 as on Jan. 31, 2016. Interest coverage ratio improved to 24.77 for the quarter from 21.55 for the same period last year.
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