Read Larry Connors' blog – Short Term Trading Strategies
In a release, the company noted that total revenue increased two percent to $67.8 million for the third quarter of fiscal 2009 from $66.6 million for the third quarter of fiscal 2008. License revenue was $13.1 million compared with $14.1 million for the fiscal 2008 third quarter. Maintenance and other revenue was $32.7 million compared with $32.3 million for the third quarter of fiscal 2008. Services revenue was $22.0 million, compared with $20.2 million for last fiscal year's third quarter.
Net loss for the fiscal 2009 third quarter was $1.8 million, or $0.06 per share, including a $0.04 per share tax expense, incorporating changes related to the estimated level and mix of profitability by tax jurisdiction. In the prior year third quarter, QAD reported net income of $1.5 million, or $0.05 per diluted share.
"In the third quarter, we managed our business through a difficult economic climate," said Karl Lopker, chief executive officer of QAD. "We believe our focus on building closer relationships with our customers and helping them address the challenges their businesses are currently facing is critical. Combined with cost control measures, this focus will serve us well as we navigate through these times and position QAD for the future."
Gross margin for the fiscal 2009 third quarter was 54 percent, compared with 58 percent for the same period last year, attributable to changes in the company's overall revenue mix and higher services and support personnel costs.
Total operating expenses were $37.1 million, or 55 percent of total revenue, for the fiscal 2009 third quarter, compared with $35.3 million, or 53 percent of total revenue, for the same period last year. The increase in total operating expenses primarily reflects higher personnel costs and additional expense related to acquisitions.
Operating loss for the fiscal 2009 third quarter was approximately $500,000, including $1.3 million in stock compensation expense, compared with operating income of $3.2 million, including $1.5 million in stock compensation expense, for the third quarter of the prior year.
For the first nine months of fiscal 2009 ended October 31, revenue grew nine percent to $204.1 million, from $187.4 million for the prior nine month period. Operating loss for the fiscal 2009 nine-month period was $4.4 million, including $4.5 million in stock compensation expense, compared with operating income of approximately $900,000, including $4.5 million in stock compensation expense, for the comparable period last year. Net loss was $4.0 million, or $0.13 per share, compared with net income of approximately $200,000, or $0.01 per diluted share, for the first nine months of fiscal 2008.
Cash flow provided by operations was $2.5 million for the third quarter of fiscal 2009, versus $3.4 million for the third quarter of fiscal 2008. For the first nine months of fiscal 2009, cash flow provided by operations was $9.6 million, versus $11.5 million for the first nine months of the previous year.
QAD's cash and cash equivalents balance at October 31, was $36.2 million, compared with $45.6 million at January 31. The change in cash reflects $6.2 million of acquisition related payments and $4.5 million in dividend payments and stock repurchases in the first nine months of fiscal 2009.
Third Quarter Fiscal 2009 Highlights:
- QAD received orders from 24 customers representing more than $500,000 each in combined license, support and services billings, including five orders in excess of $1.0 million and one in excess of $2.0 million; - Received license orders from companies across QAD's six vertical markets including: AEP Industries, Archer Daniels Midland, Doosan Corp., Fortis Plastics, Furniture Brands International, Johnson Controls, Petrochemicals (Malaysia), Summit Auto Seats Industry, Stryker Corp., Superior Industries International, Synovis Life Technologies, TS Tech Company and W. Jordans (Cereal); - Aberdeen Group, an independent research company, found that "QAD's customers produced the highest average improvements for the lowest cost per user" among ERP software providers in a recent study titled, The Total Cost of ERP Ownership in Mid-Size Companies; - Jabil After-Market Services (AMS), a division of electronics solutions company Jabil Circuit, Inc., deployed the PRECISION Parcel Shipping solution to manage its global shipping requirements. The use of PRECISION Parcel Shipping by Jabil AMS is expected to save the company $1.8 million annually in shipment processing costs; - In November, QAD held its European regional customer conference, Explore EMEA in Sorrento, Italy. At the conference, the company debuted the latest release of QAD Enterprise Applications, aimed at delivering Total Enterprise Capabilities for its customers.
Business Outlook:
Given the current economic backdrop, QAD now expects revenue in the range of $274 million to $278 million for the full 2009 fiscal year. Stock compensation expense for fiscal 2009 is expected to be approximately $5.5 million. Earnings for fiscal 2009 are expected in the range of breakeven to a loss of approximately $0.10 per share, including approximately $0.02 to $0.04 per share in tax expense depending on the level and mix of profitability by tax jurisdiction.
((Comments on this story may be sent to newsdesk@closeupmedia.com))
((Distributed via M2 Communications Ltd - http://www.m2.com))
http://www.10meters.com
Comments on this story may be sent to newsdesk@closeupmedia.com
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
