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Manufacturers Harness Full-Strength Cloud ERP with QAD On Demand

QAD Customers Embrace Cloud ERP from QAD for its Simplicity, Flexibility and Predictable Cost Structure

SANTA BARBARA, Calif. — July 16, 2013 — QAD Inc. (NASDAQ:QADA) (NASDAQ:QADB), a leading provider of enterprise software and services for global manufacturers, today announced QAD customers in a variety of industry verticals are adopting the QAD cloud enterprise resource planning (ERP) offering of QAD Enterprise Applications. QAD On Demand is a full-strength cloud ERP solution that can be deployed around the world.

QAD cloud ERP is not only attractive to new manufacturing customers for its predictable low cost model, simplicity and capabilities for flexible implementation,” said Pam Lopker, founder and president of QAD. “Existing QAD customers are also moving to QAD cloud solution to address their strategic imperatives. We are seeing they prefer to standardize their ERP with QAD On Demand as they acquire new divisions or tap opportunities to rapidly scale operations in growth markets.”

Analysts Report on Cloud ERP Trends

Research from industry analysts, covering ERP customer adoption requirements and preferences, show a solid growth trajectory for cloud ERP solutions. Cindy Jutras, a widely recognized expert in analyzing the impact of enterprise applications on business performance recently conducted a survey to investigate goals and challenges, preferences and the status of ERP in manufacturing organizations. Jutras reports that cloud ERP and SaaS-based applications are 22% of all business applications installed in manufacturing and distribution companies today, and predicts that percentage will grow to 45% within ten years.

Principal analyst at Technology Evaluation Centers (TEC), P.J. Jakovljevic said, “In the life sciences and automotive supplier sectors, there can be many smaller or startup companies that need to comply with many industry regulations (e.g. MMOG/LE in automotive or FDA in life sciences) and they go for the QAD On Demand in a single instance/single-tenant private cloud set up.”1

The scalability of QAD On Demand allows companies with as few as ten users and as many as thousands to use the same application. QAD helps level the playing field for fast-growing companies to operate on par with global organizations.

Reinfro Corp., a rapidly growing manufacturer of metal finishing, surface treatments and coatings solutions needed to standardize their ERP and gain greater visibility into their business processes. They chose QAD On Demand to support their goals of operating at peak performance while aligning to strategic goals. “Reinfro is in the business of manufacturing, not IT, so that’s why we let the experts at QAD handle our ERP On Demand deployment,” said Raul Gonzalez, vice president at Reinfro. “QAD On Demand delivered the functionality we needed -- the repetitive mode of manufacturing was the right fit for our operations. And QAD has the powerful capabilities we can grow into and can adapt as our business accelerates and expands.”

QAD Enterprise Applications cloud ERP is available in 13 core languages. QAD delivers On Demand in three standard editions including:

  • QAD On Demand General Edition -- all the full-featured capabilities of QAD Enterprise Applications on premise
  • QAD On Demand Life Sciences Edition – all of the General Edition plus its certified by a Food and Drug Administration (FDA) auditor as an environment that complies with current good manufacturing rules (cGMP)
  • QAD On Demand Automotive Edition -- all of the General Edition plus a suite of process maps to support Materials Management Operational Guideline/Logistics Evaluation (MMOG/LE).

“QAD On Demand equips customers to meet the global pressures to make the most of every business interaction and process — to increase speed and efficiency from supplier to distributor,” added Lopker. “QAD is focused on providing the flexible ERP solutions that enable customers to move toward achieving their vision of becoming a more Effective Enterprise, in which every business process is working at peak efficiency and perfectly aligned with their strategic goals.”

For more information, please visit: www.qad.com.

About QAD

QAD is a leading provider of enterprise applications for global manufacturing companies specializing in automotive, consumer products, electronics, food and beverage, industrial and life sciences products. QAD ERP solutions provide critical functionality for managing manufacturing resources and operations within and beyond the enterprise, enabling global manufacturers to collaborate with their customers, suppliers and partners to make and deliver the right product, at the right cost and at the right time. For more information about QAD, telephone +1 805-566-6000, or visit the QAD web site at www.qad.com.

“QAD” is a registered trademark of QAD Inc. All other products or company names herein may be trademarks of their respective owners.

For additional information, contact:

Ashley DeVan
Sr. Director of Marketing Communications
QAD Inc.
+1 805 566 6126
ashley.devan@qad.com
Heidi Wieland
Media Relations
QAD Inc.
+1 805 565 2452
Heidi.wieland@qad.com

Note to Investors: This press release contains certain forward-looking statements made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Words such as “expects”, “believes”, “anticipates”, “could”, “will likely result”, “estimates”, “intends”, “may”, “projects”, “should”, and variations of these words and similar expressions are intended to identify these forward looking statements. Forward-looking statements are based on the company’s current expectations and assumptions regarding its business, the economy and future conditions. A number of risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements. These risks include, but are not limited to, evolving demand for the company's software products and products that operate with the company's products; the company's ability to sustain license and service demand; the company's ability to leverage changes in technology; the company's ability to sustain customer renewal rates at current levels; the publication of opinions by industry and financial analysts about the company, its products and technology; the reliability of estimates of transaction and integration costs and benefits; the entry of new competitors or new offerings by existing competitors and the associated announcement of new products and technological advances by them; delays in localizing the company's products for new or existing markets; the ability to recruit and retain key personnel; delays in sales as a result of lengthy sales cycles; changes in operating expenses, pricing, timing of new product releases, the method of product distribution or product mix; timely and effective integration of newly acquired businesses; general economic conditions; exchange rate fluctuations; and, the global political environment. In addition, revenue and earnings in the enterprise resource planning (ERP) software industry are subject to fluctuations. Software license revenue, in particular, is subject to variability with a significant proportion of revenue earned in the last month of each quarter. Given the high margins associated with license revenue, modest fluctuations can have a substantial impact on net income. Investors should not use any one quarter's results as a benchmark for future performance. For a more detailed description of the risk factors associated with the company and the industries in which it operates, please refer to the company's Annual Report on Form 10-K for fiscal 2013 ended January 31, 2013, and in particular, the section entitled “Risk Factors” therein, and in other periodic reports the company files with the Securities and Exchange Commission.