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QAD On Demand Delivers the Benefits of Cloud ERP to Global Automotive Parts Manufacturers

QAD On Demand Automotive Edition with Embedded Automotive Process Maps Enables Suppliers to Focus on Meeting their Goals for Quality, Cost and Delivery

SANTA BARBARA, Calif. — October 16, 2013 — QAD Inc. (NASDAQ:QADA) (NASDAQ:QADB), a leading provider of enterprise software and services, announced QAD On Demand Automotive Edition delivers the benefits of its cloud enterprise resource planning (ERP) solution to global automotive suppliers. QAD On Demand Automotive Edition is designed exclusively for automotive manufacturers to meet their goals for quality, cost and delivery.

QAD On Demand is Full-Strength Cloud ERP Built for Global Auto Suppliers

New automotive customers and existing customers alike are investigating QAD’s proven cloud ERP solution for its predictable cost structure, global capabilities and flexible deployment. QAD On Demand offers the same functionality, business processes and user experience of the on-premise model of QAD Enterprise Applications while offering the benefits of QAD cloud ERP. QAD On Demand reduces customer costs of managing computers, databases or other infrastructure related to their ERP solution. Using QAD cloud ERP, customers enjoy enhanced system performance and monitoring, reliability, security, planned upgrades and business continuity with on demand access around the world.

QAD global capabilities with built-in support for local languages, currencies, business practices and legal requirements allow automotive manufacturers to efficiently align their global operations to strategic goals and perform at their best.

The scalability of the QAD cloud ERP solution allows automotive suppliers and sub suppliers with as few as ten users and as many as thousands to use the same application. “In today’s global environment of acquisitions, mergers and joint ventures, QAD On Demand is an effective solution for automotive customers to bring new sites or divisions on board quickly and affordably,” said Charlie Eggerding, vice president of QAD On Demand. “Whether our customers are moving from an existing QAD system or from another ERP application, we have proven methodologies for simplifying the process.”

QAD has streamlined processes for converting data effectively and efficiently, and has developed a simple process for configuring business processes and bringing users on board quickly and efficiently. QAD’s implementation methodology, Easy On Boarding, simplifies the implementation process by pre-populating most standard data and pre-configuring standard processes.

QAD also offers flexible deployment options that allow customers to blend deployment of their ERP in the public cloud and on premise. QAD’s architecture supports deployment portability and deployment independence allowing manufacturers to have a combination of QAD On Premise and QAD On Demand at different sites, simultaneously. Customers benefit from the same functionality, business processes, internationalizations and user experience across the QAD solution regardless of the deployment model.

QAD On Demand Automotive Edition Provides Process Maps

Global auto manufacturers gain unique capabilities with QAD On Demand Automotive Edition, including specific process maps based on automotive industry best practices and embedded support for Materials Management Operations Guideline/ Logistics Evaluation (MMOG/LE). MMOG/LE, now used by leading OEMs for supplier certification, was first introduced in 2002 by automotive industry leadership associations AIAG and its European counterpart Odette, and guides suppliers in assessing, improving, and benchmarking materials management and logistics processes. Global automotive original equipment manufacturers (OEMs) and suppliers that embrace the implementation of MMOG/LE have improved delivery performance and reduced costs from errors, waste and workload for both suppliers and customers.

“Global automotive manufacturers want the flexibility to scale operations to meet their customers’ stringent requirements,” said Terry Onica, director of Automotive at QAD. “QAD On Demand Automotive Edition enables suppliers to move quickly while achieving their goals for quality, cost and delivery. QAD helps customers achieve 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 – The Effective Enterprise

QAD Inc. (NASDAQ: QADA) (NASDAQ: QADB), is a leading provider of enterprise software and services designed for global manufacturing companies. For more than 30 years, QAD has provided global manufacturing companies with an enterprise resource planning (ERP) system that supports operational requirements; including financials, manufacturing, demand and supply chain planning, customer management, business intelligence and business process management. QAD offers flexible deployment options like QAD On Premise software and QAD On Demand software-as-a-service. Customers can operate in a blended environment where some users can be deployed On Premise and some users deployed via On Demand while offering the same end-user experience. With QAD, customers and partners in the automotive, consumer products, food and beverage, high technology, industrial products and life sciences industries can better align daily operations with their strategic goals to meet their vision of becoming more Effective Enterprises.

For more information about QAD, telephone +1 805-566-6000, visit 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.