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Aeroflex to Deploy QAD Enterprise Applications

Innovative Test and Measurement Equipment Manufacturer Selects QAD Enterprise Applications to Increase Manufacturing Efficiency

SANTA BARBARA, Calif.—December 14, 2011—QAD Inc. (NASDAQ: QADA) (NASDAQ: QADB), a leading provider of enterprise software and services for global manufacturing companies, announced today that Aeroflex Limited, a wholly owned subsidiary of Aeroflex Holding Corp. (“Aeroflex”), will upgrade to QAD Enterprise Applications 2011 (QAD 2011) to increase manufacturing efficiency at its Stevenage, United Kingdom plant.

Aeroflex provides test and measurement instrumentation to meet the needs of global blue-chip brands across a wide range of industries, including wireless mobile and broadband communications, aerospace and defense.

Since first deploying QAD’s ERP solution in 1998, Aeroflex has consolidated three manufacturing operations into one. Aeroflex has chosen to upgrade to standardize on the latest release of QAD Enterprise Applications. It plans to leverage the built-in best practice business processes of QAD 2011 and reduce its reliance on non-integrated, bolt-on applications.

“We’re looking to significantly improve our Sales & Operations Planning (S&OP) processes and redefine the way we do business,” explained Theo Waarbenburg, implementation project manager for Aeroflex. “This upgrade will allow us to create a more efficient system.”

The upgrade to QAD 2011 will provide Aeroflex a fully integrated solution to improve its supply chain visibility, forecasting and inventory control. “One of the biggest costs to our business is in the manufactured element of our product,” said Derek Smith, finance director for Aeroflex Limited. “The (QAD 2011) Enterprise Edition will help us build a better forecast and enhance visibility into our supply chain, lowering our manufacturing costs and reducing our inventory.”

Additionally, as part of its improvement efforts, Aeroflex also is using QAD Configurator to standardize and simplify its configure-to-order process. QAD Configurator supports configurations from quoting and order entry through to production planning and fulfillment and after-sales service and support. This will enable Aeroflex to improve its delivery times and customer satisfaction.

“It was critical that we selected a solution that would support our proposed growth plans,” said Smith. “QAD Enterprise Applications will provide us the flexibility we need to rapidly respond and adapt to customer requirements and market changes, and deliver a framework to support a standard set of business processes across all areas of the company.”

To learn more about QAD Enterprise Applications, visit: www.qad.com/upgrade.

About Aeroflex

Aeroflex Holding Corp. is a leading global provider of microelectronic components and test and measurement equipment used by companies in the space, avionics, defense, commercial wireless communications, medical and other markets.

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 applications 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.

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 curren 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 prop tion 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 2011 ended January 31, 2011, and in particular, the section entitled “Risk Factors” therein, and in other periodic reports the company files with the Securities and Exchange Commission.

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