QAD Reports Flat 2Q Loss, Sees Small 3Q Profit

SANTA BARBARA, Calif. (AP) — Business software provider QAD Inc. said Tuesday its fiscal second-quarter loss was virtually unchanged from the year before as cost-cutting efforts offset a sharp drop in revenue.

The company posted a loss of $1.4 million, or 5 cents per share, in the quarter, equaling its loss in the year-ago period.

Quarterly revenue tumbled 26 percent to $51.3 million from $69.5 million due mostly to a steep drop in services revenue. But total operating expenses also declined to $31.2 million from $40 million a year earlier.

"Our financial results this quarter benefited from the expense control programs we implemented earlier in the year, strong cash management and reduced capital expenditures, significantly improving cash flow and our balance sheet," said Karl Lopker, CEO of QAD, in a statement.

The company said some of its customers' businesses are stabilizing and predicts it will post profit in the second half of the year. It forecast third-quarter revenue of $54 million and a small profit.

Shares of the company fell 20 cents, or 4.5 percent, to end at $4.22 on Tuesday.