NEW YORK (TheStreet) -- QAD Inc. (QADI) was among several stocks trading near $5 poised to move on above-average volume Tuesday after the enterprise software company disappointed with its view on the fiscal first quarter.
QAD offered preliminary financial results for the first quarter of 2011, saying it expects a loss of 4 cents to 5 cents on revenue of $50 million to $51 million, which is below the Thomson Reuters consensus estimate for a profit of 6 cents a share on revenue of $52.5 million. Previously, QAD had forecasted a quarterly profit of 3 cents a share on revenue of $54 million.
"Although we did not meet our revenue expectations during our first quarter, we are seeing increased activity at our manufacturing customers, although capacity utilization is still below pre-recession levels," CEO Karl Lopker said in a statement. "This is leading to a corresponding increase in our near term pipeline. As a result, we believe that our existing business model and plans are appropriate for the current environment."
QAD shares were falling by 47 cents, or 8.2%, to $5.24 in the premarket session. The 50-day average daily volume for QAD is 43,000, according to the Nasdaq.
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