QAD Inc. (NASDAQ: QADA) (NASDAQ: QADB), a leading provider of enterprise business software and services for global manufacturers, today reported financial results for the fiscal 2014 third quarter ended October 31, 2013.
Total revenue grew to $65.7 million for the fiscal 2014 third quarter, up from $61.7 million for the same quarter last year. License revenue was $6.8 million for the third quarter of fiscal 2014, down from $7.0 million for the third quarter of fiscal 2013. Maintenance and other revenue rose to $35.6 million, up from $34.8 million for last year’s third quarter. Subscription revenue, which includes QAD’s On Demand deployment option, grew to $5.1 million, up from $3.8 million for last year’s third fiscal quarter. Professional services revenue equaled $18.2 million, an increase from $16.1 million for the third quarter of fiscal 2013. Revenue related to CEBOS, which was acquired by QAD in December 2012, totaled $700,000 for the fiscal 2014 third quarter.
Net income for the fiscal 2014 third quarter was $2.0 million, or $0.13 per diluted Class A share and $0.11 per diluted Class B share. Net income for the fiscal 2013 third quarter totaled $1.8 million, or $0.12 per diluted Class A share and $0.10 per diluted Class B share.
“We achieved better than expected revenue and earnings in our third quarter. Strong year-to-date bookings of our On Demand offering are reflected in the growth of our subscription revenue,” said Karl Lopker, Chief Executive Officer of QAD Inc. “Stabilizing market conditions in global manufacturing, and our competitive position in the cloud ERP space for manufacturing companies, contributed to our performance.”Gross profit for the fiscal 2014 third quarter totaled $36.8 million, or 56 percent of total revenue, compared with $35.2 million, or 57 percent of total revenue, for the fiscal 2013 third quarter.