Excluding a $3.2 million valuation allowance on US deferred tax assets, the net loss for the second quarter of fiscal year 2001 was $5.7 million, or $0.17 per diluted share.
For the first six months of fiscal year 2002, the company reported revenue of $100.9 million and a net loss of $4.0 million, or $.12 per diluted share, compared with revenue of $104.8 million and a net loss of $17.6 million, or $.53 per diluted share, for the first six months of fiscal year 2001. Excluding the valuation allowance on US deferred tax assets, the net loss for the first six months of fiscal year 2001 was $14.4 million, or $0.43 per diluted share.
Gross margin was 56% for both the three and six months ended July 31, 2001 compared to 54% and 52% in the comparable prior year periods, respectively. This improvement was primarily due to a more favorable mix of revenue from internally developed product, thereby reducing royalties payable to third parties. In addition, the company’s continued cost containment programs contributed significantly to the year-over-year improvement in bottom line performance, with operating expenses for the second quarter and year-to-date periods coming in 10% and 12% lower than year-ago levels, respectively.
In such a challenging economic environment, we were pleased to produce vastly improved bottom line results compared with one year ago, and to generate nearly $10 million in cash flow from operations, said Karl Lopker, chief executive officer of QAD. Our top line revenue growth continues to be affected by the worldwide slowdown in corporate IT spendingespecially in our core customer base of manufacturers but we believe that QAD’s collaborative manufacturing solutions put us in an excellent position to resume growth when the manufacturing economy recovers. In the meantime, we will continue to carefully manage our cost structure in line with current conditions.
SOURCE: COMPANY PRESS RELEASE
