QAD Inc. F4Q09 (Qtr End 1/31/09) Earnings Call Transcript

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2009-03-12 16:54:10.0

Tags: On-demand, Call Transcript, Earnings, Managed Hosting, Sales Strategy, Cloud Computing, Sales, Seeking Alpha, QAD

Question-and-Answer Session

Operator

Certainly. (Operator Instructions) Your first question comes from Mark Schappel - The Benchmark Company.

Mark Schappel - The Benchmark Company

Karl, in the past you’ve stated that on-demand revenue is becoming or you’re seeing it become a larger part of your sales funnel and I guess my first question is was there any meaningful on-demand revenue in the quarter?

Pamela M. Lopker

Can I?

Karl F. Lopker

Yes, go ahead Pam.

Pamela M. Lopker

Last quarter I think we got four new sales of on-demand and we are definitely seeing that funnel increasing, not just from new business but from existing customers. Actually one of the deals was from an existing customer in the home building area that decided to go to on-demand instead of on premise because of their need to reduce operating costs quite a bit. And we actually are seeing many deals in our on-demand funnel now and I think it’s this economic time is giving them the impetus to change from their internal premise to on-demand application.

Mark Schappel - The Benchmark Company

The on-demand deals that you did receive, were they for those supply chain visualization product or were they for the core manufacturing –

Pamela M. Lopker

I’m sorry. All four of those were for the core [subtle] ERP. We also did have supply visualization sales as well, but I don’t know those numbers off the top of my head. But you’re asking for total ERP so that’s what I –

Mark Schappel - The Benchmark Company

Okay. Thank you. And Karl if I heard you correctly during your prepared remarks, it was either you or Daniel mentioned that automotive was about a third of total sales in the quarter, and this would be a normal percent – if this is so, this would be a normal percentage for the sector. That would appear that the downturn you saw was pretty broad-based across all your sectors. Is that a – am I capturing this correctly?

Karl F. Lopker

[Inaudible] no, usually automotive is about a third of our total revenue, you know, year-in and year-out [inaudible] it had been increasing. No, in the fourth quarter it was down quite a bit relative to the other verticals. Life sciences was up relative to the other verticals. And no, but automotive definitely was down in the fourth quarter.

Mark Schappel - The Benchmark Company

Do you have the percentage of sales handy?

 

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