BlueStone Capital Announces Investment Opinion on QAD, Inc.NEW YORK--(BUSINESS WIRE)--March 15, 1999-- BlueStone bluestone, common name for the blue, crystalline heptahydrate of cupric sulfate called chalcanthite, a minor ore of copper. It also refers to a fine-grained, light to dark colored blue-gray sandstone. Capital Initiates Coverage of QAD QAD Quality Assurance Division QAD Quality Assurance Department QAD Quick And Dirty QAD Quality Audit Division QAD Quick Attach/Detach QAD Question Answer Detail (language arts education) QAD Quality Application Development , Inc. with a Buy Recommendation Senior Analyst, Steven Jaworski at BlueStone Capital Partners, L.P. initiates coverage of QAD, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :QADI-$3 1/8) with a BUY recommendation and a 12 to 18 month price target of $7 to $8.50 per share. QAD is a provider of Enterprise Resource Planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. (ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ) software for multinational companies, focusing on mid-tier manufacturing companies. Its principal product MFG/PRO software is designed specifically to address the plant-level needs of multinational manufacturers in five industries: electronics/industrial, food/beverage, consumer packaged goods, medical and automotive. Analyst Summary: -- The company reported a net loss of $4.9 million or $0.16 per share in Q4FY99. These results include approximately $4.5 million in non-operating expenses. Excluding these non-recurring charges and assuming a normalized tax rate, the company would have reported net income of $124,000. We forecasted a loss of $0.04 with the consensus estimate being a loss of $0.11. -- Twelve deals of greater than $1 million were closed during the quarter. Two Advanced Planning and Schedule (APS) licenses (average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. of over $1 million) were sold during the period. To date this quarter, QAD has sold one APS module with several potential deals in the pipeline. -- QAD will launch MFG/PRO version 9.0 later this month. 9.0 is web enabled and will include customer relationship applications. -- We continue to view QAD as an early stage turn around situation and view Q4FY99 as a positive step in that direction. Restructuring steps taken in the past two quarters should reduce costs close to $20 million per annum Per annum Yearly. allowing for nice upside leverage when the ERP market strengthens. We have fine tuned our FY2000 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. estimate to $0.18 from $0.22. BlueStone Capital Partners, L.P. is a full service investment banking and brokerage firm that delivers financial services to emerging growth and medium size companies worldwide. BlueStone Capital assists clients in maximizing their growth by providing sophisticated investment strategies that are designed to achieve clients' strategic, operating and financial goals. |
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