Thursday, March 12, 2009
QAD Chops Staff As Revenues Drop
Santa Barbara-based QAD, a maker of manufacturing resource planning software, said Thursday that it has cut its staff, as the firm was "significantly affected this quarter by the impact of the global economic downturn." The firm, which disclosed the cuts in its earnings release, said that the workforce reduction is expected to save the firm approximately $14M annually. Number of employees affected by the move, and timing of the cuts, was not disclosed. The firm reported that it had $59.3M in revenues in Q4, down from $75.3M in the similar quarter a year ago. The firm lost $17.4M, including a $14.4M impairment charge on its EMEA business, and $3.3M in severance related to the job cuts. The cuts and results follow a warning by the firm in early February that it was seeing problems related to the "significant challenges" in the economy.