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QAD Allows Global Customers to Blend Deployment of ERP in the Public Cloud and On Premise – an Industry-First for Manufacturing

QAD Inc. (NASDAQ:QADA) (NASDAQ:QADB), a leading provider of enterprise software and services for global manufacturers, today announced QAD Enterprise Applications solution allows global customers to blend deployment of ERP in the public cloud and on premise – an industry-first for manufacturers.

Designed exclusively for global manufacturers, QAD innovative architecture enables enterprises to implement a full-strength ERP solution via the public cloud or as a blended deployment model containing a mix of both on premise licenses and cloud users. Customers benefit from the same functionality, business processes, internationalizations and user experience across QAD Enterprise Applications regardless of the deployment model.

“As companies continue to embrace cloud applications and cloud deployment strategies, the benefits of on demand ERP systems with strong security, high performance and a common user experience continue to emerge as competitive differentiators,” said Nick Castellina, senior research associate, Enterprise Applications, Aberdeen Group. “The capability to run ERP on premise at company headquarters, for example, with on demand ERP deployed in other locations, offers manufacturers a pragmatic approach.”

A Gradual Pragmatic Approach to Running ERP in the Cloud

Global manufacturing companies that choose to migrate to the cloud can rarely move existing implementations overnight. QAD blended deployment allows customers to gradually migrate ERP solutions to the cloud. “Deployment flexibility is essential,” said Gordon Fleming, QAD chief marketing officer. “Global manufacturing customers with existing QAD Enterprise Applications are interested in the benefits of the public cloud platform, but want to take a gradual, pragmatic approach to getting there.”

QAD Enterprise Applications On Demand provides the same functionality and user experience as QAD Enterprise Applications On Premise software. As software-as-a-service (SaaS), QAD On Demand benefits customers with automatic upgrades and rapid implementation, per-user pricing and global accessibility. IT departments globally are recognizing the benefits of having QAD manage application support, server hardware, systems administration, database administration, upgrade planning, first-line user support, disaster recovery, usage and analysis reporting.

QAD delivers both deployment independence and deployment portability. QAD On Demand, QAD On Premise and QAD blended deployment options deliver the functionality that global manufacturing companies require to become more effective enterprises.

The scalability of QAD Enterprise Applications allows companies with as few as five users and as many as thousands to use the same applications. QAD helps level the playing field for fast-growing companies to operate on par with global organizations.

Built to support best-in-class business processes — easily visible using QAD Process Maps — and changeable to match each company's unique processes, QAD Enterprise Applications offers built-in support for local languages, currencies, business practices and legal requirements.

“QAD realizes that no matter what deployment model a customer needs, it’s vital to deliver consistent functionality,” added Fleming. “One size does not fit all so QAD innovates to deliver the flexibility our manufacturing customers need to become more effective enterprises. Since 2007, we’ve delivered QAD Enterprise Applications to customers via the public cloud. Now, QAD customers can select the proven solutions and the flexible delivery model that works best for them today and easily scales for business in emerging and new markets in the future.”

For more information, please visit: www.qad.com.

About QAD

QAD is a leading provider of enterprise applications for global manufacturing companies specializing in automotive, consumer products, electronics, food and beverage, industrial and life sciences products. QAD ERP solutions provide critical functionality for managing manufacturing resources and operations within and beyond the enterprise, enabling global manufacturers to collaborate with their customers, suppliers and partners to make and deliver the right product, at the right cost and at the right time. For more information about QAD, telephone +1 805-566-6000, or visit the QAD web site at www.qad.com.

“QAD” is a registered trademark of QAD Inc. All other products or company names herein may be trademarks of their respective owners.

Note to Investors: This press release contains certain forward-looking statements made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Words such as “expects”, “believes”, “anticipates”, “could”, “will likely result”, “estimates”, “intends”, “may”, “projects”, “should”, and variations of these words and similar expressions are intended to identify these forward looking statements. Forward-looking statements are based on the company’s current expectations and assumptions regarding its business, the economy and future conditions. A number of risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements. These risks include, but are not limited to, evolving demand for the company's software products and products that operate with the company's products; the company's ability to sustain license and service demand; the company's ability to leverage changes in technology; the company's ability to sustain customer renewal rates at current levels; the publication of opinions by industry and financial analysts about the company, its products and technology; the reliability of estimates of transaction and integration costs and benefits; the entry of new competitors or new offerings by existing competitors and the associated announcement of new products and technological advances by them; delays in localizing the company's products for new or existing markets; the ability to recruit and retain key personnel; delays in sales as a result of lengthy sales cycles; changes in operating expenses, pricing, timing of new product releases, the method of product distribution or product mix; timely and effective integration of newly acquired businesses; general economic conditions; exchange rate fluctuations; and, the global political environment. In addition, revenue and earnings in the enterprise resource planning (ERP) software industry are subject to fluctuations. Software license revenue, in particular, is subject to variability with a significant proportion of revenue earned in the last month of each quarter. Given the high margins associated with license revenue, modest fluctuations can have a substantial impact on net income. Investors should not use any one quarter's results as a benchmark for future performance. For a more detailed description of the risk factors associated with the company and the industries in which it operates, please refer to the company's Annual Report on Form 10-K for fiscal 2012 ended January 31, 2012, and in particular, the section entitled “Risk Factors” therein, and in other periodic reports the company files with the Securities and Exchange Commission.

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