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Fiber Optic Manufacturer m2fx Doubles Revenue in 18 Months Since Implementing QAD On Demand

QAD Inc. (NASDAQ:QADA) (NASDAQ:QADB), a leading provider of enterprise software and services for global manufacturing companies, today announced m2fx, the British fiber optic cable and micro-duct manufacturer, has realized significant return on investment (ROI) as a result of utilizing QAD On Demand as their full-strength enterprise resource planning (ERP) cloud solution. QAD On Demand has supported the m2fx operations during an 18 month period when the inventor and manufacturer of Miniflex™ Fiber Cable doubled revenue.

“In 2011 we sought an ERP solution to support the company’s aggressive growth without taxing the budget and IT resources,” said Tom Carpenter, CEO of m2fx. “QAD On Demand stood out for its proven ERP functionality. QAD On Demand allows us to focus on growing our business, not the software.”

QAD On Demand Delivers Affordable Full-Strength ERP Functionality

Founded in 1994 as a telecommunications consultancy, m2fx began commercial manufacturing of their products in 2008. M2fx has catapulted to the forefront of fiber optic protection technology. Based in Suffolk, U.K., the company operates in multiple locations, and offers everything needed to install and protect raw fiber optics. “QAD On Demand has mitigated many of the IT and financial risks associated with a new ERP implementation, as all of the software, systems and infrastructure are managed and administered by QAD in a secure, reliable and industry compliant data center,” added Carpenter. “With QAD, we’ve benefited from a level of ERP functionality typically enjoyed by much larger companies, yet affordable and adaptable enough to support the company as it continues to expand.”

With QAD On Demand integrated globally across the functions of the company, m2fx has realized the following results:

  • On-time delivery at 95% or greater
  • Material shortages are less frequent since implementation
  • Key business metrics are measured and monitored from within the application
    • Real-time visibility of business data and ease of accessibility are significantly improved
  • Clear visibility into margin drivers so they can be proactively managed
  • Global visibility and access to one source of data for stock availability and production plans

“The merits of QAD On Demand are clear: a low capital expenditure with predictable operational expenditures, no server expertise required in-house and an extremely reliable cloud connection,” said Carpenter. “Moreover, QAD On Demand offers a responsive user experience, as fast if not faster than if the application were on our own local servers, and yet allows global access and cost-effective scalability. I look forward to a future of becoming an even more effective enterprise with QAD.”

QAD On Demand: Proven ERP SaaS for Manufacturers Since 2007

QAD On Demand provides the same functionality and user experience as QAD Enterprise Applications On Premise. As software-as-a-service (SaaS), QAD On Demand benefits customers with automatic upgrades 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 imagines a future where our customers’ business processes are operating at peak efficiency and perfectly aligned with their strategic goals,” said Gordon Fleming, CMO at QAD. “We are committed to helping companies like m2fx address their needs to become an ever more ‘Effective Enterprise’.”

For more information about QAD On Demand, please visit: http://www.qad.com/on-demand-software

About m2fx

m2fx make hard plastic flexible through their patented grooved design and process, protecting Optical Fiber in the last 200 meters of an install. Best known for their Miniflex™ Protection Tube, Cable and Microduct products; m2fx specialize in tough yet flexible FTTX Cable/Microduct routing products that are designed to protect fiber yet still be ultra flexible to enable fast and efficient installation in the field. www.m2fx.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:

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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