QAD Announces Closing of Public Offering of Common Stock

SANTA BARBARA, Calif.--()--QAD Inc. (NASDAQ: QADA) (NASDAQ: QADB), a leading provider of enterprise business software and services for global manufacturing companies, today announced the closing of an underwritten public offering of 3,000,000 shares of its Class A common stock, which were sold at a price to the public of $20.00 per share. 2,000,000 of the shares of Class A common stock were sold by QAD and 1,000,000 of the shares of Class A common stock were sold by the company’s controlling stockholders Karl F. Lopker and Pamela M. Lopker through their living trust. Additionally, QAD has granted the underwriters a 30-day option to purchase up to 450,000 additional shares of its Class A common stock from the Company in the public offering.

Stifel, William Blair, and Canaccord Genuity acted as the bookrunning managers for the offering. The Benchmark Company acted as a co-manager for the offering.

The net proceeds to QAD from the sale of 2,000,000 shares of Class A common stock were approximately $37.1 million after deducting underwriting discounts and commissions and estimated offering expenses payable by QAD.

The securities described above were offered by QAD pursuant to a shelf registration statement on Form S-3 (No. 333-198779) including a base prospectus. The securities were offered only by means of a prospectus. A preliminary prospectus supplement and a final prospectus supplement related to the offering have been filed with the SEC and are available on the SEC's website located at www.sec.gov. Copies of the preliminary prospectus supplements and the related prospectuses relating to the securities offered may also be obtained by contacting Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, California 94104, by telephone at (415) 364-2720 or by email to syndprospectus@stifel.com; or by contacting William Blair & Company, L.L.C. at 222 West Adams Street, Chicago, IL 60606, Attention: Prospectus Department, by telephone at (800) 621-0687, or by email at prospectus@williamblair.com; or by contacting Canaccord Genuity Inc., Attn: Syndicate Department, 99 High Street, Floor 12, Boston, MA 02110, by telephone at (617) 371-3900, or by email at prospectus@canaccordgenuity.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About QAD

QAD Inc. (NASDAQ: QADA) (NASDAQ: QADB) is a leading provider of enterprise software and services designed for global manufacturing companies. For more than 35 years, QAD has provided global manufacturing companies with QAD Enterprise Applications, an enterprise resource planning (ERP) system that supports operational requirements, including financials, manufacturing, demand and supply chain planning, customer management, business intelligence and business process management. QAD Enterprise Applications is offered in flexible deployment models as on-premise software, in the cloud with QAD Cloud ERP or in a blended environment. With QAD, customers and partners in the automotive, consumer products, food and beverage, high technology, industrial products and life sciences industries can better align daily operations with their strategic goals to meet their vision of becoming more Effective Enterprises.

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

Forward Looking Statements

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, including, but not limited to, statements regarding the sale of shares in a public offering. Forward-looking statements are based on the company’s current expectations. Words such as “expects”, “believes”, “anticipates”, “could”, “will likely result”, “estimates”, “intends”, “may”, “projects”, “should”, “would”, “might”, “plan” and variations of these words and similar expressions are intended to identify these forward looking statements. 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 products and companion products; the ability to sustain license and service demand; fluctuation in revenue and earnings in the software industry; the ability to leverage changes in technology; the ability to sustain customer renewal rates at current levels; third party opinions about the company; the reliability of estimates of transaction and integration costs and benefits; competition in our industry; delays in localizing the company's products for new or existing markets; the ability to recruit and retain key personnel; delays in sales; 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. For a more detailed description of the risk factors associated with the company, please refer to the company’s Current Report on Form 8-K dated January 6, 2015 and the periodic reports the company files with the Securities and Exchange Commission thereafter. Management does not undertake to update these forward-looking statements except as required by law.

Contacts

QAD Inc.
John Neale
Senior Vice President and Treasurer
805-566-5117
investor@qad.com
or
PondelWilkinson Inc.
Laurie Berman/Matt Sheldon
310-279-5980
pwinvestor@pondel.com

Contacts

QAD Inc.
John Neale
Senior Vice President and Treasurer
805-566-5117
investor@qad.com
or
PondelWilkinson Inc.
Laurie Berman/Matt Sheldon
310-279-5980
pwinvestor@pondel.com