QAD Acquires DynaSys S.A. Supply Chain Planning Solution Provider

QAD Inc. (NASDAQ: QADA, QADB), a leading provider of enterprise software and services for global manufacturing companies, today said it has acquired Strasbourg, France-based DynaSys S.A., a leading provider of supply chain planning software solutions, for €6.0 million (or approximately US$7.5 million).DynaSys generated revenues of approximately €5.0 million in 2011 and has approximately 40 employees. QAD plans to build on DynaSys’ existing markets and further expand the penetration of n.SKEP, Dynasys’ flagship product, into QAD’s global customers and the global supply chain planning market. DynaSys will operate as a division of QAD. QAD expects the acquisition will add some additional revenue to the second quarter of FY13, however, at this time, the company has no formal update to its prior financial guidance.

"We are very pleased to welcome DynaSys into the QAD organization,” said QAD Chairman and President, Pamela Lopker. “We are excited about the supply chain planning capabilities that DynaSys brings to the QAD product suite, as well as the top-tier customers already using their solution. DynaSys has developed a unique set of capabilities in their n.SKEP product set that we believe will benefit many of our global customers and other companies striving to improve their supply chain effectiveness.”

"At QAD we have a vision for the future where every customer can call themselves an Effective Enterprise, with every business process working at peak efficiency and perfectly aligned to their strategic goals,” continued Lopker. “This acquisition will aid in making that vision a reality by adding additional strength to our current supply chain planning capabilities. In addition, DynaSys is rich in both talent and technology, with exceptional customer commitment, so we see a strong cultural fit between the organizations.”

Ariel Weil, CEO of DynaSys, has been named general manager of QAD’s DynaSys Division.

"We are very excited to be joining QAD, and believe that by joining forces we will be able to continue to serve our existing customers, as well as expand to even more global markets. This is a positive move for DynaSys, QAD, and all of our customers," Weil said. "By leveraging QAD's global footprint and strategic focus on emerging markets, we will be better able to serve existing and new customers in additional geographies. We look forward to a successful future as part of QAD as we work together to improve global supply chain effectiveness, and help customers become effective enterprises."

Founded in 1985, DynaSys provides an integrated suite of demand and supply chain planning solutions. DynaSys customers are primarily in France and other countries in Europe. DynaSys has strong penetration in the luxury goods retail and distribution markets, delivering products that handle the challenges of managing complex global supply chains and fluctuating customer demand. Additionally, DynaSys targets the food and beverage and retail markets, where the ability to plan millions of items simultaneously is critical to successful supply chain optimization. DynaSys also has customers in the pharmaceutical, cosmetics and chemical markets, often supporting them in highly-regulated environments.

DynaSys’ main solution, n.SKEP, is a fully integrated supply chain planning suite. n.SKEP has been built on a single coherent architecture featuring ‘single click collaborative®’ technology that provides the different players involved in the supply chain access to all decision elements in order to commit to a demand forecast plan. n.SKEP features a memory resident planning model with a common user interface metaphor across all functions; addresses planning related to demand, distribution, production, procurement and master planning; and supports a fully integrated ‘real time’ approach to sales and operations planning (S&OP). The memory resident architecture allows extremely high system performance and simulation for demand calculation for millions of items.

About QAD

QAD is a leading provider of enterprise applications for global manufacturing companies specializing in automotive, consumer, electronics, food and beverage, industrial and life sciences products. QAD applications 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

“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.


Press Contact:

John Neale
QAD Senior Vice President & Treasurer
+1 805 566 5117

Laurie Berman/Rob Whetstone
PondelWilkinson Inc.
+1 310 279 5980