Aberdeen Group Reports That QAD Customers on Average Enjoy Greatest Business Performance Gains

CARPINTERIA, Calif. & PRAGUE--QAD Inc. (NASDAQ:QADI), a leading provider of enterprise software applications for global manufacturers, delivers the best average performance gain at the lowest cost per percentage point of improvement, according to “The Total Cost of ERP Ownership” published by Aberdeen Group.

The research firm’s recent assessment of five major ERP software suites found that QAD’s customers outperform the others in vital areas of business impact that contribute to total cost of ownership (TCO). Aberdeen surveyed more than 1,100 companies of all sizes to benchmark ERP in manufacturing, and found that functionality and total cost of ownership (TCO) were clearly the top two selection criteria in ERP software decisions. Recognizing that ERP software and services costs and cost per user are not the only indicators of ERP value, Aberdeen researchers also measured the business impact of the software applications.

“Average improvements across all of these measures put QAD users squarely ahead of its competitors’ users both in terms of performance gains and cost per percentage point of improvement,” said Cindy Jutras, Vice President & Service Director, Manufacturing & ERP, Aberdeen Group. “Once a threshold is reached and dues are paid, payback multiplies as ERP penetrates more broadly and deeply into an organization.”

The researchers assessed cost per percentage point of software functionality deployed, and found that QAD software outpaced other ERP suites when it came to reduction in manufacturing operational costs, reduction of administrative costs, improved manufacturing schedule compliance, and improved complete and on-time shipments – where QAD delivered the greatest difference. On average, QAD customers experienced the highest average improvement, at 18 percent, and the lowest cost per percent point of improvement of all the vendors.

“Aberdeen’s research shows that QAD software delivers the greatest value to customers, returning benefits at the lowest cost for business impact,” said Pamela Lopker, chairman and president of QAD. “The findings validate our progress on our vision for the perfect lean market, in which demand and manufacturing information is in the right place at the right time so that supply chain partners can collaborate and compete effectively.”

At QAD Explore EMEA, its European user conference, QAD also announced today offerings designed to continue the company’s Demand-Driven Enterprise Initiative (New QAD Software and Services Strengthen Demand-Driven Enterprise, November 14, 2006). The company debuted new software modules to address high-quality customer relationships, optimization of planning and inventory, and compliance with regulatory and customer requirements for delivery of goods.

QAD also introduced new consulting services to advance customers’ efficient, cost-effective use of QAD software. Rounding out the news were more customizable learning and an updated .NET-based user interface, designed to help employees work with manufacturing data more productively.

About QAD

QAD is a leading provider of enterprise applications for global manufacturing companies. 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. Manufacturers of automotive, consumer products, electronics, food and beverage, industrial and life science products use QAD applications at approximately 5,500 licensed sites in more than 90 countries and in as many as 27 languages. For more information about QAD, telephone +1 805 684 6614, or visit the QAD Web site at: www.qad.com.