Qad (QADA) 10-Q 7 Jun 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 30, 2016	May. 31, 2016
Entity Information [Line Items]
Entity Registrant Name	QAD INC
Entity Central Index Key	1,036,188
Current Fiscal Year End Date	--01-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 30, 2016
Common Class A [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		15,609,867
Common Class B [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		3,205,362

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 31, 2016
Current assets:
Cash and equivalents	$ 139,878	$ 137,731
Accounts receivable, net of allowances of $2,518 and $2,642 at April 30, 2016 and January 31, 2016, respectively	44,829	65,512
Deferred tax assets, net	8,527	8,203
Other current assets	18,960	16,024
Total current assets	212,194	227,470
Property and equipment, net	32,269	32,080
Capitalized software costs, net	1,321	1,553
Goodwill	10,771	10,645
Deferred tax assets, net	12,261	11,919
Other assets, net	2,560	2,679
Total assets	271,376	286,346
Current liabilities:
Current portion of long-term debt	428	422
Accounts payable	7,867	10,811
Deferred revenue	92,640	97,911
Other current liabilities	26,624	31,535
Total current liabilities	127,559	140,679
Long-term debt	14,082	14,191
Other liabilities	$ 4,387	$ 4,465
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value. Authorized 5,000,000 shares; none issued or outstanding	$ 0	$ 0
Common stock:
Additional paid-in capital	196,596	195,420
Treasury stock, at cost (1,331,008 shares and 1,365,885 shares at April 30, 2016 and January 31, 2016, respectively)	(18,104)	(18,717)
Accumulated deficit	(45,041)	(40,983)
Accumulated other comprehensive loss	(8,123)	(8,729)
Total stockholders' equity	125,348	127,011
Total liabilities and stockholders' equity	271,376	286,346
Common Class A [Member]
Common stock:
Common stock value	16	16
Common Class B [Member]
Common stock:
Common stock value	$ 4	$ 4

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 31, 2016
Current assets:
Accounts receivable, net of allowances	$ 2,518	$ 2,642
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock:
Treasury stock, at cost (in shares)	1,331,008	1,365,885
Common Class A [Member]
Common stock:
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	71,000,000	71,000,000
Common stock, shares issued (in shares)	16,603,799	16,603,729
Common Class B [Member]
Common stock:
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	4,000,000	4,000,000
Common stock, shares issued (in shares)	3,537,380	3,537,366

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Revenue:
License fees	$ 3,947	$ 6,851
Subscription fees	11,492	9,419
Maintenance and other	32,836	33,383
Professional services	17,122	19,612
Total revenue	65,397	69,265
Costs of revenue:
License fees	725	929
Subscription fees	6,197	5,064
Maintenance and other	7,763	7,777
Professional services	17,425	18,328
Total cost of revenue	32,110	32,098
Gross profit	33,287	37,167
Operating expenses:
Sales and marketing	16,922	17,145
Research and development	11,134	10,657
General and administrative	8,005	8,441
Amortization of intangibles from acquisitions	165	164
Total operating expenses	36,226	36,407
Operating (loss) income	(2,939)	760
Other expense (income):
Interest income	(172)	(57)
Interest expense	174	183
Other expense (income), net	870	(119)
Total other expense (income), net	872	7
(Loss) income before income taxes	(3,811)	753
Income tax (benefit) expense	(1,069)	204
Net (loss) income	(2,742)	549
Diluted net (loss) income per share
Net (loss) income	(2,742)	549
Other comprehensive income, net of tax:
Foreign currency translation adjustments	606	73
Total comprehensive (loss) income	(2,136)	622
Common Class A [Member]
Other expense (income):
Net (loss) income	$ (2,341)	$ 468
Basic net (loss) income per share
Earnings per share (in dollars per share)	$ (0.15)	$ 0.03
Diluted net (loss) income per share
Earnings per share (in dollars per share)	$ (0.15)	$ 0.03
Net (loss) income	$ (2,341)	$ 468
Common Class B [Member]
Other expense (income):
Net (loss) income	$ (401)	$ 81
Basic net (loss) income per share
Earnings per share (in dollars per share)	$ (0.13)	$ 0.03
Diluted net (loss) income per share
Earnings per share (in dollars per share)	$ (0.13)	$ 0.02
Net (loss) income	$ (401)	$ 81

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Cash flows from operating activities:
Net (loss) income	$ (2,742)	$ 549
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	1,476	1,454
Provision for doubtful accounts and sales adjustments	49	311
Stock compensation expense	1,554	1,306
Change in fair value of derivative instrument	31	(245)
Excess tax benefits from share-based payment arrangements	(222)	(151)
Changes in assets and liabilities:
Accounts receivable	21,430	26,823
Other assets	(2,960)	(1,122)
Accounts payable	(3,151)	(4,456)
Deferred revenue	(7,480)	(11,157)
Other liabilities	(6,850)	(8,976)
Net cash provided by operating activities	1,135	4,336
Cash flows from investing activities:
Purchase of property and equipment	(1,074)	(1,140)
Capitalized software costs	(12)	(28)
Net cash used in investing activities	(1,086)	(1,168)
Cash flows from financing activities:
Repayments of debt	(106)	(102)
Tax payments, net of proceeds, related to stock awards	(369)	(391)
Payment of contingent liability associated with acquisitions	0	(750)
Excess tax benefits from share-based payment arrangements	222	151
Proceeds from issuance of common stock, net of issuance of costs	0	8,365
Net cash (used in) provided by financing activities	(253)	7,273
Effect of exchange rates on cash and equivalents	2,351	(103)
Net increase in cash and equivalents	2,147	10,338
Cash and equivalents at beginning of period	137,731	120,526
Cash and equivalents at end of period	139,878	130,864
Supplemental disclosure of non-cash activities:
Obligations associated with dividend declaration	$ 1,316	$ 1,299

BASIS OF PRESENTATION AND RECEN

BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Apr. 30, 2016
BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS	1. BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS Basis of Presentation In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements fairly present the financial information contained therein. These statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In management’s opinion, all necessary adjustments, consisting of normal, recurring and non-recurring adjustments, have been included in the accompanying Condensed Consolidated Financial Statements to present fairly the financial position and operating results of QAD Inc. (“QAD” or the “Company”). The Condensed Consolidated Financial Statements do not include all disclosures required by accounting principles generally accepted in the United States of America for annual financial statements and should be read in conjunction with the audited financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2016. The Condensed Consolidated Financial Statements include the results of the Company and its wholly owned subsidiaries. The results of operations for the three months ended April 30, 2016 are not necessarily indicative of the results to be expected for the year ending January 31, 2017. Recent Accounting Pronouncements In May 2014, the FASB issued accounting standard update, or ASU, 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, In April 2015, the FASB issued ASU 2015-03 - I nterest - Imputation of Interest (Subtopic 2015-03): Simplifying the Presentation of Debt Issuance Costs In August 2015, the FASB issued ASU 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation: Improvements to Employee Share-Based Payment Accounting

COMPUTATION OF NET (LOSS) INCOM

COMPUTATION OF NET (LOSS) INCOME PER SHARE	3 Months Ended
	Apr. 30, 2016
COMPUTATION OF NET (LOSS) INCOME PER SHARE [Abstract]
COMPUTATION OF NET (LOSS) INCOME PER SHARE	2. COMPUTATION OF NET (LOSS) INCOME PER SHARE The following table sets forth the computation of basic and diluted net (loss) income per share: Three Months Ended April 30, 2016 2015 (in thousands except per share data) Net (loss) income $ (2,742 ) $ 549 Less: Dividends declared (1,316 ) (1,299 ) Undistributed net loss $ (4,058 ) $ (750 ) Net (loss) income per share – Class A Common Stock Dividends declared $ 1,124 $ 1,107 Allocation of undistributed net loss (3,465 ) (639 ) Net (loss) income attributable to Class A common stock $ (2,341 ) $ 468 Weighted average shares of Class A common stock outstanding— basic 15,594 15,262 Weighted average potential shares of Class A common stock — 786 Weighted average shares of Class A common stock and potential common shares outstanding— diluted 15,594 16,048 Basic net (loss) income per Class A common share $ (0.15 ) $ 0.03 Diluted net (loss) income per Class A common share $ (0.15 ) $ 0.03 Net (loss) income per share – Class B Common Stock Dividends declared $ 192 $ 192 Allocation of undistributed net loss (593 ) (111 ) Net (loss) income attributable to Class B common stock $ (401 ) $ 81 Weighted average shares of Class B common stock outstanding— basic 3,204 3,196 Weighted average potential shares of Class B common stock — 83 Weighted average shares of Class B common stock and potential common shares outstanding— diluted 3,204 3,279 Basic net (loss) income per Class B common share $ (0.13 ) $ 0.03 Diluted net (loss) income per Class B common share $ (0.13 ) $ 0.02 Potential common shares consist of the shares issuable upon the release of restricted stock units (“RSUs”) and the exercise of stock options and stock appreciation rights (“SARs”). The Company’s unvested RSUs and unexercised SARs are not considered participating securities as they do not have rights to dividends or dividend equivalents prior to release or exercise. The following table sets forth the number of potential common shares not included in the calculation of diluted earnings per share because their effects were anti-dilutive: Three Months Ended April 30, 2016 2015 (in thousands) Class A 2,807 326 Class B 349 60

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Apr. 30, 2016
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	3. FAIR VALUE MEASUREMENTS When determining fair value, the Company uses a three-tier value hierarchy which prioritizes the inputs used in measuring fair value. Whenever possible, the Company uses observable market data. The Company relies on unobservable inputs only when observable market data is not available. Classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The following table sets forth the financial assets and liabilities, measured at fair value, as of April 30, 2016 and January 31, 2016: Fair value measurement at reporting date using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Money market mutual funds as of April 30, 2016 (a) $ 112,792 Money market mutual funds as of January 31, 2016 (a) $ 113,984 Liability related to the interest rate swap as of April 30, 2016 (b) $ (706 ) Liability related to the interest rate swap as of January 31, 2016 (b) $ (675 ) (a) Money market mutual funds are recorded at fair value based upon quoted market prices. (b) The liability related to the interest rate swap is recorded at fair value based upon a valuation model that uses relevant observable market inputs at quoted intervals, such as forward yield curves. Money market mutual funds are classified as part of “Cash and equivalents” in the accompanying Condensed Consolidated Balance Sheets. In addition, the amount of cash and equivalents, including cash deposited with commercial banks, was $27 million and $24 million as of April 30, 2016 and January 31, 2016, respectively. The Company’s line of credit and notes payable both bear a variable market interest rate commensurate with the Company’s credit standing. Therefore, the carrying amounts outstanding under the line of credit and note payable reasonably approximate fair value based on Level 2 inputs. There have been no transfers between fair value measurements levels during the three months ended April 30, 2016. Derivative Instruments The Company entered into an interest rate swap in May 2012 to mitigate the exposure to the variability of one month LIBOR for its floating rate debt described in Note 6 “Debt” within these Notes to Condensed Consolidated Financial Statements. The fair value of the interest rate swap is reflected as an asset or liability in the Condensed Consolidated Balance Sheets and the change in fair value is reported in “Other (income) expense, net” in the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. The fair value of the interest rate swap is estimated as the net present value of projected cash flows based upon forward interest rates at the balance sheet date. The fair values of the derivative instrument at April 30, 2016 and January 31, 2016 were as follows (in thousands): Liability Fair Value Balance Sheet Location April 30, 2016 January 31, 2016 Derivative instrument: Interest rate swap Other liabilities $ (706 ) $ (675 ) Total $ (706 ) $ (675 ) The change in fair value of the interest rate swap recognized in the Condensed Consolidated Statement of Operations and Comprehensive (Loss) Income for the three months ended April 30, 2016 and April 30, 2015 was $(31,000) and $245,000, respectively.

CAPITALIZED SOFTWARE COSTS

CAPITALIZED SOFTWARE COSTS	3 Months Ended
	Apr. 30, 2016
CAPITALIZED SOFTWARE COSTS [Abstract]
CAPITALIZED SOFTWARE COSTS	4. CAPITALIZED SOFTWARE COSTS Capitalized software costs and accumulated amortization at April 30, 2016 and January 31, 2016 were as follows: April 30, 2016 January 31, 2016 (in thousands) Capitalized software costs: Acquired software technology $ 3,458 $ 3,458 Capitalized software development costs (1) 788 1,029 4,246 4,487 Less accumulated amortization (2,925 ) (2,934 ) Capitalized software costs, net $ 1,321 $ 1,553 (1) Capitalized software development costs include the impact of foreign currency translation. Acquired software technology costs relate to technology purchased as a result of the Company’s fiscal 2013 acquisitions of DynaSys and CEBOS. In addition to the acquired software technology, the Company has capitalized costs related to translations and localizations of QAD Enterprise Applications. It is the Company’s policy to write off capitalized software development costs once fully amortized. Accordingly, during the first three months of fiscal 2017, approximately $0.3 million of costs and accumulated amortization were removed from the balance sheet. Amortization of capitalized software costs was $0.2 million and $0.3 million for the three months ended April 30, 2016 and 2015, respectively. Amortization of capitalized software costs is included in “Cost of license fees” in the accompanying Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. The following table summarizes the estimated amortization expense relating to the Company’s capitalized software costs as of April 30, 2016: Fiscal Years (in thousands) 2017 remaining $ 710 2018 566 2019 42 2020 3 $ 1,321

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	3 Months Ended
	Apr. 30, 2016
GOODWILL AND INTANGIBLE ASSETS [Abstract]
GOODWILL AND INTANGIBLE ASSETS	5. GOODWILL AND INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill for the three months ended April 30, 2016 were as follows: Gross Carrying Amount Accumulated Impairment Goodwill, Net (in thousands) Balance at January 31, 2016 $ 26,253 $ (15,608 ) $ 10,645 Impact of foreign currency translation 126 — 126 Balance at April 30, 2016 $ 26,379 $ (15,608 ) $ 10,771 The Company performed its annual goodwill impairment review during the fourth quarter of fiscal 2016. The analysis compared the Company’s market capitalization to its net assets as of the test date, November 30, 2015. As the market capitalization significantly exceeded the Company’s net assets, there was no indication of goodwill impairment for fiscal 2016. The Company monitors the indicators for goodwill impairment testing between annual tests. No adverse events occurred during the three months ended April 30, 2016, that would cause the Company to test goodwill for impairment. Intangible Assets April 30, 2016 January 31, 2016 (in thousands) Amortizable intangible assets Customer relationships (1) $ 2,796 $ 2,749 Trade name 515 515 3,311 3,264 Less: accumulated amortization (2,392 ) (2,191 ) Net amortizable intangible assets $ 919 $ 1,073 (1) Customer relationships include the impact of foreign currency translation. The Company’s intangible assets are related to the DynaSys and CEBOS acquisitions completed in fiscal 2013. Intangible assets are included in “Other assets, net” in the accompanying Condensed Consolidated Balance Sheets. As of April 30, 2016, all of the Company’s intangible assets were determined to have finite useful lives, and therefore were subject to amortization. Amortization of intangible assets was $0.2 million for each of the first quarters of fiscal 2017 and 2016. The following table summarizes the estimated amortization expense relating to the Company’s intangible assets as of April 30, 2016: Fiscal Years (in thousands) 2017 remaining $ 499 2018 420 $ 919

DEBT

DEBT	3 Months Ended
	Apr. 30, 2016
DEBT [Abstract]
DEBT	6. DEBT April 30, 2016 January 31, 2016 (in thousands) Note payable $ 14,574 $ 14,680 Less current maturities (428 ) (422 ) Less loan origination costs, net (64 ) (67 ) Long-term debt $ 14,082 $ 14,191 Note Payable Effective May 30, 2012, QAD Ortega Hill, LLC entered into a variable rate credit agreement (the “2012 Mortgage”) with Rabobank, N.A., to refinance a pre-existing mortgage. The 2012 Mortgage has an original principal balance of $16.1 million and bears interest at the one month LIBOR rate plus 2.25%. One month LIBOR was 0.44% at April 30, 2016. The 2012 Mortgage matures in June 2022 and is secured by the Company’s headquarters located in Santa Barbara, California. In conjunction with the 2012 Mortgage, QAD Ortega Hill, LLC entered into an interest rate swap with Rabobank, N.A. The swap agreement has an initial notional amount of $16.1 million and a schedule matching that of the underlying loan that synthetically fixes the interest rate on the debt at 4.31% for the entire term of the 2012 Mortgage. The terms of the 2012 Mortgage provide for QAD Ortega Hill, LLC to make net monthly payments of $88,100 consisting of principal and interest and one final payment of $11.7 million. The unpaid balance as of April 30, 2016 was $14.6 million. Credit Facility The Company has an unsecured credit agreement with Rabobank, N.A. (the “Facility”). The Facility provides a commitment through July 15, 2017 for a $20 million line of credit for working capital or other business needs. The Company pays a commitment fee of 0.25% per annum of the daily average of the unused portion of the $20 million Facility. Borrowings under the Facility bore interest at a rate equal to one month LIBOR plus 0.75%. At April 30, 2016, the effective borrowing rate would have been 1.19%. The Facility provides that the Company maintain certain financial and operating ratios which include, among other provisions, minimum liquidity on a consolidated basis of $25 million in cash and equivalents at all times, a current ratio (calculated using current liabilities excluding deferred revenue) of not less than 1.3 to 1.0 determined at the end of each fiscal quarter, a leverage ratio of not more than 1.5 to 1.0 determined at the end of each fiscal quarter, and a debt service coverage ratio of not less than 1.5 to 1.0 determined at the end of each fiscal year. The Facility also contains customary covenants that could restrict the Company’s ability to incur additional indebtedness. As of April 30, 2016, there were no borrowings under the Facility and the Company was in compliance with all financial covenants.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	3 Months Ended
	Apr. 30, 2016
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract]
ACCUMULATED OTHER COMPREHENSIVE LOSS	7. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss, net of taxes, were as follows: Foreign Currency Translation Adjustments (in thousands) Balance as of January 31, 2016 $ (8,729 ) Other comprehensive income before reclassifications 606 Amounts reclassified from accumulated other comprehensive loss — Net current period other comprehensive income 606 Balance as of April 30, 2016 $ (8,123 ) During the first quarter of fiscal 2017 there were no reclassifications from accumulated other comprehensive loss.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Apr. 30, 2016
INCOME TAXES [Abstract]
INCOME TAXES	8. INCOME TAXES The Company’s income tax provision for the first quarter of fiscal 2017 and 2016 reflects estimates of the effective tax rates expected to be applicable for the full fiscal years, adjusted for any discrete events which are recorded in the period they occur. The Company recorded income tax (benefit) expense of $(1.1) million and $0.2 million in the first quarter of fiscal 2017 and fiscal 2016, respectively. The effective tax rate was 28% during the first quarter of fiscal 2017 compared to 27% for the same period in the prior year. The difference in rates was primarily due to jurisdictional mix and lower forecasted book income in fiscal 2017. The estimated annual effective tax rate increased to 30% from 28% in the previous fiscal year 2016. The difference in rates is primarily due to jurisdictional mix. The gross amount of unrecognized tax benefits was $1.5 million at April 30, 2016, including interest and penalties. As a result of adoption of ASU 2013-11, the Company reduced its unrecognized tax benefits by $1.0 million with an accompanying reduction of deferred tax assets by $1.0 million. The entire amount of unrecognized tax benefits, if recognized, will impact the Company’s effective tax rate. This liability is classified as long-term unless the liability is expected to conclude within twelve months of the reporting date. In the next twelve months, due to potential settlements with domestic tax authorities related to tax credits and lapse in statute of limitations, an estimated $0.1 million of gross unrecognized tax benefits may be recognized. The Company’s policy is to recognize interest and penalties, if any, related to unrecognized tax benefits as a component of income tax expense. As of April 30, 2016, the Company has accrued approximately $0.2 million of interest and penalty expense relating to unrecognized tax benefits. The Company files U.S. federal, state, and foreign tax returns that are subject to audit by various tax authorities. The Company is currently under audit in: · India for fiscal years ended March 31, 1998, 1999, 2010, 2012, 2013 and 2014 · Thailand for fiscal year ended 2014 During the first three months of fiscal year 2017, QAD has settled the following audits with immaterial or no adjustments made as a result of the settlements: · Italy for the fiscal years ended 2011, 2012, 2013 and 2014 · Wisconsin for the fiscal years ended 2012, 2013 and 2014

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Apr. 30, 2016
STOCKHOLDERS' EQUITY [Abstract]
STOCKHOLDERS' EQUITY	9. STOCKHOLDERS’ EQUITY Issuance of Common Stock On January 22, 2015, the Company closed an offering of 2,000,000 shares of Class A common stock. The net proceeds to the Company from the sale of the stock were $37.0 million after deducting underwriting discounts and commissions and offering expenses. On February 18, 2015 the offering underwriters exercised in full an option to purchase additional shares. As a result, 450,000 shares of Class A common stock were issued generating approximately $8.4 million in additional net proceeds. Dividends The following table sets forth the dividends that were declared by the Company during the first quarter of fiscal 2017: Declaration Date Record Date Payable Dividend Class A Dividend Class B Amount 4/12/2016 4/26/2016 5/3/2016 $ 0.072 $ 0.06 $ 1,316,000

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Apr. 30, 2016
STOCK-BASED COMPENSATION [Abstract]
STOCK-BASED COMPENSATION	10. STOCK-BASED COMPENSATION The Company’s equity awards consist of SARs and RSUs. For a description of the Company’s stock-based compensation plans, see Note 5 “Stock-Based Compensation” in Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended January 31, 2016. Stock-Based Compensation The following table sets forth reported stock-based compensation expense for the three months ended April 30, 2016 and 2015: Three Months Ended April 30, 2016 2015 (in thousands) Cost of subscription $ 19 $ 12 Cost of maintenance and other revenue 61 46 Cost of professional services 155 119 Sales and marketing 261 261 Research and development 227 148 General and administrative 831 720 Total stock-based compensation expense $ 1,554 $ 1,306 SAR Information The following table summarizes the activity for outstanding SARs for the three months ended April 30, 2016: SARs (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at January 31, 2016 2,596 $ 14.74 Granted — — Exercised (20 ) 10.44 Expired — — Forfeited (6 ) 12.16 Outstanding at April 30, 2016 2,570 $ 14.78 4.6 $ 14,640 Vested and expected to vest at April 30, 2016 (1) 2,566 $ 14.78 4.6 $ 14,616 Vested and exercisable at April 30, 2016 1,503 $ 11.52 3.6 $ 11,773 (1) The expected-to-vest SARs are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding SARs. The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the aggregate difference between the closing stock price of the Company’s common stock based on the last trading day as of April 30, 2016, and the exercise price for in-the-money SARs) that would have been received by the holders if all SARs had been exercised on April 30, 2016. The total intrinsic value of SARs exercised in the three months ended April 30, 2016 was $0.2 million. The number of SARs exercised includes shares withheld on behalf of employees to satisfy minimum statutory tax withholding requirements. During the quarter ended April 30, 2016, the Company withheld 3,400 shares for payment of these taxes at a value of $69,000. At April 30, 2016, there was approximately $5.0 million of total unrecognized compensation cost related to unvested SARs. This cost is expected to be recognized over a weighted-average period of approximately 2.4 years. RSU Information The estimated fair value of RSUs was calculated based on the closing price of the Company’s common stock on the date of grant, reduced by the present value of dividends foregone during the vesting period. The following table summarizes the activity for RSUs for the three months ended April 30, 2016: RSUs Weighted Average Grant Date Fair Value (in thousands) Restricted stock at January 31, 2016 617 $ 20.91 Granted — — Released (1) (45 ) 20.41 Forfeited (16 ) 21.15 Restricted stock at April 30, 2016 556 $ 20.94 (1) The number of RSUs released includes shares withheld on behalf of employees to satisfy statutory tax withholding requirements. The Company withholds, at the employee’s election, a portion of the released shares as consideration for the Company’s payment of applicable employee income taxes. During the three months ended April 30, 2016, the Company withheld 16,000 shares for payment of these taxes at a value of $0.3 million. Total unrecognized compensation cost related to RSUs was approximately $8.2 million as of April 30, 2016. This cost is expected to be recognized over a weighted-average period of approximately 2.6 years.

DEFERRED REVENUES

DEFERRED REVENUES	3 Months Ended
	Apr. 30, 2016
DEFERRED REVENUES [Abstract]
DEFERRED REVENUES	11. DEFERRED REVENUES Deferred revenues consisted of the following: April 30, 2016 January 31, 2016 (in thousands) Deferred maintenance revenue $ 73,594 $ 79,533 Deferred subscription revenue 15,397 14,194 Deferred services revenue 1,984 2,332 Deferred license revenue 1,248 1,549 Deferred other revenue 417 303 Deferred revenues, current 92,640 97,911 Deferred revenues, non-current (in Other liabilities) 1,486 1,690 Total deferred revenues $ 94,126 $ 99,601 Deferred maintenance and subscription revenues represent customer payments made in advance for support and subscription contracts. Support and subscription are billed in advance with corresponding revenues being recognized ratably over the support and subscription periods. Support is typically billed annually while subscription is typically billed quarterly. Deferred services revenues represent both prepayments for our professional services where revenues for these services are generally recognized as the Company completes the performance obligations for the prepaid services; and services already provided but deferred due to software revenue recognition rules. Deferred license revenues result from undelivered products or specified enhancements, customer specific acceptance provisions and software license transactions that cannot be segmented from undelivered consulting or other services.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Apr. 30, 2016
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	12. COMMITMENTS AND CONTINGENCIES Indemnifications The Company sells software licenses and services to its customers under written agreements. Each agreement contains the relevant terms of the contractual arrangement with the customer and generally includes certain provisions for indemnifying the customer against losses, expenses and liabilities from damages that may be awarded against the customer in the event the Company’s software is found to infringe upon certain intellectual property rights of a third party. The agreements generally limit the scope of and remedies for such indemnification obligations in a variety of industry-standard respects. The Company believes its internal development processes and other policies and practices limit its exposure related to the indemnification provisions of the agreements. For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases under the agreements, the Company cannot determine the maximum amount of potential future payments, if any, related to such indemnification provisions. Legal Actions The Company is subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business. While the outcome of these claims cannot be predicted with certainty, management does not believe that the outcome of any of these legal matters will have a material adverse effect on the Company’s consolidated results of operations, financial position or liquidity.

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION	3 Months Ended
	Apr. 30, 2016
BUSINESS SEGMENT INFORMATION [Abstract]
BUSINESS SEGMENT INFORMATION	13. BUSINESS SEGMENT INFORMATION The Company markets its products and services worldwide, primarily to companies in the manufacturing industry, including automotive, consumer products, food and beverage, high technology, industrial products and life sciences industries. The Company sells and licenses its products through its direct sales force in four geographic regions: North America; Europe, the Middle East and Africa (“EMEA”); Asia Pacific; and Latin America and through distributors where third parties can extend sales reach more effectively or efficiently. The North America region includes the United States and Canada. The EMEA region includes Europe, the Middle East and Africa. The Asia Pacific region includes Asia and Australia. The Latin America region includes South America, Central America and Mexico. The Company’s Chief Operating Decision Maker, the Chief Executive Officer, reviews the consolidated results within one operating segment. License and subscription revenues are assigned to the geographic regions based on both the proportion of users in each region and sales effort. Maintenance revenue is allocated to the region where the end user customer is located. Services revenue is assigned based on the region where the services are performed. Three Months Ended April 30, 2016 2015 Revenue: (in thousands) North America (1) $ 29,519 $ 30,222 EMEA 19,792 21,802 Asia Pacific 11,680 11,725 Latin America 4,406 5,516 $ 65,397 $ 69,265 (1) Sales into Canada accounted for 2% of North America total revenue in each of the three months ended April 30, 2016 and 2015.

BASIS OF PRESENTATION AND REC19

BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	3 Months Ended
	Apr. 30, 2016
BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
Basis of Presentation	Basis of Presentation In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements fairly present the financial information contained therein. These statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In management’s opinion, all necessary adjustments, consisting of normal, recurring and non-recurring adjustments, have been included in the accompanying Condensed Consolidated Financial Statements to present fairly the financial position and operating results of QAD Inc. (“QAD” or the “Company”). The Condensed Consolidated Financial Statements do not include all disclosures required by accounting principles generally accepted in the United States of America for annual financial statements and should be read in conjunction with the audited financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2016. The Condensed Consolidated Financial Statements include the results of the Company and its wholly owned subsidiaries. The results of operations for the three months ended April 30, 2016 are not necessarily indicative of the results to be expected for the year ending January 31, 2017.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued accounting standard update, or ASU, 2014-09, Revenue from Contracts with Customers Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, In April 2015, the FASB issued ASU 2015-03 - I nterest - Imputation of Interest (Subtopic 2015-03): Simplifying the Presentation of Debt Issuance Costs In August 2015, the FASB issued ASU 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation: Improvements to Employee Share-Based Payment Accounting

COMPUTATION OF NET (LOSS) INC20

COMPUTATION OF NET (LOSS) INCOME PER SHARE (Tables)	3 Months Ended
	Apr. 30, 2016
COMPUTATION OF NET (LOSS) INCOME PER SHARE [Abstract]
Computation of basic and diluted net income per share	The following table sets forth the computation of basic and diluted net (loss) income per share: Three Months Ended April 30, 2016 2015 (in thousands except per share data) Net (loss) income $ (2,742 ) $ 549 Less: Dividends declared (1,316 ) (1,299 ) Undistributed net loss $ (4,058 ) $ (750 ) Net (loss) income per share – Class A Common Stock Dividends declared $ 1,124 $ 1,107 Allocation of undistributed net loss (3,465 ) (639 ) Net (loss) income attributable to Class A common stock $ (2,341 ) $ 468 Weighted average shares of Class A common stock outstanding— basic 15,594 15,262 Weighted average potential shares of Class A common stock — 786 Weighted average shares of Class A common stock and potential common shares outstanding— diluted 15,594 16,048 Basic net (loss) income per Class A common share $ (0.15 ) $ 0.03 Diluted net (loss) income per Class A common share $ (0.15 ) $ 0.03 Net (loss) income per share – Class B Common Stock Dividends declared $ 192 $ 192 Allocation of undistributed net loss (593 ) (111 ) Net (loss) income attributable to Class B common stock $ (401 ) $ 81 Weighted average shares of Class B common stock outstanding— basic 3,204 3,196 Weighted average potential shares of Class B common stock — 83 Weighted average shares of Class B common stock and potential common shares outstanding— diluted 3,204 3,279 Basic net (loss) income per Class B common share $ (0.13 ) $ 0.03 Diluted net (loss) income per Class B common share $ (0.13 ) $ 0.02
Number of potential common shares not included in the calculation of diluted net income per share	The following table sets forth the number of potential common shares not included in the calculation of diluted earnings per share because their effects were anti-dilutive: Three Months Ended April 30, 2016 2015 (in thousands) Class A 2,807 326 Class B 349 60

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Apr. 30, 2016
FAIR VALUE MEASUREMENTS [Abstract]
Summary of financial assets and liabilities, measured at fair value	The following table sets forth the financial assets and liabilities, measured at fair value, as of April 30, 2016 and January 31, 2016: Fair value measurement at reporting date using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Money market mutual funds as of April 30, 2016 (a) $ 112,792 Money market mutual funds as of January 31, 2016 (a) $ 113,984 Liability related to the interest rate swap as of April 30, 2016 (b) $ (706 ) Liability related to the interest rate swap as of January 31, 2016 (b) $ (675 ) (a) Money market mutual funds are recorded at fair value based upon quoted market prices. (b) The liability related to the interest rate swap is recorded at fair value based upon a valuation model that uses relevant observable market inputs at quoted intervals, such as forward yield curves.
Fair values of the derivative instrument	The fair values of the derivative instrument at April 30, 2016 and January 31, 2016 were as follows (in thousands): Liability Fair Value Balance Sheet Location April 30, 2016 January 31, 2016 Derivative instrument: Interest rate swap Other liabilities $ (706 ) $ (675 ) Total $ (706 ) $ (675 )

CAPITALIZED SOFTWARE COSTS (Tab

CAPITALIZED SOFTWARE COSTS (Tables)	3 Months Ended
	Apr. 30, 2016
CAPITALIZED SOFTWARE COSTS [Abstract]
Capitalized software costs and amortization	Capitalized software costs and accumulated amortization at April 30, 2016 and January 31, 2016 were as follows: April 30, 2016 January 31, 2016 (in thousands) Capitalized software costs: Acquired software technology $ 3,458 $ 3,458 Capitalized software development costs (1) 788 1,029 4,246 4,487 Less accumulated amortization (2,925 ) (2,934 ) Capitalized software costs, net $ 1,321 $ 1,553 (1) Capitalized software development costs include the impact of foreign currency translation.
Estimated amortization expense	The following table summarizes the estimated amortization expense relating to the Company’s capitalized software costs as of April 30, 2016: Fiscal Years (in thousands) 2017 remaining $ 710 2018 566 2019 42 2020 3 $ 1,321

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	3 Months Ended
	Apr. 30, 2016
GOODWILL AND INTANGIBLE ASSETS [Abstract]
Changes in carrying amount of goodwill	The changes in the carrying amount of goodwill for the three months ended April 30, 2016 were as follows: Gross Carrying Amount Accumulated Impairment Goodwill, Net (in thousands) Balance at January 31, 2016 $ 26,253 $ (15,608 ) $ 10,645 Impact of foreign currency translation 126 — 126 Balance at April 30, 2016 $ 26,379 $ (15,608 ) $ 10,771
Intangible assets	April 30, 2016 January 31, 2016 (in thousands) Amortizable intangible assets Customer relationships (1) $ 2,796 $ 2,749 Trade name 515 515 3,311 3,264 Less: accumulated amortization (2,392 ) (2,191 ) Net amortizable intangible assets $ 919 $ 1,073 (1) Customer relationships include the impact of foreign currency translation.
Estimated amortization expense	The following table summarizes the estimated amortization expense relating to the Company’s intangible assets as of April 30, 2016: Fiscal Years (in thousands) 2017 remaining $ 499 2018 420 $ 919

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Apr. 30, 2016
DEBT [Abstract]
Debt	April 30, 2016 January 31, 2016 (in thousands) Note payable $ 14,574 $ 14,680 Less current maturities (428 ) (422 ) Less loan origination costs, net (64 ) (67 ) Long-term debt $ 14,082 $ 14,191

ACCUMULATED OTHER COMPREHENSI25

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	3 Months Ended
	Apr. 30, 2016
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract]
Components of accumulated other comprehensive loss, net of taxes	The components of accumulated other comprehensive loss, net of taxes, were as follows: Foreign Currency Translation Adjustments (in thousands) Balance as of January 31, 2016 $ (8,729 ) Other comprehensive income before reclassifications 606 Amounts reclassified from accumulated other comprehensive loss — Net current period other comprehensive income 606 Balance as of April 30, 2016 $ (8,123 )

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Apr. 30, 2016
STOCKHOLDERS' EQUITY [Abstract]
Dividends declared	The following table sets forth the dividends that were declared by the Company during the first quarter of fiscal 2017: Declaration Date Record Date Payable Dividend Class A Dividend Class B Amount 4/12/2016 4/26/2016 5/3/2016 $ 0.072 $ 0.06 $ 1,316,000

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Apr. 30, 2016
STOCK-BASED COMPENSATION [Abstract]
Allocation of stock-based compensation expense	The following table sets forth reported stock-based compensation expense for the three months ended April 30, 2016 and 2015: Three Months Ended April 30, 2016 2015 (in thousands) Cost of subscription $ 19 $ 12 Cost of maintenance and other revenue 61 46 Cost of professional services 155 119 Sales and marketing 261 261 Research and development 227 148 General and administrative 831 720 Total stock-based compensation expense $ 1,554 $ 1,306
Activity for outstanding SARs	The following table summarizes the activity for outstanding SARs for the three months ended April 30, 2016: SARs (in thousands) Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Outstanding at January 31, 2016 2,596 $ 14.74 Granted — — Exercised (20 ) 10.44 Expired — — Forfeited (6 ) 12.16 Outstanding at April 30, 2016 2,570 $ 14.78 4.6 $ 14,640 Vested and expected to vest at April 30, 2016 (1) 2,566 $ 14.78 4.6 $ 14,616 Vested and exercisable at April 30, 2016 1,503 $ 11.52 3.6 $ 11,773 (1) The expected-to-vest SARs are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding SARs.
Summary of activity for RSUs	The following table summarizes the activity for RSUs for the three months ended April 30, 2016: RSUs Weighted Average Grant Date Fair Value (in thousands) Restricted stock at January 31, 2016 617 $ 20.91 Granted — — Released (1) (45 ) 20.41 Forfeited (16 ) 21.15 Restricted stock at April 30, 2016 556 $ 20.94 (1) The number of RSUs released includes shares withheld on behalf of employees to satisfy statutory tax withholding requirements.

DEFERRED REVENUES (Tables)

DEFERRED REVENUES (Tables)	3 Months Ended
	Apr. 30, 2016
DEFERRED REVENUES [Abstract]
Deferred revenues	Deferred revenues consisted of the following: April 30, 2016 January 31, 2016 (in thousands) Deferred maintenance revenue $ 73,594 $ 79,533 Deferred subscription revenue 15,397 14,194 Deferred services revenue 1,984 2,332 Deferred license revenue 1,248 1,549 Deferred other revenue 417 303 Deferred revenues, current 92,640 97,911 Deferred revenues, non-current (in Other liabilities) 1,486 1,690 Total deferred revenues $ 94,126 $ 99,601

BUSINESS SEGMENT INFORMATION (T

BUSINESS SEGMENT INFORMATION (Tables)	3 Months Ended
	Apr. 30, 2016
BUSINESS SEGMENT INFORMATION [Abstract]
License and subscription revenues assigned to geographic regions	License and subscription revenues are assigned to the geographic regions based on both the proportion of users in each region and sales effort. Maintenance revenue is allocated to the region where the end user customer is located. Services revenue is assigned based on the region where the services are performed. Three Months Ended April 30, 2016 2015 Revenue: (in thousands) North America (1) $ 29,519 $ 30,222 EMEA 19,792 21,802 Asia Pacific 11,680 11,725 Latin America 4,406 5,516 $ 65,397 $ 69,265 (1) Sales into Canada accounted for 2% of North America total revenue in each of the three months ended April 30, 2016 and 2015.

COMPUTATION OF NET (LOSS) INC30

COMPUTATION OF NET (LOSS) INCOME PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net (loss) income	$ (2,742)	$ 549
Less: Dividends declared	(1,316)	(1,299)
Undistributed net loss	(4,058)	(750)
Net (loss) income per share [Abstract]
Dividends declared	1,316	1,299
Allocation of undistributed net loss	(4,058)	(750)
Net (loss) income attributable to common stock	(2,742)	549
Common Class A [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net (loss) income	(2,341)	468
Less: Dividends declared	(1,124)	(1,107)
Undistributed net loss	(3,465)	(639)
Net (loss) income per share [Abstract]
Dividends declared	1,124	1,107
Allocation of undistributed net loss	(3,465)	(639)
Net (loss) income attributable to common stock	$ (2,341)	$ 468
Weighted average shares of common stock outstanding-basic (in shares)	15,594	15,262
Weighted average potential shares of common stock (in shares)	0	786
Weighted average shares of common stock and potential common shares outstanding-diluted (in shares)	15,594	16,048
Basic net (loss) income per common share (in dollars per share)	$ (0.15)	$ 0.03
Diluted net (loss) income per common share (in dollars per share)	$ (0.15)	$ 0.03
Antidilutive securities excluded from computation of net income per share (in shares)	2,807	326
Common Class B [Member]
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net (loss) income	$ (401)	$ 81
Less: Dividends declared	(192)	(192)
Undistributed net loss	(593)	(111)
Net (loss) income per share [Abstract]
Dividends declared	192	192
Allocation of undistributed net loss	(593)	(111)
Net (loss) income attributable to common stock	$ (401)	$ 81
Weighted average shares of common stock outstanding-basic (in shares)	3,204	3,196
Weighted average potential shares of common stock (in shares)	0	83
Weighted average shares of common stock and potential common shares outstanding-diluted (in shares)	3,204	3,279
Basic net (loss) income per common share (in dollars per share)	$ (0.13)	$ 0.03
Diluted net (loss) income per common share (in dollars per share)	$ (0.13)	$ 0.02
Antidilutive securities excluded from computation of net income per share (in shares)	349	60

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands		Apr. 30, 2016	Jan. 31, 2016	Apr. 30, 2015	Jan. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability related to interest rate swap		$ (706)	$ (675)
Cash and cash equivalents deposited with commercial banks		139,878	137,731	$ 130,864	$ 120,526
Reported Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents deposited with commercial banks		27,000	24,000
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market mutual funds	[1]	112,792	113,984
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability related to interest rate swap	[2]	$ (705)	$ (675)
[1]	Money market mutual funds are recorded at fair value based upon quoted market prices.
[2]	The liability related to the interest rate swap is recorded at fair value based upon a valuation model that uses relevant observable market inputs at quoted intervals, such as forward yield curves.

FAIR VALUE MEASUREMENTS, Deriva

FAIR VALUE MEASUREMENTS, Derivative Instruments (Details) - USD ($)	3 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Jan. 31, 2016
Derivatives, Fair Value [Line Items]
Fair value of derivative instrument	$ (706,000)		$ (675,000)
Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Change in fair value recognized in net income (loss)	(31,000)	$ 245,000
Interest Rate Swap [Member] | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value of derivative instrument	$ (706,000)		$ (675,000)

CAPITALIZED SOFTWARE COSTS (Det

CAPITALIZED SOFTWARE COSTS (Details) - USD ($) $ in Thousands		3 Months Ended
		Apr. 30, 2016	Apr. 30, 2015	Jan. 31, 2016
CAPITALIZED SOFTWARE COSTS [Abstract]
Acquired software technology		$ 3,458		$ 3,458
Capitalized software development costs	[1]	788		1,029
Capitalized software, gross		4,246		4,487
Less accumulated amortization		(2,925)		(2,934)
Capitalized software costs, net		1,321		1,553
Capitalized software development costs, write-off		300
Capitalized computer software amortization		200	$ 300
Estimated Amortization Expense [Abstract]
2017 remaining		499
2,018		420
Total		919		$ 1,073
Capitalized Software [Member]
Estimated Amortization Expense [Abstract]
2017 remaining		710
2,018		566
2,019		42
2,020		3
Total		$ 1,321
[1]	Capitalized software development costs include the impact of foreign currency translation.

GOODWILL AND INTANGIBLE ASSET34

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands		3 Months Ended
		Apr. 30, 2016	Apr. 30, 2015	Jan. 31, 2016
Gross Carrying Amount [Abstract]
Balance, beginning of period		$ 26,253
Impact of foreign currency translation		126
Balance, end of period		26,379
Accumulated Impairment [Abstract]
Balance, beginning of period		(15,608)
Impact of foreign currency translation		0
Balance, end of period		(15,608)
Goodwill, Net [Abstract]
Balance, beginning of period		10,645
Impact of foreign currency translation		126
Balance, end of period		10,771
Intangible Assets [Abstract]
Amortizable intangible assets, gross		3,311		$ 3,264
Less: accumulated amortization		(2,392)		(2,191)
Total		919		1,073
Amortization of intangible assets		165	$ 164
Estimated Amortization Expense [Abstract]
2017 remaining		499
2,018		420
Total		919
Customer Relationships [Member]
Intangible Assets [Abstract]
Amortizable intangible assets, gross	[1]	2,796		2,749
Trade Name [Member]
Intangible Assets [Abstract]
Amortizable intangible assets, gross		$ 515		$ 515
[1]	Customer relationships include the impact of foreign currency translation.

DEBT, Long-term (Details)

DEBT, Long-term (Details) - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 31, 2016
Long-term Debt [Abstract]
Note payable	$ 14,574	$ 14,680
Less current maturities	(428)	(422)
Less loan origination costs, net	(64)	(67)
Long-term debt	$ 14,082	$ 14,191

DEBT, Note Payable (Details)

DEBT, Note Payable (Details) - 2012 Mortgage [Member] - Rabobank N.A [Member] - Quad Ortega Hill LLC [Member] - USD ($)	May. 30, 2012	Apr. 30, 2016
Notes Payable [Abstract]
Original principal amount	$ 16,100,000
Principal and interest	88,100
Final principal payment	$ 11,700,000
Unpaid balance		$ 14,600,000
LIBOR [Member]
Notes Payable [Abstract]
Basis spread on variable rate	2.25%
One month LIBOR		0.44%
Swap Agreement [Member]
Notes Payable [Abstract]
Initial notional amount of swap agreement	$ 16,100,000
Fixed interest rate	4.31%

DEBT, Credit Facility (Details)

DEBT, Credit Facility (Details) - Rabobank N.A [Member] - Unsecured Credit Agreement [Member]	3 Months Ended
	Apr. 30, 2016USD ($)
Credit Facility [Abstract]
Maximum borrowing capacity	$ 20,000,000
Unused capacity commitment fee	0.25%
Effective borrowing rate	1.19%
Liquidity on a consolidated basis, Minimum	$ 25,000,000
Current ratio, Minimum	1.3
Leverage ratio, Maximum	1.5
Debt service coverage ratio, Minimum	1.5
Borrowings outstanding	$ 0
LIBOR [Member]
Credit Facility [Abstract]
Basis spread on variable rate	0.75%

ACCUMULATED OTHER COMPREHENSI38

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) $ in Thousands	3 Months Ended
	Apr. 30, 2016USD ($)
Accumulated Other Comprehensive Income Loss [Line Items]
Balance as of beginning of period	$ (8,729)
Balance as of end of period	(8,123)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Balance as of beginning of period	(8,729)
Other comprehensive income before reclassifications	606
Amounts reclassified from accumulated other comprehensive loss	0
Net current period other comprehensive loss	606
Balance as of end of period	$ (8,123)

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 30, 2016	Apr. 30, 2015	Jan. 31, 2016	Jan. 31, 2015
Income Tax Contingency [Line Items]
Income tax (benefit) expense	$ (1,069)	$ 204
Effective tax rate	28.00%	27.00%	30.00%	28.00%
Unrecognized tax benefits	$ 1,500
Reduction of unrecognized tax benefits	1,000
Reduction of deferred tax assets	1,000
Unrecognized tax benefits recognized in next twelve months	100
Unrecognized tax benefits, income tax penalties and interest accrued	$ 200
India [Member]
Income Tax Contingency [Line Items]
Years in which the company is currently under audit	fiscal years ended March 31, 1998, 1999, 2010, 2012 , 2013 and 2014
Thailand [Member]
Income Tax Contingency [Line Items]
Years for which the company settled audits	fiscal year ended 2014
Italy [Member]
Income Tax Contingency [Line Items]
Years in which the company is currently under audit	fiscal years ended 2011, 2012, 2013 and 2014
Wisconsin [Member]
Income Tax Contingency [Line Items]
Years for which the company settled audits	fiscal years ended 2012, 2013 and 2014

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($)	Feb. 18, 2015	Jan. 22, 2015	Apr. 30, 2016	Apr. 30, 2015
Issuance of common stock [Abstract]
Net proceeds from stock issued			$ 0	$ 8,365,000
Dividends Declaration Date One [Member]
Dividends [Abstract]
Declaration date			Apr. 12, 2016
Record date			Apr. 26, 2016
Payable			May 3, 2016
Amount paid in cash			$ 1,316,000
Common Class A [Member]
Issuance of common stock [Abstract]
Stock issued (in shares)	450,000	2,000,000
Net proceeds from stock issued	$ 8,400,000	$ 37,000,000
Common Class A [Member] | Dividends Declaration Date One [Member]
Dividends [Abstract]
Dividend (in dollars per share)			$ 0.072
Common Class B [Member] | Dividends Declaration Date One [Member]
Dividends [Abstract]
Dividend (in dollars per share)			$ 0.06

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($)		3 Months Ended
		Apr. 30, 2016	Apr. 30, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense		$ 1,554,000	$ 1,306,000
Cost of Subscription [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense		19,000	12,000
Cost of Maintenance and Other Revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense		61,000	46,000
Cost of Professional Services [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense		155,000	119,000
Sales and Marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense		261,000	261,000
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense		227,000	148,000
General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense		$ 831,000	$ 720,000
Stock Appreciation Rights (SARs) [Member]
Stock Appreciation Rights (SARs) [Roll Forward]
Outstanding at beginning of period (in shares)		2,596,000
Granted (in shares)		0
Exercised (in shares)		(20,000)
Expired (in shares)		0
Forfeited (in shares)		(6,000)
Outstanding at end of period (in shares)		2,570,000
Vested and expected to vest (in shares)	[1]	2,566,000
Vested and exercisable (in shares)		1,503,000
Weighted Average Exercise Price per Share [Abstract]
Outstanding at beginning of period (in dollars per share)		$ 14.74
Granted (in dollars per share)		0
Exercised (in dollars per share)		10.44
Expired (in dollars per share)		0
Forfeited (in dollars per share)		12.16
Outstanding at end of period (in dollars per share)		14.78
Vested and expected to vest (in dollars per share)	[1]	14.78
Vested and exercisable (in dollars per share)		$ 11.52
Additional Disclosures [Abstract]
Weighted average remaining contractual term, outstanding at end of period		4 years 7 months 6 days
Weighted average remaining contractual term, vested and expected to vest at end of period	[1]	4 years 7 months 6 days
Weighted average remaining contractual term, vested and exercisable at end of period		3 years 7 months 6 days
Aggregate intrinsic value, outstanding at end of period		$ 14,640,000
Aggregate intrinsic value, vested and expected to vest at end of period	[1]	14,616,000
Aggregate intrinsic value, vested and exercisable at end of period		11,773,000
Total intrinsic value of SARs exercised		$ 200,000
Number of shares withheld for payment of taxes (in shares)		3,400
Value of shares withheld for payment of taxes		$ 69,000
Total unrecognized compensation cost		$ 5,000,000
Weighted-average period to recognize total unrecognized compensation cost		2 years 4 months 24 days
Restricted Stock Units (RSUs) [Member]
Additional Disclosures [Abstract]
Number of shares withheld for payment of taxes (in shares)		16,000
Value of shares withheld for payment of taxes		$ 300,000
Total unrecognized compensation cost		$ 8,200,000
Weighted-average period to recognize total unrecognized compensation cost		2 years 7 months 6 days
Summary of Activity of RSUs [Roll Forward]
Restricted stock at beginning of period (in shares)		617,000
Granted (in shares)		0
Released (in shares)	[2]	(45,000)
Forfeited (in shares)		(16,000)
Restricted stock at end of period (in shares)		556,000
Weighted Average Grant Date Fair Value [Abstract]
Restricted stock at beginning of period (in dollars per share)		$ 20.91
Granted (in dollars per share)		0
Released (in dollars per share)	[2]	20.41
Forfeited (in dollars per share)		21.15
Restricted stock at end of period (in dollars per share)		$ 20.94
[1]	The expected-to-vest SARs are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding SARs.
[2]	The number of RSUs released includes shares withheld on behalf of employees to satisfy statutory tax withholding requirements.

DEFERRED REVENUES (Details)

DEFERRED REVENUES (Details) - USD ($) $ in Thousands	Apr. 30, 2016	Jan. 31, 2016
Deferred Revenue Arrangement [Line Items]
Deferred revenues, current	$ 92,640	$ 97,911
Deferred revenues, non-current (in Other liabilities)	1,486	1,690
Total deferred revenues	94,126	99,601
Deferred Maintenance Revenue [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenues, current	73,594	79,533
Deferred Subscription Revenue [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenues, current	15,397	14,194
Deferred Services Revenue [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenues, current	1,984	2,332
Deferred License Revenue [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenues, current	1,248	1,549
Deferred Other Revenue [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenues, current	$ 417	$ 303

BUSINESS SEGMENT INFORMATION (D

BUSINESS SEGMENT INFORMATION (Details) $ in Thousands		3 Months Ended
		Apr. 30, 2016USD ($)RegionSegment	Apr. 30, 2015USD ($)
BUSINESS SEGMENT INFORMATION [Abstract]
Number of geographic regions | Region		4
Number of operating segments | Segment		1
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue		$ 65,397	$ 69,265
Percentage of sales into Canada of North America total revenue		2.00%	2.00%
North America [Member] | Reportable Geographical Components [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue	[1]	$ 29,519	$ 30,222
EMEA [Member] | Reportable Geographical Components [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue		19,792	21,802
Asia Pacific [Member] | Reportable Geographical Components [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue		11,680	11,725
Latin America [Member] | Reportable Geographical Components [Member]
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue		$ 4,406	$ 5,516
[1]	Sales into Canada accounted for 2% of North America total revenue in each of the three months ended April 30, 2016 and 2015.