Exhibit 99.1
FOR IMMEDIATE RELEASE
For more information, contact:
Ina McGuinness David Claus
QAD Investor Relations QAD Public Relations
(805) 566-4445 (805) 566-6015
inam@qad.com david_claus@qad.com
QAD ACQUIRES EUROPEAN DISTRIBUTION BUSINESS FROM TRW
CARPINTERIA, Calif. - November 18, 1998: QAD Inc. (NASDAQ: QADI) today
announced it has acquired the UK and the Netherlands software distribution
operations and assets of TRW Integrated Supply Chain Solutions (formerly
known as BDM Largotim) for $20.7 million, comprised of $6.9 million in cash
and a two-year promissory note. QAD expects the acquisition to be accretive
to earnings.
This transaction allows QAD and TRW to capitalize more effectively on
their core competencies, and will strengthen their joint efforts as they move
forward. QAD will continue to focus on software development, sales and
services, while TRW will leverage its worldwide presence as a key systems
integrator for all QAD applications.
QAD's acquisition of the TRW distribution business brings more than 200
employees from QAD's largest distributor of MFG/PRO enterprise software in
Europe under the QAD name. These employees are trained in implementation,
support, education and training services. David Redwood, 55, who founded
Largotim in 1979, joins QAD as vice president of Europe, Middle East and
Africa.
The purchase also includes the acquisition of products complementary to
QAD applications including embedded Warehousing, Time Phased Availability
Check, Multi Level Pegging, Tool Management, Euro Accounting, Payroll and
Personnel. In addition, TRW granted QAD worldwide distribution rights for
TRW's PROCON, an MFG/PRO product configurator, and AIM, an MFG/PRO
non-embedded warehousing product.
QAD Chief Executive Officer Karl F. Lopker said, "Bringing the largest
of QAD's distributor operations into QAD represents a significant milestone
for us in terms of how we will address our European, Middle East and African
markets. We are pleased to have added to our skilled distribution staff and
strong management team as we further strengthen our global operations. At
the same time, we look forward to our enhanced relationship with TRW which
now will become a worldwide systems integrator for our entire suite of QAD
applications."
"TRW will become a global QAD systems integrator for MFG/PRO and On/Q
applications," stated David L. Patterson, vice president and general manager
of TRW ISCS. "This sale sharpens our focus on providing systems integration
services across the supply chain to mid-sized and large enterprises. We will
continue to expand our systems integration business on a global scale and we
look forward to continuing to work closely with QAD application
implementations."
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. A number of risks and uncertainties could cause actual
results to differ materially from those in the forward-looking statements.
These risks include evolving demand for the company's software products and
products that operate with the company's products, the publication of
opinions by industry analysts about the company, its products and technology,
the entry of new competitors and their technological advances, delays in
localizing the company's products for new markets, 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; and
general economic factors. In addition, revenue and earnings in the
enterprise resource planning (ERP) software industry are subject to
fluctuations and the growth rates recently experienced by the company do not
necessarily represent future operating results. For a more detailed
description of the risk factors associated with the company and the
enterprise resource planning industry, please refer to the company's Annual
Report or Form 10-K for the fiscal year ended January 31, 1998.
About TRW ISCS
TRW Integrated Supply Chain Solutions provides total supply chain
solutions from management consulting, to enterprise resource planning,
manufacturing execution systems, and logistics execution solutions. The ISCS
business spans the supply chain continuum, serving manufacturing,
distribution and transportation clients in a wide range of industry sectors
including: automotive, semiconductor manufacturing, consumer packaged goods,
pharmaceuticals and medical, electronics, aerospace and defense, third-party
logistics, grocery, retail, apparel, and wholesale distribution. For further
information, please visit http://www.trw.com/supplychain.
About QAD
Founded in 1979, QAD is a leading provider of ERP and extended supply
chain management software to multinational companies of all sizes, with
special focus on the mid-market. Available in 26 languages and able to
support multiple currencies, QAD software helps speed business processes for
more than 300,000 licensed users at more than 4,000 licensed sites in more
than 80 countries. Ideal for distributed operations, QAD's MFG/PRO software
is specifically designed for global manufacturers in the following
industries: automotive, consumer products, food and beverage, industrial,
electronics, and medical. QAD revenues for the fiscal year ended January 31,
1998, totaled $170 million.
For more information about QAD, telephone +1 805 684 6614, or visit the
QAD web site at http://www.qad.com. To receive any of QAD's press releases
via facsimile, contact 1 800 356-0747, or outside the U.S. contact +1 213
253-5647.
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QAD is a trademark and MFG/PRO-Registered Trademark- is a registered trademark
of QAD Inc. All other products or company names herein may be trademarks of
their respective owners.