FUMO Ostrzeszów Goes Live With QAD ERP Deployment

QAD Enterprise Applications Help European Manufacturer Optimize its Polish Plant
June 8, 2011 - PRLog -- QAD Inc. (NASDAQ-QADA, QADB), a leading provider of enterprise business software and services for global manufacturing companies, today announced that FUMO Ostrzeszów, a leading European manufacturer of specialist machine parts has deployed QAD Enterprise Applications to help optimize the performance of its Ostrzeszów, Poland plant.

FUMO Ostrzeszów produces clutches and brakes used to manufacture machinery and equipment in a variety of industries throughout Europe, and specialize in contract engineering, including the production of custom, technical products. In 2002, the company expanded its drive technology to serve the electric and gear motor and conveyor pulley markets. This expansion was a key driver in FUMO’s decision to implement QAD Enterprise Applications.

Fumo turned to QAD Enterprise Applications to help improve its overall production management process, including improving scheduling and planning, reducing inventories and work-in-process (WIP), and automating its business process and systems. Presently, the company uses several key modules within the QAD Enterprise Applications suite, including purchasing, distribution, warehousing and finance.

“Our highest priorities are to provide quality products and ensure our production capabilities can meet the standards and demands of our customers,” said Zdzisław Kużaj, CEO of Fumo-Ostrzeszów. “QAD Enterprise Applications provide us the business systems we require to help us further improve our operational effectiveness, integrate all our key internal processes and make efficient business decisions, quicker.”

As part of its implementation, Fumo has been particularly focused on planning and scheduling to gain real-time access to its data and improve its flow and integration capabilities. This functionality has provided management the visibility it needs to monitor changes in demand and adjust its production scheduling accordingly. Moreover, in improving its scheduling efficiency, Fumo has been able to better manage its inventory levels and WIP, and improve its delivery schedule accuracy and customer satisfaction.

“Introducing scheduling to our production planning process has allowed us to quickly identify potential bottlenecks and create contingency plans to prevent them,” explained Leszek Wencel, project implementation manager at FUMO-Ostrzeszów. “As a result, we’re able to reduce production time and increase productivity.”

With its full system implementation completed, Fumo is now considering adding QAD Configurator, to also automate its sales and pricing functions.

About FUMO Ostrzeszów
FUMO Ostrzeszów manufactures a wide range of factory controlled clutches and brakes, used in the manufacture of machinery, equipment and a variety of industries. Additionally, the company developed a range of drive technology, used by electric motors, gear motors and Conveyor pulleys. The company has been in the market nearly 20 years, but the tradition and experience dates back to 1963 in Poland, when "FUM Ponar-Ostrzeszów" was significant in factory controlled clutches and brakes.
We have our own research and development center, to ensure our products and customers achieve 100 percent quality. Our products are distributed throughout Europe and Eastern markets.

About QAD
QAD is a leading provider of enterprise resource planning (ERP) applications for global manufacturing companies. QAD applications, including SaaS ERP 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 6,100 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.

“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. 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 2010 ended January 31, 2010.

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Founded in 1979, QAD has been recognized as a leading provider of enterprise resource planning (ERP) software applications for global manufacturing companies. Today, QAD enterprise applications leverage advances in Internet and enabling technologies to 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.

QAD enterprise applications are focused and optimized for select manufacturing industry segments: automotive, consumer products, electronics, food and beverage, industrial and life sciences.
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