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DESPITE 3Q RESULTS, EPICOR CEO UPBEAT

Epicor CEO epicor sounded optimistic yesterday as his company reported its revenue had dropped by 27 percent. Net income also fell sharply for the company’s third quarter ended September 30. Earnings plunged to $356,000 for the recently ended quarter, down from $2.7 million a year ago.

 

Revenue declined to $98.6 million, compared to $135.8 million in last year’s corresponding period. However, in yesterday’s earnings call, Klaus was pointing to a rebound, especially in light of less-than-glowing reports from competitors such as Lawson Software and SAP. He reported that Epicor improved consulting margins in a seasonally slow period. Klaus also noted that maintenance revenue had bottomed in the first and second quarter with the company maintaining a 94-percent maintenance contract retention rate on its ERP side and 100 percent at retail. Meanwhile, the organization won back 129 customers whose maintenance agreements had expired, which represented about $2 million in incremental revenue. Epicor also is seeing continued strong acceptance of Epicor 9, which was launched about a year ago. While Epicor had become principally a supplier of manufacturing software, Epicor 9 has enabled it to compete and win for jobs which are financials only. And the CEO kept up his litany that Epicor is a direct sales organization, contrasting that with competitors that use channels. Klaus, who pounds that theme on these calls, can’t be cheering up the company’s small channel.
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