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DELTEK NET REBOUNDS; MUM ON SALE

Kevin Parker, DeltekDeltek returned to profitability on a drop in revenue for the second quarter ended June 30. But the big question, the status of the company now that it has reportedly put itself up for sale, was not touched during this week's earnings webcast. Probably, the analysts had been told no comment would be made, or they knew better, but no questions were asked about that.
And perhaps the possible sale is the reason the presentation seemed more bare than normal. Net income for the most recently ended quarter was $7.2 million compared to a loss of $3 million a year earlier. Revenue of $86 million was down 2.3 percent from the year earlier $88 million. The top-line stemmed from a sharp decline in consulting service and other revenue, which fell to $16 million, of 33 percent compared to $23.8 million in last year's corresponding quarter. Maybe I missed it, but that point did to get a long explanation. Product revenue of $28.4 million was up 15 percent over last year. Maintenance revenue rose 5 percent to $41.5 million. CEO Kevin Parker talked a lot about Maconomy, citing a key win for the project accounting package in the CPA market, and the GovCon business, but not a lot about professional services and I don't think I heard the works architectural and engineering market, one of its historical strengths. "We delivered a solid quarter with Maconomy products in Europe and the United States," he said. Parker also noted the introduction of SaaS-based versions of Vision and Maconomy during the quarter that are designed to make the functionality of those products available to small and midsize customers. He said early sales were promising but provided no figures.
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