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CONSULTING DIP DENTS INFOR Featured

Charles Phillips, InforInfor had a good quarter for the period ended October 31, even thought net income of $13.1 million was sharply lower than the $65 million in earnings' reported a year earlier. Revenue rose to $685.6 million for the recently ended second quarter, an increase of 3.6 percent, from $673.2 million. However, consulting revenue dropped to $180.8 million, down 4.1 percent from $188.6 million a year ago. CEO Charles Phillips spelled out the reasons during this week's earnings webcast.

"The business changed pretty dramatically in a short period with more integrated, more complex deals, involving a complex flow instead of just point solutions," he said. The shift meant the company had consultants with the wrong skills and it is providing retraining, among other steps. Complexity also pushed deals into longer closing cycles, stretching out when consulting services are needed and delaying the recognition of revenue. The better news was in license fees and subscription revenue, which rose 15 percent (17.1 percent in constant currencies) to $132.8 million from $115.5 million. SaaS revenue contributed 9.6 points of the increase; license fees, 7.5 points. Much of the increase stemmed from the acquisition of PeopleAnswers in January. Phillips said the company's new suite, coupled with its decision to utilize Amazon datacenters, instead of building its own "has helped a lot" and that Amazon is conducting join seminars with Infor.

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