In the half, the higher-margin K3 products represented 23 percent of sales, compared to 22 percent for the first half of fiscal 2015. "We remain confident about the potential to exploit our own IP and expect to see continuing progress in our growth strategy together with rising channel partner sales and hosting," chairman Lars-Olof Norell said in a prepared statement. "A key part of our growth plans for K3 is to drive sales of our own IP software products, particularly our retail product on Microsoft Dynamics AX." Revenue from the retail business was up not quite half a percent to roughly $28.9 million while manufacturing and distribution income of approximately $31.9 million rose 2.4 percent. K3 also handles Dynamics NAV, Sage and Syspro. The company said Syspro maintenance and support renewals remained at 98 percent and contributed significantly to recurring income of approximately $19.1 million. K3 said both NAV and AX closed the year with a strong pipeline. Sage service levels were lower because of the low number of deals in the first four month, but K3 said the increase in Sage prospects was encouraging.