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EPICOR 9 DRIVES REVS BUT ...

Epicor rode to the end of 2010 on the back of Epicor 9, which has revitalized the company’s financial software revenue and made it much more channel friendly. But CEO George Klaus this week acknowledged what the numbers show, that the revenue growth hasn’t translated to the bottom line. “It’s not the profitability we would like,” he said during the earnings Webcast.

The company had $4.4 million in net income for the fourth quarter ended December 31, a 34.2-percent drop from $6.7 million in last year’s corresponding period. Fourth-quarter revenue was $117.2 million, up 4.7 percent from $111.9 million a year earlier. So it wasn’t that hot. The company lost just over $6 million for 2010, compared to $1.2 million in red ink for 2009. Revenue for the most recently ended year was $440.3 million up 7.4 percent from $409.6 million the prior year. But given the economy, it’s a really good performance. The real promise is the future. Klaus said Epicor 9 has been shipped to 900 new customers with more than 300 companies now running on it and he expects that to reach 600 companies by July 31. Also promising is that the company’s retail business has started to pick up and there were two license wins in this area of more than $1 million each. To boost its channel, Epicor has signed HCL Technologies, a systems integrator that has about 7.000 consultants. The first group has undergone training and “we expect them to be billable this quarter,” Klaus said. HCL will be used on what he termed “larger international opportunities.”

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