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RADIANT TURNS IN KILLER QUARTER

Radiant Systems is a little out of the midmarket main stream, but its POS systems (the old Synchronics CounterPoint) are sold by some typical financial software resellers. And maybe its results for the second quarter ended June 30 shows there is something to specialization after all. Net income rose by 81.3 percent, revenue by 22 percent, system sales by 40 percent and according to CEO John Heyman as far as resellers, "We’re north of 20-percent growth in channel business I’m optimistic we can maintain that, but I’m not banking on it."

No wonder he started yesterday's earnings Webcast thanking employees and VARs for their performance. Executives said the strong performance was across all products and geographies and in both direct and indirect sales. For the record, net income in the most recently ended period was $5.8 million up from $3.2 million a year ago. Meanwhile, revenue rose to $87 million, compared to last year's $71.1 million. And the revenue increase was most of the story behind rising profits as gross margins fell to 47 percent, down from 48.4 percent in last year's corresponding period. Behind that was a 41-percent rise in system revenue, which ended the quarter at $42.1 million, an increase from $29.8 million.

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