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EPICOR TO PRESS HARDER IN DISTRIBUTION MARKET

Michael PietriniEpicor, which gets about 40 percent of its revenue from sales to manufacturers, believes there’s a big opportunity in enlarging its distribution base, which now accounts for only 20 percent of its sales. CFO Michael Pietrini handed out those numbers at the Jefferies 3rd Annual Technology Conference in New York this week.

 

Pietrini says the possibility of a bigger distribution splash stems from sales of Epicor 9, which debuted late in 2008 and which the company said will pick up enough steam that it will produce 80 percent to 90 percent of ERP revenue by 2010. The pitch for the new product has also been that it puts Epicor back in the financials market. He listed the other segments contributing to revenue as retail, 25 percent, and hospitality, 15 percent. "I will contend that the distribution market space is much bigger than the manufacturing market space," he told attendees. Added international finance features have also helped sales of Epicor 9 oversees. Pietrini recounted that there are 14 companies in which Epicor had closed deals this year that it couldn't have won before the new product debuted. Epicor is also working on SaaS versions for manufacturing and distribution. While he said the SaaS offering for manufacturing is best suited for the low end of the business, it's a market Epicor has "somewhat left behind." But Pietrini is optimistic about his company's chances in this arena because "We are starting to see a market for SaaS in the lower end of the manufacture market."
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