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EPICOR INCHES ALONG IN Q3 Featured

Joseph Cowan, EpicorEpicor Software cut significantly into its loss for the third quarter ended June 30. The red ink dropped to $3.3 million for the most recently ended period from $9.7 million a year ago. But the top line budged upward by only 2.1 percent, rising to $246.2 million, up from $241.2 million a year earlier. Don’t blame ERP, which performed decently with revenue of $155.8 million, a rise of 4.3 percent from $149.4 million in last year’s corresponding period. Once again, the Retail Solutions division sucked the life out of the quarter, dropping 10.6 percent to just under $33 million from $36.9 million.

And Retail Solutions hurt income from professional services where revenue dropped to $58.8 million, a decrease of 3.9 percent from $61.1 million. Software and cloud subscriptions rose to $22.5 million in the quarter, moving 9.5-percent higher from $20.5 million a year ago, which strikes me as not that great compared to what other companies are doing. Also increasing was revenue from software support, which hit $108.5 million, moving 3.3 percent ahead of $105.1 million a year earlier. Overall, there were $1.2 million in savings from restructuring, primarily layoffs and moving out of certain facilities, not specified. That compared with $600,000 in restructuring costs a year earlier. Epicor's SEC documents said lower head counts were reflected in development expenses and the cost of professional services. Maybe as the company moves more heavily into the market with Epicor 10 - which became available in April - R&D receives less emphasis as the marketing ramps up. Sales and marketing expenses went up by 4.5 percent while product development costs dropped by 4.3 percent. The company's earnings conference call this week was not very illuminating, except that CEO Joseph Cowan talked about how well the company was doing with the changes he implemented since assuming his job in October and once, again, it didn't do as well as under his predecessor.

 

 

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