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GETTING BETTER SOME OF THE TIME?

The words "cautiously optimistic" came out of the September quarter earnings reports a lot. But the other phrase that popped up several time was "raising our guidance" as many companies exceeded their expectations for the period just ended.  No one is declaring that the economy is moving into a strong new up cycle. But most executives in the accounting software space were either happy or relieved as they ended the quarter.
Zach Nelson, the never-shy CEO of NetSuite, said the September quarter was the company's best ever and exceeded the outlook and he called customer retention the best he's seen in his seven years with NetSuite. POS specialist Radiant Systems exceeded its predictions. Both companies raised their guidance for 2010 as a result. Epicor, which reported earlier, had the second-best quarter in its history as it rode Epicor 9 to strong license sales, beating its guidance for both sales and earnings. Blackbaud saw earnings at the high end of its guidance range, but remained cautious because of the weakness in the nonprofit market. The other trend was the strength in the SaaS business. All SaaS NetSuite is always hot on that topic, but Nelson said the company is starting to pick up a lot of Dynamics GP converts. Blackbaud CEO Marc Chardon reported that while bookings for software licenses were flat, bookings for his company's online products were up 50 percent. And Radiant Systems said it increased its SaaS sales team from about five to seven reps, to around 20 this year. I wonder if Radiant's CEO John Heyman and Nelson got a chance to celebrate with a drink together since both spoke on their conference calls from Prague.
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