On the top line, Infor had $671.6 million in revenue, a rise of $657.4 million in the year earlier third quarter. That was a 2.2-percent rise; 7 percent in constant currencies. The biggest movement came in software license fees and subscription revenue which rose to $159 million, an increase of 23 percent from $129.2 million a year earlier. That represented a 27-percent jump in constant currency. The shift to the cloud continued as SaaS revenue rose by 32.9 percent while license revenue dropped by 5.9 percent. The addition of results from GT Nexus added 20.6 points of the increase. "We would expect the trend towards SaaS to continue for a long time," CEO Charles Phillips said in a recent earnings conference call. Infor said demand for cloud products was particularly strong in the Americas. SaaS's other impact is the shift of revenue from maintenance to subscription. Overall, that benefits the company. Phillips said, "We see a dollar of that maintenance revenue convert over to two dollar of SaaS." Cloud bookings growth was strong for Financial Service and GT Nexus, with the latter reporting the best performance in SaaS bookings in its history during the quarter. That was the first full quarter since Infor bought GT Nexus in September. Infor also announced a $25-million investment in Predictix, whose retail analytics products it will resell and utilize in developing Infor CloudSuite Retail.Last modified on Friday, 11 March 2016
CURRENCY CHOPS INFOR 3Q
Currency changes took a bite out of the bottom line for Infor for the third quarter ended January 31. The software company lost $44.2 million for the most recently ended period, compared to net income of $51.3 million a year earlier. A major factor was other expenses of $35.7 million, primarily reflecting currency fluctuations, compared to other income of $53 million in last year's corresponding period.