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RETAIL PULL BACK HURTS INFOR 2Q Featured

Infor has decided to “defocus” on several areas of software with point-of-sale the one area named this week. The comments were made by executives during this week’s webcast for earnings for the second quarter ended October 31.

The decision contributed to a charge for impairment of assets of $37 million taken during the quarter. That included $20.7 million related to customer contracts and relationships and $16.3 million related to acquired technology. CEO Kevin Samuelson noted in terms of the retail pull back, “We may have to return money or  collect money from those customers.” The total amortization of intangible assets and depreciation hit  $103.3 million in the recent quarter, a jump of 78.9 percent from $52.9 million  year ago. The end result was Infor lost $117.7 million in the second quarter compared to net income of $78.9 million a year ago. Revenue fell to $760.7 million for the most recently ended quarter, down from $799.4 million a year earlier. License revenue fell to $57.6 million, a decline of 17 percent from $69.4 million for last year’s corresponding period. Subscription income rose 11.8 percent to $179.4 million from $160.5 million. Product update and support fees also took a hit, falling to $336 million, off 3.8 percent from $348.6 million. Samuelson said the company was happy with subscription revenue and if the market pullbacks had not been undertaken, the category would have had a 15-percent rise in revenue.

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