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EPICOR SLASHES SECOND-QUARTER LOSS Featured

epicorEpicor Software cut its loss for the second quarter ended March 31 to $3.3 million from $12.8 million in last year's corresponding quarter. The company this week reported second-quarter revenue of $242.8 million for the most recently ended period, up 1.8 percent from $238.6 million a year earlier. The revenue side seems a bit anemic, but the company bumped up operating profits by reducing operating expenses by $5 million, combined with increased sales.

Operating income for the quarter was $16.5 million, more than doubled last year's $6.8 million. Of course, most of that went out the door for interest payments on the company's debt. Interest for the most recent period was $21.6 million, down from $22.9 million in fiscal 2014's second quarter. Looking at the relatively small loss and the report the company is being peddled, it's possible that the owner, Apax Partners, figured getting close to break even is a good time to ready its exit. Epicor's cost cutting includes a $1.5 million-restructuring plan approved during the quarter. Revenue got whacked by a decline in sales from the retail solutions segment, which dropped to $32.2 million, down 7.6 percent from $34.8 million. ERP revenue rose to $149.8 million, a 1.5-percent rise from $147.6 million. However, its contribution margin was $50.3 million, an 11 percent increase from $45.2 million a year earlier. Revenue from retail distribution was $60.8 million, an increase of 8.3 percent from $56.1 million.

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