ACTIVANT NOTES HARD-EARNED PROFIT
Activant, which markets specialized ERP systems, used every tool in the financial arsenal to more than double net income while revenue fell by 12.3 percent for its June quarter. Earnings rose to $9.9 million, from $4.5 million a year earlier. Revenue dropped to $90.2 million from $102.7 million. There was an improvement in gross margins by nearly three-quarters of a percentage point while operating costs fell by 16.8 percent. A repurchase of $25 million face value debt for $19 million helped reduce interest expense by $2.2 million while providing a $4.6 million gain on the debt retirement. An increase of $3.7 million in tax expense ate part of the savings. Activant reaches the hardware and lumber, wholesale distribution and automotive market,s the latter showing a 51.6 drop in revenue. By the way, secured lenders include Lehman Commercial Paper and CIT Group/Equipment Financing. Activant believes other lenders can provide credit as needed.