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INFOR TURNS PROFIT IN 2Q Featured

Charles Phillips, InforInfor, which has been investing heavily in product development, broke into the black for the second quarter ended December 31. The company has been built via aggressive acquisitions and the resulting debt has been a drain on earnings. But with the recent period, things clicked. Net income for the most recently ended period was $63 million, compared to a loss of $22.7 million the prior year. Quarterly revenue was $698.5 million, a rise of 2.3 percent from $682.5 million in last year's corresponding period.

CEO Charles Phillips was feeling good as he noted in this week's earnings call that the primary revenue driver was new product sales and he cited the weakness in software sales at rivals, including SAP. "It looks like their licensed revenue declined yet again," Phillips said. "We believe a similar thing happened at Oracle." That, he said, added up to Infor's gaining market share. It helped the bottom line that interest expense declined to $98.4 million, down 4.8 percent from $103.4 million a year earlier. However, Infor's operating income also grew to $142.5 million, up 26 percent from $113.2 million a year ago. The company stuck to its commitment to increase development with spending in that area rising 12.3 percent while overall operating expenses fell by 2.3 percent from last year's second quarter. Phillips noted his company's ability to garner increasing interest from the national business press and said Infor is launching a new brand advertising campaign that is concentrating on airports. He said consulting revenue dropped because Infor is increasingly turning implementation over to partners, which supports the company's statements it is building its channel.

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