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EXACT MANUFACTURING REVS DROP Featured

Erik van der Meijden, ExactResults for Exact's Specialized Solutions were weak last year, the company said in this week's financial results. But despite the downturn in results for the three American products – Job Boss, Macola, Max – it looks like those products have a secure future. This is not based on their prospects as much as it is for their ability to help Exact Online. "The manufacturing entities can help ExactOnline in the U.S.," CEO Erik van der Meijden said in this week's earnings webcast.

He also noted that the company's fast-growing cloud business is being funding by the results at the Specialized and Business Solutions. Despite the weakness, van der Meijden said that sales of Macola picked up after the July hiring of a new managing director. And for the first time in years, channel sales grew. "We saw strong trend in the second half that the channel picked up again," he said. For 2013 and the fourth quarter results were not great, but they represented a continuing improvement since van der Meijden was hired in 2012. In every category results on an operational basis – the equivalent of same store sales – was better than total company results. Net income for the fourth quarter was about $15.8 million, more than double the prior year's corresponding period. Revenue was about $76.7 million, up 1 percent over a year earlier and up 3.3 percent operationally. The bottom line for 2013 was about $43.5 million, 70.4 percent higher than 2012 with revenue dropping to roughly $291 million, off 1.8 percent, but off .4 percent operationally. Results were similar with Specialized Solutions, which were hurt by the weakening dollar. Revenue for the year was about $26.6 million, down 5.8 percent, but off only 1.4 percent operationally. Exact does expect Specialized Solutions revenue to rebound, but to grow only in single digits.

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