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Joseph Cowan, EpicorThe Epicor Software story for the year ended September 30 for its ERP business was the story across the software industry. Subscription-based revenue rose by double digits as sales of cloud-based products increased. And during this week's earnings webcast, CEO Joseph Cowan referred to what he called the company's "cloud-first business model" for software. Meanwhile, the company continued chopping its losses, which stem from the interest on the debt incurred when the company was purchased and the old Epicor and Activant were merged under the Epicor name.

It lost $20.8 million for the most recently ended year, down from $32 million in fiscal 2013 and from $55.1 million from its inception in 2011 to September 30 of that year. For 2014, revenue was just under $995 million, an increase of 3.5 percent from $961.7 million the prior year. Overall, company license revenue rose by 8 percent, but total subscription revenue increased only 7 percent, lagging the ERP side where subscription revenue was up 17 percent year-over-year, and total license revenue climbed a very respectable 8 percent. Support revenue rose only 5 percent and I wonder if this is the new pattern in the move to the cloud—support, long the mainstay of many P&Ls, shrinks as product is delivered over the Internet. The license story was also good in the Americas, which the company said led it to an increase of $9.6 million in license revenue. Total ERP revenue for the most recently ended year was $627.9 million, up 5 percent from $598.5 million. ERP license revenue increased by 9 percent. Results continued to be dampened by the Retail Solutions division, which reported a 6-percent drop in revenue.

Last modified on Friday, 19 December 2014
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