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INFOR 1Q: STRONG REVS, BUT Featured

Charles Phillips, InforInfor reported a 9.5-percent increase in revenue for the first quarter ended July 31. But the software company this week reported a loss of $25.4 million, compared to net income of $57.5 million in last year's corresponding period. A big factor in this was currency change.

A year ago, there was other income of $37.2 million, primarily reflecting currency, but that swung to a net expense of $15 million. And there was a 16.2-percent rise in operating expenses. The good news is we've gotten far enough away from Infor's change in its fiscal year, that comparisons are based on really comparable periods, instead of dealing with a truncated y ear. Overall, revenue for the most recently ended period rose to $701.6 million from $640.3 million. SAAS revenue had a lot to do with that, coming in at $90.1 million in the quarter, up 128.1 percent from $39.5 million a year earlier. CEO Charles Philips noted during this week's earnings call that about 18 percent of license revenue was sold by channel, which also racked up 29 percent of new bookings for the current quarter. Channel sales remain predominately non-cloud. Phillips said Infor is gaining marketshare because of the cloud and noted 31 percent of the cloud business is coming from existing customers, with the rest coming from new buyers. Consulting revenue rose to $183.1 million, an increase of 125.4 percent from $162.7 million. Operating expenses were $623.9 million, compared to $537 million, but since that includes cost of the various components of revenue, it's not operating expenses in the way we often think about them. R&D spending was up 11 percent as were G&A expenses, not too far out of line with the change in revenue.

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