Estimated reading time: 1 minute, 11 seconds

EPICOR CFO THINKS MARKET HAS BOTTOMED

Michael PietriniNEW YORK - Sales to the manufacturing market appear to have bottomed out and, hopefully, an upturn is not too far away, Epicor's CFO Michael Pietrini told attendees yesterday at the Jefferies 3rd Annual Technology Conference. "It's not getting any worse. As odd as it is, it’s a very encouraging sign," said Pietrini. "We are plodding along at the bottom trying to determine where we are." Pietrini said the mild optimism stems from discussions with the company's field sales force.


The company reported higher-than-expected software license sales in the June quarter, partly because it was able to accelerate some deals that had been scheduled for the current quarter. Perhaps more surprisingly, the typical mix of half of revenue coming from new customers and half from the installed base has become a "strong" mix of 55 percent new customers to 45 percent from existing.

Pietrini explained the reasoning by end users in not buying new software or services as follows: "They already have the ERP or retail application in house. They think, "We’ve lived without it for 90 days; we can live without it for another 30 days." Another factor depressing installed base sales is the lack of growth in seat licenses. Although most companies aren't adding new users, "I believe there is some pent up demand there," Pietrini said. He added that will be very profitable revenue when it comes because there's little added expense with the addition of more seats.

Read 2558 times
Rate this item
(0 votes)

Visit other PMG Sites:

PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.