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EUROPEAN DYNAMICS VAR TALKS TO LENDER

In press releases, less often than in financial reports, it's good to read the bottom line. And in a press release about the preliminary results for Qurius, a European Dynamics reseller, was the following that had escaped my glance: "The strong cash position enabled Qurius to meet its debt service obligations for the full year by the end of 2009. Qurius expects to be able to solve the effects of the disappointing fourth quarter performance on the covenants, in a constructive dialogue with its lender."
Now this would probably be less interesting if Sage's largest reseller, MIS Group, hadn't failed last year. But now the shoe is on the other balance sheet. Qurius, which is headquartered in the Netherlands and operates in fewer countries than it used to, was Microsoft's Partner of the Year for 2007 and calls itself Europe's largest Dynamics partner. Last year, the VAR suspended payment on its debt, and then applied proceeds from the sale of a subsidiary to catching up and making advanced payments. It also pulled out of Denmark and Sweden. Preliminary results show 2009 net sales of roughly $160 million, down 7.1 percent from 2008 as measure in euros. The loss is trickier to measure in U.S. terms. The EBIT (no DA) was just under negative $4 million, an 82.8 percent decline from last year's EBIT loss. But that was because the year earlier figures reflected a substantially higher charge for impaired good will than the roughly $2.8 million charge this year. Qurius is also notable for working internationally through the Qurius Global Alliance, of which Tribridge is the only U.S. member listed on the company's Web site.
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