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DELTEK PUSHES BUSINESS TO VARS

Kevin ParkerIn a good March quarter that followed a poor 2009, Deltek, which makes software for project-based companies, began concentrating on its top accounts and steering smaller ones to its resellers. That was the picture given by CEO Kevin Parker as the Herndon, Va.-based company reported results for its first quarter ended March 31. Although revenue from VARs did not increase as a percentage of revenue, there were more customers.
Resellers are getting more than the sales. During an earnings Webcast, Parker said Deltek is also pushing entry-level services to the partners and said the trend will continue. "We are going to see more of that take place in 2010 and 2011," he commented. Parker said Deltek is sending business from the smallest 3,000 to 4,000 customers to the channel. During the quarter, Deltek saw increased revenue in the government contracting and services market, and in the architectural and engineering and professional services market. The A&E and professional services products took a big hit in 2009. Both the top line and bottom-line saw improvement in the most recently ended quarter. Net income of $4.2 million was 5.7 percent higher than the $2.7 million a year earlier. Deltek's first quarter revenue was $63.8 million, up 2.9 percent from just over $62 million. License revenue of slightly more than $14 million was almost 25 percent higher than $11.2 million in last year's corresponding period. The big increase there was somewhat offset by a drop in consulting services revenue. That income fell to $17,218, a decline of 14.2 percent from $20.1 million for the year ago consulting total. Parker noted because the sale of services follows  a software sale, the category dropped because of last year's slump in license sales. Parker said the company saw expansion in its installed base business as those companies have started to grow and buy more licenses.
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