Estimated reading time: 1 minute, 1 second

VARS PITCH IN MORE DELTEK REVENUE

Deltek spelled out in its form 10-Q for the first quarter ended March 31 something it didn’t address specifically in its earnings call for the period, the percent of its revenue coming from VARs. But the SEC form shows that for the most recently ended period resellers represented 10 percent of license income, up from 9 percent a year earlier. That would translate into about $1.4 million in sales to the VARs for first quarter compared to roughly $1.01 million a year ago, which is actually a good boost in dollars to the VARs.
Now suppose that Deltek had 50 VARs (there are more listed on the Web site), then the average purchase per VAR was $28,000 for the quarter which annualizes to $112,000 per year. Whatever the exact numbers, it suggests a lot of the new channel isn’t selling much, which fits the evidence.  I suppose you could also reverse engineer the license purchases, apply the margin to get dollars end-users pay and add on a ratio of expected sales of services and get a decent handle on VAR revenue. Given the relatively little money to spread among all those channel members, it’s not surprising that the Deltek channel seems to be coalescing into fewer, but larger VARs.
Read 1947 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.