A two-point drop in gross margins took a bite out of the bottom line at CDC Software. Net income dropped to $2.1 million for the second quarter ended June 30, a decline of 34.4 percent from $3.1 million a year ago. Revenue fell to $50.5 million, off 3.9 percent from $52.6 million in last year's corresponding period. With expenses holding steady it was the decrease in gross margins to 53 percent, down from 55 percent, that did the damage to earnings. The company, whose lines include Ross ERP and Pivotal CRM, saw one revenue segment grow and that was maintenance income, which grew to $24.9 million, an increase of 4.2 percent from $23.9 million a year earlier.