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VENDOR RESULTS PRODUCE OPTIMISM

Whether they made money or lost money, most companies reporting financial results for the June period expressed some confidence that economic conditions have improved. And businesses are starting to hire, although cautiously, as license revenue generally increased. At Epicor, CEO George Klaus said a large part of the sales force was on track to exceed plan.
For most companies, the area that remained the weakest was service and consulting revenue. That's because these sources depend on prior sales and most companies reported that the weak sales in previous periods meant fewer installations requiring consulting services. For example, Deltek saw a 35-percent decline in consulting revenue. But because of improving conditions has led Blackbaud to start hired in professional services to tackle a record backlog along with adding to the sales force. The move was described as likely adding "a few dozen billable resources". Companies have also started restoring some benefits. Payroll giant Automatic Data Processing began offering raises to management after freezing them in 2009 and financial services vendor Morningstar resumed bonsuses and part of the company 401(k) match..
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