News and Analysis

News and Analysis (15713)

NET@WORK ACQUIRES AXIS

Kelly Hummel, Axis Integrated SolutionsNet@Work has purchased St. Louis, Mo.-based Axis Integrated Solutions, a Sage 300 and SageCRM reseller. Axis CEO and founder Kelly Hummel has been named Sage 300 practice director for New York-based Net@Work. With the addition of the Axis sites, Net@Work has 16 locations. Axis, founded in 2005, sold both Sage 100 and 300 and Intacct financial products. Intacct will be dropped from the line up. Net@Work handles Sage 100/300/500 and X3 and NetSuite. It also handles Dynamics CRM, Infor CRM and Salesforce.

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UXC SIGNS BIG MONEY DEALS

Cris Nicolli, UXCUXC, the Australian company that owns reseller UXC Eclipse, says it has signed a series of contracts for deals exceeding about $73.1 million ($100M Australian). That announcement followed a June 29 trading update in which it said net profit after tax for the year ended June 30 will be the $20 million to $22 million revenue range (Australian) that analysts have postulated. That compares to $15.7 million in earnings for 2014 and $22.7 million for 2013. UXC had about $565 million in revenue for fiscal 2014 so the new deals are significant for a company of its size.

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PROJECT DELAYS HURT EDGEWATER EARNINGS

Shirley Singleton, Edgewater TechnologyEdgewater Technology, which owns Dynamics Fullscope, saw a sharp drop in earnings for the second quarter ended June 30 as customers postponed the start of projects. Edgewater reported net income of $494,000 for the most recently ended period, down 72.3 percent from $1.7 million The bottom line suffered with gross profit dropping to 34.1 percent from 37.3 percent a year ago while operating expenses rose to slightly more than $9 million, an increase of 17 percent from $7.7 million in last year's corresponding period.

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SAGE LIFE NOW SAGE LIVE

Doug LaBahn, SageMaybe someone at Sage read my comment that a maintenance contract for Sage Life would be called Life Support. Anyway, the product is now Sage Live and the company gave a brief view  at the Sage Summit conference now underway. Live has three editions, Essentials, Standard and Premium. Essentials financials for one country; single-country compliance; real-time scoreboard and reporting; "Mobility, Social, and Community" (according to the slide image I saw), a "Success Support Plan"; and two designated users.

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SAGE ORGANIC REVS UP 7.3 PERCENT

Stephen Hare, SageSage says that organic revenue grew by 7.5 percent for the third quarter ended June 30, driven by a 34.2-percent rise in subscription revenue. Sage provided the information in a webcast of a recent trading update for the quarter. In trading updates, European companies do not provide earnings and revenue amounts. Much of the growth came in the United States and France, according to CFO Stephen Hare. However, Hare said, "We have started to see some impact in North America, where we have started to push upgrades and reactivation of Sage 50."

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RANDOM THOUGHTS: QUEEN ELIZABETH

Queen Elizabeth IISomebody at the pool aimed a nasty, critical remark at me last week. I responded, "I've been disliked by a lot better people than you and I'm proud of it." ...  A Detroit man has been running a center that has fowling, a combination of football and bowling. Players try to knock down all 10 pins by throwing a football. I propose a new competition called "fishling", a combination of bowling and fishing. Contestants drink beer between each ball toss and casting of the reel—pretty much emulating real life.

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PRESIDENT'S CLUB LOOKS SMALLER

MicrosoftThe 2015 President's Club for Microsoft Dynamics looks smaller in two ways. First, the decision that businesses could not be selected for both this honor and the Inner Circle decreased numbers. This year, there are 110 and the 2014 list seems to have 190 names from a rough count. Second, in the reseller arena, the P.C. firms are generally smaller than the I.C. resellers. Now, both groups include more than just VARs—for example, Fujitsu. But for the more "pure VARs"—increasingly hard to define, size is the best divider.

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NETSUITE'S SAME—REVS, LOSS RISE

Zach Nelson, NetSuiteThe NetSuite formula has been rising losses and surging revenue and that held true for the second quarter ended June 30. Its loss hit $32.3 million for the most recently ended period, compared to $23.2 million a year earlier. At the same time, the cloud company turned in its twelfth straight quarter with revenue growth of more than 30 percent.

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SAGE SUMMIT ADDS BIG NAMES

Recruiting for sponsors for next week's Sage Summit closed on an up beat. This month, the company added Microsoft as its sole Diamond Sponsor and Deloitte Digital, MasterCard and Salesforce as Platinum sponsors, pushing that group to five members. Overall, that brings the total exhibitors and sponsors to 124, if I did the math correctly, and I had reported there were 114 a year ago. While the total numbers aren't up that much, the number of big players outside of the usual Sage reseller and ISV community look good, much better than last year.

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NETSUITE MAKES COO PRESIDENT

McGeever, NetSuite Some followers might note my May 8 tweet that "The most word chewing heard at NetSuite was about CEO Nelson's crack about when COO Jim McGeever starts running the company". I got doubting looks when I suggested Nelson's statement at SuiteWorld wasn't a joke. However, this week McGeever took the President's job that had been held by Nelson. He also took a seat on the cloud company's board of directors.

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