"Fresh blood" provided to Epicor revenue growth

The Epicor Software corporation working in Russia under the name of Epicor|Scala, the supplier of the integrated software solutions for the companies of medium business and divisions of large corporations, announced preliminary results of the third financial quarter which came to the end on September 30, 2006.

Total income was 95.7 million dollars that 36.8% more than in the third quarter last year (69.9 million dollars).  At the same time 18.5 million dollars were brought  by the CRS Retail Systems company purchased last year.

George Claus, the president, the CEO and the chairman of the board of Epicor, considers that the company is ready to provide the market with the profile industry corporate solutions using a modern technology platform based on service-oriented architecture of .NET. Among advantages of solutions of Scala he called a uniform point of calculations for services and support and also optimal total ownership cost.

Without a contribution of CRS Retail Systems company the gross income of Epicor grew by 10.3% to 77.2 million dollars. High growth rates of sales led to the fact that income from sale of licenses in the third quarter increased by 37.7% to 23.9 million dollars, in comparison with 17.4 million dollars in the third quarter 2005. Without the deposit CRS which was 3.1 million dollars income from sale of licenses increased by 19.6% to 20.8 million dollars.

Income from provision of services of implementation and consulting in the third quarter continued to grow 2006, having increased by 43.4% to 26.0 million dollars, in comparison with 18.1 million dollars in the third quarter 2005. Without income from division of CRS in 5.3 million dollars, income of consulting services increased by 14.1% and was 20.7 million dollars.

Growth of the direction of technical support in the third quarter was 2006 13.1%, income of this direction is equal in absolute expression to 38.0 million dollars, in comparison with 33.6 million dollars in the third quarter 2005. Without the deposit CRS of 2.8 million dollars, income from services in maintenance grows the eleventh quarter in a row and was 35.2 million dollars that corresponds to 4.7% of growth.

Income from the equipment and other income were 7.8 million dollars, instead of 0.9 million dollars in the third quarter last year. The contribution CRS to income from the equipment and other income in the third quarter was 2006 7.3 million dollars.

The company raised the forecast of the financial performance for 2006. The gross income for 2006 is expected in the amount of 381 to 384 million dollars now that meets expectations of a gross income for the fourth quarter 2006 in the range from 101 to 104 million dollars.

According to the forecast for 2007 financial year, the general growth of a full-year income will make from 9% to 11%. The company management is convinced that the company locates sufficient organizational and operational infrastructure for further increasing business.

The representative office of Epicor Software Corporation in Russia and the CIS, Epicor|Scala [1] (file), also showed good results. Revenue growth of the company in the third quarter in comparison with the same period of previous year was 2006 25%, and the forecast of annual growth makes 35% today. At the same time 25% of income are the share of licenses, 30% - of consulting services, 40% - of support.

According to Damon O'Nill, the area director of Epicor|Scala, for the last several months   were invested heavily in  a product marketing. The company continues to work in the directions of business, traditional for it, providing to customers of the solution based on the ERP system of iScala. Besides, the growing interest in rather new solutions of Epicor|Scala in the field of automation of project business of Epicor for Service Enterprises and also a spetsilizirovanny payroll system for the large distributed Advanced Payrol companies is noticeable.

Let's remind that the Scala system was for the first time presented at the market by the CIS in 1991, offering software tools and services in business management, finance and production in the territory of the CIS and Eastern Europe. Since 2004 the company became a part of Epicor corporation, developer of the integrated systems of the class ERP, CRM and SCM for mid-scale businesses. Acquisition in December, 2005 of CRS Retail Systems company strengthened positions of the international corporation. And spring of 2006 the company issued the integration Service Connect platform implemented on the basis of web technologies within the concept of SOA.