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Epicor® Reports 2010 Second Quarter Results
Published Aug 8, 2010
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Epicor Software Corporation (NASDAQ: EPIC), a leading provider of enterprise business software solutions for the midmarket and divisions of Global 1000 companies, reported financial results for its second quarter ended June 30, 2010. All results should be considered preliminary pending the Company’s filing of its quarterly report on Form 10-Q.
Epicor chairman, president and CEO George Klaus commented, “The 2010 second quarter was another solid quarter for Epicor with all revenue lines and non-GAAP1 net income growing over the 2009 second quarter. The momentum we are seeing behind Epicor 9 continues and helped drive software license revenue growth of more than 9% over the second quarter of 2009 and free cash flow2 of $11.2 million. Our consulting arm is doing an excellent job with implementations and we now have more than 200 customers running their businesses on Epicor 9, with more than 140 others scheduled to go live throughout the balance of the year. Epicor’s software solutions are making a difference for our customers as evidenced by strong maintenance retention rates, which were 94% for the fourth quarter in a row. We continue to strengthen our competitive position, which we believe is enabling us to take market share throughout the world, and our continued investment in Epicor 9 is paying dividends in sales momentum and customer satisfaction."
Total revenue for the 2010 second quarter was up 9% to $109.2 million, when compared to 2009 second quarter revenue of $100.4 million. The 2010 second quarter GAAP net loss was $1.0 million, or loss of $0.02 per share, compared to a GAAP net loss of $6.7 million, or loss of $0.11 per diluted share in the 2009 second quarter.
Non-GAAP net income for the 2010 second quarter was up 14% to $7.7 million, or $0.13 per diluted share, compared to non-GAAP net income of $6.7 million, or $0.11 per diluted share in the 2009 second quarter.
2010 Second Quarter Revenue by Segment:
2010 second quarter license revenue was $19.2 million, up more than 9% when compared to 2009 second quarter license revenue of $17.5 million. 2010 second quarter maintenance revenue was up modestly to $47.5 million when compared to 2009 second quarter maintenance revenue of $47.3 million. Consulting revenue grew 7% to $34.3 million in the 2010 second quarter, versus 2009 second quarter consulting revenue of $32.1 million. Hardware and other revenue for the 2010 second quarter was $8.2 million, up more than 130% when compared to hardware and other revenue of $3.5 million in the prior year’s second quarter.
Balance Sheet Summary:
The Company’s balance sheet at June 30, 2010, included cash and cash equivalents of $109.4 million. The balance sheet benefited from free cash flow of $11.2 million during the 2010 second quarter, which also enabled the Company to make a discretionary $5.0 million payment to reduce the outstanding balance on its credit facility during the 2010 second quarter. The Company’s total outstanding debt as of June 30, 2010, consists primarily $230 million in aggregate principal amount of the Company’s 2.375% senior convertible notes (less a debt discount of $38.0 million) and $62.5 million in aggregate principal amount under the Company’s credit facility, currently bearing an interest rate of LIBOR plus 4.0%.
At the end of the 2010 second quarter, net accounts receivable was approximately $85.4 million. The Company had solid cash collections of approximately $117.0 million during the 2010 second quarter. Days sales outstanding (DSOs) in the 2010 second quarter were 71, down when compared to 76 in the first quarter of 2010. Total deferred revenue at the end of the 2010 second quarter was $99.4 million.
Business Outlook:
For Epicor’s 2010 third quarter, total revenue is expected to be $106 to $108 million, with non-GAAP earnings per diluted share3 for the 2010 third quarter expected to be $0.13 to $0.15.
For more information:
Orient Planet PR & Marketing Communications
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Posted by
VMD - [Virtual Marketing Department]
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