SoftBrands Revenue Climbs, but Manufacturing Business Slips

The enterprise software provider rides its stronger ties to SAP to an increase in sales, but lags year-earlier performance for its manufacturing-specific products.


Posted on May 09, 2008

SoftBrands Inc. today reported a healthy rise in sales in its recently completed second fiscal quarter, although revenue from its manufacturing products dropped during the period.

Overall, SoftBrands, which sells enterprise software to manufacturing and hospitality industry customers, saw revenue climb more than 10% to $23.7 million during the quarter, ended March 31, 2008. That compared with revenue of $21.4 million for the same quarter a year ago.

SoftBrands experienced a significant jump in revenue from software licenses, mostly from sales of its hospitality-related products. Software license revenue grew 39.7% to $4 million. SoftBrands’ maintenance and support revenues were essentially flat.

Despite the overall revenue increase, SoftBrands reported a $798,000 operating loss for the quarter, which was a 55.5% improvement over the $1.8 million operating loss reported in the second quarter last year.

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