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by Stephanie Neil, MA Editorial Staff Posted on Friday, February 03, 2006 2:47:00 PM Sign Up to receive Daily News Alerts in your E-mail Inbox    | Abstract: | ERP vendor posts robust top-line and bottom-line growth for the year and quarter, but is reviewing its treatment of licensing and maintenance revenue -- which has some analysts questioning company management. |
Mid-market ERP vendor Epicor Software Corp. closed the books on fiscal 2005 with a good news, bad news scenario. Fourth quarter net earnings rose 7% to $10.6 million as sales jumped 15% to $82.6 million; however, the Irvine, CA company revealed that it is conducting an internal audit of its software licensing practices, which means its financial results are considered "preliminary." Epicor said the audit is focused on the way it allocated revenue between software licenses and maintenance fees for the last three years. Although the company said the review isn't expected to unearth accounting irregularities, the revelation had some financial analysts scratching their heads. In a research note distributed Wednesday (February 1) by SG Cowen & Co. LLC, the equity research firm concluded that Epicor's "fundamentals are solid [but] management's on shaky ground." [Click to continue] |
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