A recent round of earnings reports from mid-market ERP software companies provides a glimpse of the trailing indicators of a weak economy, even as their executives project better quarters in the near term.
Epicor Software on Thursday revealed a weak showing in its third quarter, ended Sept. 30, with revenue falling 27% to $98.6 million, compared with $135.8 million in the prior-year period. The lack of sales hurt the bottom line. Net income totaled $356,000 in the quarter, off 87% from last year’s $2.75 million.
Epicor’s license sales were hit hard in the quarter, dropping 39% to $13.7 million. Consulting revenue slipped 24% to $31.7 million, while sales of “hardware and other,” which mainly affects Epicor’s retail business, cratered, declining 77% to $4.9 million. The one business line that held its own in the third quarter was Epicor’s maintenance stream, which slipped just 4%, but still brought in the lion’s share of sales, at $48.2 million.