Epicor's net profits for Q4 drop to US$4.4mn

Thursday, February 17, 2011

US business software solutions provider Epicor (Nasdaq: EPIC) saw its net profits drop 34% year-on-year to US$4.4mn during 4Q10, according to results released by the company.

Epicor said quarterly net profit was impacted by US$1.6mn in restructuring and other costs associated with December's acquisition of Spectrum Human Resource Systems Corporation.

Epicor saw its revenues grow 5% during 4Q10 to US$117mn compared with US$112mn in 4Q09. According to the company, it added more than 560 new customers during the quarter.

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For full 2010, Epicor fell further into the red with losses of US$6.03mn, compared with losses of US$1.24mn reported in 2009. Revenues for 2010 grew to US$440mn compared with US$410mn the previous year.

The company said it is entering the first quarter of 2011 with strong momentum and is off to a good start, as large revenue opportunities that were expected to close in 2010 were extended to the current quarter.

Epicor expects total non-GAAP revenues for Q1 to be between US$110mn and US$113mn. According to the company, its acquisition of Spectrum will contribute US$2.5mn-3mn to total first quarter revenues. Additionally, the company anticipates software license revenue for 1Q11 to be up more than 20% from 1Q10.

Previously, Epicor's commercial director for Latin America and the Caribbean, Ivan Rebolledo, told BNamericas that as of November 2010, Latin America was the fastest-growing global market for the firm.

Colombia was in the top spot for Latin America, and was expected to remain there for 2011, with plans underway to open an Epicor office in the country most likely in 2Q11. The company will also launch a campaign to drive into Chile, Argentina and Brazil, which represent the software firm's newest Latin American markets.

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