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MBS LOSSES RISE Operating losses for Microsoft Business Solutions rose to $76 million for the fourth quarter ended June 30, up from a loss of $70 million a year ago. It was the second consecutive quarter of increasing losses.

The company blamed the loss on increased marketing costs. Meanwhile, revenue hit $247 million, an 11.8 percent rise from $222 million a year earlier. MBS sales rose faster than the overall increase in Microsoft revenue.

SCALA PUSHES EPICOR RESULTS

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Last year's acquisition of Scale drove sales up 46 percent and net income up by five times as Epicor Software reported results for the second quarter ended June 30.

Revenue rose to $71 million, up from $48.6 million in last year's corresponding quarter, while net income reached $28.2 million, up sharply from $5.6 million a year earlier. Without the Scala contributions, sales would have risen 10 percent.

SAGE STARTS NEW DIVISION

Sage Software is starting a new sales and service division in Atlanta, to help promote Peachtree and other small business software titles.

It is also seeking a vice president of partner programs, who will deal with the roughly 900 certified consultants who handled Peachtree, Act, Timeslips, and Simply Accounting. The person selected will also oversee the person managing the Sage Software Accountants Network.

EPICOR NAMES DUFFELL

Epicor Software has named Mark Duffell as president and chief operating officer, taking away two of the job titles that have been held by CEO and chairman George Klaus for several years.

Klaus has agreed to remain as CEO through 2007. Dufell, 43, has been executive vice president, worldwide operations since August 2003. In his new job, Duffell receives a base salary of $388,045 and the option to buy 80,000 shares at one cent per share.

EXACT NET DROPS

Exact Software reported a 17 percent drop in income on a 1 percent rise in revenue for the first half ended June 30. The company said planned investments in sales, marketing, and research and development, pushed the operating margin down to 16.2 percent from 22.8 percent a year earlier.

Revenue in North America grew by 4 percent, while operating margins were reduced to 7 percent, because of a one-time charge for bad debts that reduced margins from 14 percent. Worldwide sales fell to $125.8 million from $124.7 million in last year's first half. Net income for the recently ended period fell to $16.5 million, down 17 percent from $19.9 million a year ago.

Accounting Sales Rise in June Quarter

Company
Period Ended June 30
Revenue Change
Income Change
Blackbaud
Q2
20%
60%
Epicor
Q2
46%
404%
Exact
H1
1%
-17%
Microsoft Business Solutions
Q4
11.8%
(+8.8%)
The accounting software vendors that reported earnings for their June periods saw sales rise, although the range of increases was wide. Only Microsoft Business Solutions lost money.
Accounting Sales Rise in June Quarter

Company
Period Ended June 30
Revenue Change
Income Change
Blackbaud
Q2
20%
60%
Epicor
Q2
46%
404%
Exact
H1
1%
-17%
Microsoft Business Solutions
Q4
11.8%
(+8.8%)
The accounting software vendors that reported earnings for their June periods saw sales rise, although the range of increases was wide. Only Microsoft Business Solutions lost money.
Accounting Sales Rise in June Quarter

Company
Period Ended June 30
Revenue Change
Income Change
Blackbaud
Q2
20%
60%
Epicor
Q2
46%
404%
Exact
H1
1%
-17%
Microsoft Business Solutions
Q4
11.8%
(+8.8%)
The accounting software vendors that reported earnings for their June periods saw sales rise, although the range of increases was wide. Only Microsoft Business Solutions lost money.

SERENIC PROFITS RISE

Serenic, which markets non-profit software for the Navision market, reported $188,928 in net income for its first quarter ended May 31, a rebound from a loss of $93,157 in last year's corresponding period.

Sales rose to $1.4 million, up sharply from $31,0,208 last year. This year's results reflect the operations of its Serenic Software subsidiary, acquired July 1, 2004. Last year's results do not reflect Serenic Software. At that time, the parent was known as Vision HMS.

BLACKBAUD EARNINGS SURGE

Blackbaud, the Charleston, S.C. company that markets fundraising and not-for-profit accounting software, reported a 60 percent increase in net income on a 20 percent rise in revenue for the second quarter ended June 30.

Net income reached $8.5 million, up from $3.3 million in last year's corresponding quarter. A big factor was the income tax provision dropped to $896,000 in the recent quarter, down from $3.7 million a year ago. Revenue rose to $42.8 million, up from $35.5 million.

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