Accounting News


SAP EYES SMALL BUSINESS SAP, which broke into the mid-market in the last three years with its Business One software, is forming a team to explore products for very small companies.

Late in 2005, the German company began advertising for two positions in its SBS Group, whose goal is to design products for companies with fewer than 30 employees. The openings are for a senior product definition manager and a product manager.


Partner Insights

Sage Software reported revenue of $584.7 million for the year ended September 30, up 13 percent from 2004.

Operating profits rose to $136.6 million, a 22 percent increase over last year. The results were issued as part of a trading update by Sage Ltd., the British parent. More detailed results will be available with the issuance of the annual report.


Blackbaud, the Charleston, S.C., company that makes nonprofit software, has withdrawn its Financial Edge accounting software from the reselling channel.

The company ended the contracts of 125 resellers at the end of 2005. They can sell Financial Edge until March 31, but with reduced margins. A letter from channel director John Dalzell told the resellers that the company could not get the channel program to scale. Most of Blackbaud's revenue comes from direct sales of its Raisers Edge fundraising software.


Epicor Software has acquired CRS Retail Systems, a Newburgh, N.Y.-based company owned by private investment firm Accel-KKR, for about $121 million in cash.

CRS sells merchandising and POS systems for the retail position and has about 140 customers. Major customers cited include Coach, Barnes & Noble, and Foot Locker. CRS will operate as a separate division, with Kathy Frommer remaining as general manager.


Doug Burgum, who heads Microsoft Business Solutions, sold $8.9 million in stock in November in what was an unusually heavy year of sales for him.

Those proceeds came from the sale of 100,000 common shares in three lots for about $2.7 million. Burgum also exercised options on another 222,222 shares at $23.3719 each, for a cost of nearly $5.2 million, and sold them at $28 a share for more than $6.2 million.


FrontRange, which markets the GoldMine and Heat lines, has been purchased by private equity fund Francisco Partners for about $200 million.

The parent company, South African-based FrontRange Ltd., Africa, reported sales of $66.7 million for the 10 months ended April 30, up from $59.4 million a year earlier. Income reached $6.8 million, up 104 percent. Most of the revenue, $43.2 million, came from the Americas, up from $37.1 million. Trading profit of $14.5 million for the Americas was up 92.3 percent.


Kintera, which specializes in online products for the nonprofit market, has raised $13.5 million through a private placement to institutional investors.

The company sold 4.5 million shares of common stock at $3 per share, along with warrants to purchase 1.8 million shares at an exercise price of $3.50 per share. Kintera lost $8.3 million for the third quarter ended September 30, up from $4.5 million in red ink a year earlier. Third-quarter revenue was $12 million, up from $7 million in last year's corresponding period.


MYOB, a company that took its name from the low-cost accounting software sold in the U.S., has sold its American operations to a management team.

The American products will be marketed by Acclivity, owned by former MYOB managers Tom Nash and Scott Davison. Chris Lee, who founded the company as TeleWare in 1982, will remain a director of Australia-based MYOB Ltd. In the U.S., the main line is BusinessEssentials, which includes accounting applications for PCs and Macs. U.S. sales for 2005 were expected to be about $4.1 million with an EBITDA loss.


Serenic Corp., which markets the Serenic Navigator nonprofit accounting line for the Navision market, has hired a new chief financial officer to replace one who lasted less than three months.

The new CFO, Paul D. Johnston, was hired effective November to replace Michael Frost, who got the job on August 1. The company said Frost resigned to pursue other interests.

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