Accounting News


MBS TURNS PROFIT Posting only the second quarterly profit in its five-year history, Microsoft Business Solutions turned in earnings for the year ended June 30 as the fourth quarter showed a strong performance.

Operating income of $24 million for fiscal 2006 was a turnaround from an operating loss of $171 million for the prior year and came despite a 10 percent increase in staff at the unit. Revenue for the most recently completed year was $919 million, up 17 percent from $784 million the prior year. Operating income for the fourth quarter ended June 30 was $38 million, compared to a loss of $84 million a year earlier. Revenue for the most recently ended period was $282 million, up 16 percent from $242 million in last year's fourth quarter.


Partner Insights

George Riviere, who fathered the original MAS 90 accounting line, will leave Sage Software this month after 34 years with the product line.

In 1982, Riviere joined State of the Art, which was purchased by Sage in 1998. He was vice president of research and development and a director of SOTA. Riviere served as vice president of development for Sage Software. He was the second long-time member of the MAS team to leave in the last few months. Sharon Jackman, senior director of product management and involved with the MAS line for several years, left the company in the last three months.


Exact Software, which markets the Macola Progression and eSynergy lines, saw its North America earnings rise by 59 percent on a 23 percent hike in revenue for the half ended June 30.

Earnings before interest and tax for North American operations rose to about $5.4 million for the first half of 2006, compared to $3.5 million a year ago. First-half revenue for the region grew to $38.8 million, up from $31.6 million a year earlier. Revenue for the Dutch company's total operations was $152.5 million, up from $131 million for 2005's first six months.


Representatives of two funds that purchased the majority of Blackbaud's stock in 1999 have resigned their positions as company directors since their operations no longer own Blackbaud stock.

The departed directors are Paul V. Barber, general partner of JMI Equity Fund, and David R. Tunnell, managing director of Hellman & Friedman, who resigned in June. The two funds have liquidated their Blackbaud holdings as of February.


Sage, continuing on a European acquisition binge, has acquired a majority ownership in the Elit Group, a software vendor serving the transport and food distribution industries in France.

The deal is the seventh purchase of a European software company by Sage, the parent to the American Sage Software, in the last two years. Elit, which has a reported 3,000 customers, had a loss of $730,000 on revenue of about $28 million for its year ended June 30, 2005.


Epicor Software reported revenue of $99.5 million for the second quarter ended June 30, up 40.2 percent from $71 million a year earlier as its acquired CRS Retail Systems kicked in with stronger sales than expected.

While net income dropped sharply to $7.1 million for $29.6 million in last year's corresponding quarter, the year-ago figures had been inflated by a non-cash income-tax benefit stemming from the release of a deferred tax valuation allowance. Excluding the CRS contribution, revenue was $71 million with license fees rising about 12.6 percent to $20.7 million. With the inclusion of $3.3 million in CRS license fees, the category grew by 30.6 percent.


Radiant Systems, which markets software for the hospitality and retail industries, reported net income of $12.3 million for the second quarter ended June 30, up 24.2 percent from $9.9 million.

Revenue for the most recently ended period reached $54.9 million, up 39 percent from $39.5 million a year earlier. The results reflect the purchase of Synchronics, the Memphis, Tenn.-based point-of-sale software specialist, and MenuLink Computer Solutions, acquired in October.

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