Latest CRM Software Industry News

Bozeman, MONT. (January 31, 2007) — RightNow(R) Technologies, Inc. (NASDAQ: RNOW), today announced results for the fourth quarter and year ended December 31, 2006. Fourth quarter revenue was $28.8 million, and full year revenue was $110.4 million, representing increases of 17 percent and 27 percent over the comparable 2005 periods, respectively.

The net loss in the fourth quarter of 2006 was $(2.3) million or $(0.07) per share, compared to net income of $3.0 million, or $0.09 per diluted share, in the fourth quarter of 2005. Fourth quarter 2006 non-GAAP net loss per share was $(0.04) which excludes stock-based compensation charges of $1.1 million. The net loss for the full year 2006 was $(5.0) million or $(0.16) per share, compared to net income of $7.7 million or $0.23 per diluted share for the full year 2005. Full year 2006 non-GAAP net loss per share was $(0.01) which excludes stock-based compensation of $4.6 million.

RightNow added more than 75 new customers in the fourth quarter and more than 500 new customers for the year. New, renewed and expanded customer relationships during the fourth quarter of 2006 included the AICPA, Ceridian Corporation, Nikon, Restoration Hardware, Samsung Electronics America, Sovereign Bank, SunRocket, UCLA, and the U.S. Census Bureau.

“Overall, 2006 was a strong year,” stated Greg Gianforte, founder and CEO. “We grew bookings 50% and cash flow from operations more than 80%. Our products served 1 billion customer interactions during the year, providing the backbone for high customer satisfaction and tangible cost savings. We’re pleased to announce that our first customers are now live on RightNow 8.” Susan Carstensen, CFO, added, “As noted in our preliminary announcement, we are seeing an accelerating shift toward recurring revenue agreements in our customers’ buying decisions. Beginning in 2007, we are essentially eliminating perpetual revenue from our business model by taking them off our product price list. For those customers in our pipeline and our existing customers that prefer perpetual licenses, we will work to structure ratable arrangements. While this model change reduces our overall revenue and earnings guidance for 2007, we still expect to drive approximately 40% growth in recurring revenue and 30% growth in cash from operations.”

“Change that aligns us with our customers’ preferences is good for our business” said Gianforte. “We expect to return to profitability in 2008 and to create greater shareholder value as a result of these changes. We are excited about the opportunities in front of us and look forward to another successful year in 2007.”

Guidance
For the full year 2007, the Company expects revenue in the range of $116 to $120 million, composed of 40 percent growth in recurring revenue and 15 percent growth in professional services revenue. The Company’s previous guidance for perpetual revenue was approximately $25 million for 2007. Given the business model changes, the Company now expects this business to produce approximately $2 million in revenue in 2007.
The net loss per share for the full year 2007 is expected to be in the range of $(0.56) to $(0.64). Non-GAAP net loss per share, which excludes stock-based compensation, is expected to be in the range of $(0.36) to $(0.44). This compares with the Company’s previous guidance for non-GAAP net income per share was $0.30 to $0.35, with the vast majority of the earnings change resulting from the substantial decline of perpetual revenue.
Cash from operations for the full year 2007 is expected to be in the range of $32.5 to $37.5 million.
For the first quarter of 2007, revenue is anticipated to be in the range of $24 to $25 million. The first quarter net loss per share is expected to be in the range of $(0.23) to $(0.25). Non-GAAP net loss per share, which excludes stock-based compensation, is expected to be in the range of $(0.19) to $(0.21).
Quarterly Conference Call
RightNow Technologies will discuss its quarterly results via teleconference at 4:30 p.m. (ET)/2:30 p.m. (MT) today, January 31, 2007. To access the call, please dial (877) 502-9272, or outside the U.S. (913) 981-5581, at least five minutes prior to the start time. An audio webcast of the call will also be available at www.shareholder.com/rnow/medialist.cfm. A replay of today’s conference call will be available on the company Web site at www.shareholder.com/rnow/, under the Investor Webcasts menu, from 5:30 p.m. (MT) on January 31, 2007 until 10:00 p.m. (MT) February 14, 2007. You may also access a replay of today’s call by dialing (719) 457-0820 or (888) 203-1112 with the replay passcode 7121442.

For the full report and complete SEC filing information and details please visit:
RightNow Technologies Q406 complete SEC details

Bozeman, MONT. (January 30, 2007) — RightNow(R) Technologies (NASDAQ: RNOW) announced it will be presenting at the following financial conferences:

Thomas Weisel Partners Technology Conference 2007 in San Francisco, CA on Tuesday February 6, 2007 at 7:25 p.m. ET
Deutsche Bank Small Cap Growth Conference on Monday February 12, 2007 at 11:00 a.m. ET
Goldman Sachs Technology Investment Symposium 2007 in Las Vegas, NV on Wednesday February 28, 2007 at 2:40 p.m. ET
Webcasts of all presentations will be available on the company’s investor relations website at http://www.shareholder.com/rnow/medialist.cfm.

IRVINE, Calif. And BRACKNELL, United Kingdom — March 7, 2007 — Epicor Software Corporation (NASDAQ: EPIC), a leading provider of enterprise business software solutions for the midmarket and divisions of the Global 1000, today announced  John Heathcoat and Co. Ltd, one of the UK’s leading precision fabric engineers, has selected the Epicor Vantage® enterprise resource planning (ERP) suite to support its continued growth needs.  Widely known for its capability to enable manufacturers to maximize operational efficiency, Epicor’s manufacturing solution continues to build momentum with very strong double digit growth in UK sales over the past year.

With an international reputation for innovation and quality, John Heathcoat and Co. requires clear visibility of the manufacturing process across the organization, which they were not achieving with their previous enterprise applications.  The company began the search for an ERP solution that would have clearer production line visibility, better stock control and more accurate delivery date quotations that would also be able to develop with them into the company’s future.

“As one of the major players in the midmarket ERP industry, we invited Epicor to be a candidate in the selection process,” said Chris Constable, IT Manager for John Heathcoat and Co.  “Epicor took the time to understand our business processes and translated that into what the Epicor solution would provide. Ultimately, Epicor had the best solution to fit our business needs.”

“John Heathcoat and Co. found that all areas of their business were covered by our solution,” says Anthony von Bergen, Regional Director of Epicor in the UK.  “We are delighted to help them increase efficiency and reduce their information systems costs as our solutions are optimized for rapid installation and low operating costs.”

Epicor has won the confidence of thousands of customers around the world that have adopted its enterprise solutions to meet business challenges.  Epicor enables the whole manufacturing process to be real-time and paperless.  It helps streamline the order cycle and enables enterprises to maximize operational efficiency, minimize costs and improve profitability.

“Epicor was truly a better overall fit for our needs as a company,” Constable added, “Many of the features included in the core solution, we could have only gotten as expensive ‘bolt-ons’ from other suppliers.”
 

IRVINE, Calif., February 26, 2007 — The Technology Council of Southern California has named George Klaus, chairman and chief executive officer of Epicor Software Corporation (NASDAQ: EPIC), a leading provider of enterprise business software solutions for the midmarket and divisions of the Global 1000, as a finalist for “CEO of the Year” in its 2007 Technology Industry Awards.  Klaus is a previous Technology Industry award recipient, named “CEO of the Year” in 2004.

The Technology Industry Awards, now in its 13th year, recognize industry leaders and companies that have made extraordinary contributions to the growth of Southern California as a center for technological innovation.  The 2007 awards will be presented during a gala dinner ceremony at the historic Millennium Biltmore Hotel in Los Angeles on March 7, 2007.

Event Details

Title:                2007 Technology Industry Awards

Date:               Wednesday, March 7, 2007
Time:               6:00 p.m. – 9:00 p.m. Pacific time

Location:         Millennium Biltmore Hotel, Los Angeles

IRVINE, Calif. and NEWBURGH, N.Y. — February 12, 2007 — Epicor|CRS, the Retail Solutions Division of Epicor Software Corporation (NASDAQ: EPIC) – a leading provider of enterprise business software solutions to the midmarket and Global 1000 – today announced that Claire’s Stores Inc. (NYSE: CLE), the leading specialty retailer of value priced fashion accessories and costume jewelry, has selected Epicor’s retail store management solutions to help manage over 3,000 Claire’s stores worldwide.

Claire’s Stores has gone live with its first store in the United Kingdom, beginning the roll-out of its global deployment of the fully integrated Epicor CRS Retail suite which includes RetailStore 3.0 and RetailStore Central.  The comprehensive Epicor|CRS solution supports a variety of in-store functions, including serving the customer at the point-of-sale (POS), promotional events, returns management, inventory look-up and time and attendance.

“We were impressed with the flexibility of the Epicor|CRS solution – we were able to implement business processes unique to Claire’s, so that the system reflects our own corporate culture,” said Keith Pickens, CIO of Claire’s Stores.  “With Epicor|CRS we now have scalable solutions that address key areas of our retail operations, so that we can better manage our stores and provide our associates with the best tools to deliver excellent customer service.

“The RetailStore Central module was particularly important to us, enabling us to seamlessly manage store system configurations worldwide.  Additionally, Epicor|CRS’ extensive global footprint and world-class support structure were critical factors in our decision making process.”
RetailStore 3.0 provides POS software and a full complement of back-office applications designed to handle all transactions, processes and workflow in a retail store environment.  Developed on the Microsoft .NET Framework, RetailStore 3.0 integrates seamlessly with MobileStore, RetailStore Central and ReturnsManagement to deliver additional innovative store management tools and functionalities.

“The addition of Claire’s Stores as a customer is an excellent affirmation of our industry-leading business solutions for specialty retail,” said Kathy Frommer, senior vice president and general manager of Epicor|CRS.  “This competitive win is also an affirmation of our ability to provide and support a global solution for one of the world’s largest providers of jewelry and accessories for the teen market, and positions us well to continue to expand the breadth and reach of our offerings in the US and abroad.

“We are delighted that Claire’s Stores has selected our suite of products,” Frommer continued.  “Our solutions are a perfect match for Claire’s Stores, which is an innovative retailer and market leader.  Our open-standards-based technology solutions combined with our extensive global support structure will enable us to deploy our solutions quickly, so that Claire’s Stores can start benefiting from the value of real-time access to timely information – whether at the POS, back office, headquarters, or anywhere in a store with a mobile device.” 

RSA® CONFERENCE 2007/San Francisco, CA – February 6, 2007 – Epicor|CRS, the Retail Solutions Division of Epicor Software Corporation (NASDAQ: EPIC), a leading provider of enterprise business software solutions to the midmarket and Global 1000, and RSA, The Security Division of EMC (NYSE: EMC), today announced a strategic technology alliance to provide key management capabilities, based on RSA® Key Manager software within the industry-leading CRS RetailStore™ point-of-sale solution that will enable joint-customers to quickly reduce the complexities in encryption deployments.

RSA Key Manager is a stand-alone key lifecycle management offering that is engineered to enable businesses to control encryption keys effectively by providing centralized, secure and simplified administration for all applications.

Epicor|CRS will be the first retail solution vendor to certify its solutions through the RSA Key Manager Partner Program – an extension of the RSA Secured® Partner Program.  The RSA Key Manager program is supported by professional services and systems integration professionals and allows organizations to certify the interoperability of solutions with RSA Key Manager software.  Epicor|CRS provides software and services to more than 50,000 stores across 140 of today’s top specialty retailers.

Under the technology alliance, RSA Key Manager software will soon be integrated with Epicor|CRS software to enable the firm’s retail customers to quickly enable key management capabilities and centralize the provisioning and lifecycle management of encryption keys.  RSA Key Manager will make data encrypted by Epicor|CRS available to other RSA Key Manager applications throughout the enterprise.  RSA Key Manager software centrally manages symmetric encryption keys used in enterprise applications, and retires compromised or lost keys.  The technology can assist retailers in providing complete data protection throughout the data lifecycle, and in meeting the PCI Data Security Standard (PCI DSS) guidelines for data security.  The PCI standard outlines best practices for credit card data that is stored, processed, or transmitted.  Major credit card issuers, including Visa, MasterCard, American Express, Diners Club, and Discover, jointly developed the PCI standard and most merchants are pursuing compliance with it.

“Within the retail industry, enterprise data protection continues to be a critical factor in securing sensitive consumer, employee and partner information.  We’re working to accelerate business objectives by implementing key management and encryption technology to preserve existing data flows and business processes,” said Rick Welch, Vice President & General Manager, Data Security Solutions at RSA, The Security Division of EMC.  “We are excited to be working with Epicor|CRS to reduce the complexity in retail IT environments where heterogeneous applications and platforms exist.  This capability – to protect at the point of entry – helps ensure that information will be both properly secured and fully accessible when needed at any point in its lifecycle.”

 “Epicor|CRS prides itself on moving swiftly to respond to market needs and in incorporating best-of-breed technology to meet those needs,” said Nader Nemati, global director of Epicor’s retail and hospitality industry practice.  “Through our innovative technology alliance with RSA, we are pleased to offer our retail customers enterprise data protection that not only complies with industry standards, but provides protection throughout the data lifecycle.”

Epicor|CRS software will be featured at the RSA Partner Pavilion at Booth #1316 at RSA Conference 2007, February 5-9, 2007, at the Moscone Center in San Francisco. RSA’s information-centric security solutions will also be featured at this booth.

More information on RSA’s announcements and related initiatives may be found online at www.rsa.com/rsaconference2007/.

Click here for the entire release with the Balance Sheet, Statement of Operations and Earnings Reconciliations tables in pdf format.

IRVINE, Calif., January 30, 2007 — Epicor Software Corporation (Nasdaq: EPIC), a leading provider of enterprise business software solutions for the midmarket and divisions of the Global 1000, today reported financial results for its fourth quarter and full year ended December 31, 2006. All results should be considered preliminary pending the Company’s filing of its annual report on Form 10-K for the year ended December 31, 2006.

“Record sales in every key area of revenue contribution – software license, consulting, and maintenance – in the fourth quarter, highlighted an excellent 2006 year where we beat the revenue and earnings guidance previously provided on April 3, 2006,” said George Klaus, Epicor chairman and CEO.  “Most importantly, we continued to experience excellent net license revenue (NLR) growth during the fourth quarter, with 26% total NLR growth and 19% organic NLR growth versus last year’s fourth quarter.  This growth is being driven by our ability to consistently add new names to our base of more than 20,000 customers, with 228 new customer wins in the fourth quarter alone and 750 new customers for the year.  New customers are the key to driving strong future growth in professional services and maintenance and support the excellent visibility we have in any given quarter where approximately 80% of our revenue is highly predictable since it is generated from our existing base of customers. 

“We believe our solid double-digit growth in organic software license revenue sets us apart from the overall industry’s predicted organic growth rates of mid to high single digits,” Klaus said.  “Worldwide, our average selling price (ASP) for direct new deals has risen over the past 12 months and our outlook for continued strong software license growth sets the stage for us to continue to outpace industry expectations.  Our pipelines remain stronger than ever, and the quality of the pipeline is continuing to improve, providing even better visibility and increasing the already excellent opportunities we have across our sales organization.

“Our early adoption of Service Oriented Architecture (SOA) and the .NET technology platform, as well as our focused vertical strategy, differentiates Epicor in terms of our ability to deliver a complete, next-generation business solution to mid-market companies and divisions of the Global 1000 virtually anywhere they do business.  We believe that Epicor has a significant competitive advantage, as illustrated by our strong software growth rates and new customer wins, in what is clearly a competitive marketplace.  Superior product functionality, flexibility, ease of use, and the ability to easily integrate and customize are among the hallmarks of Epicor’s business solution offering and we are firmly committed to extending on what we believe is already a significant technology and product lead.”

Total fourth quarter revenues increased 27.8% to a record $104.4 million, compared to $81.7 million in the 2005 fourth quarter.  This represents the first time the Company has exceeded $100 million in quarterly revenue.  Fourth quarter GAAP net income was $6.7 million, or $0.12 per diluted share, compared to $7.9 million, or $0.14 per diluted share in the 2005 fourth quarter.  2005 fourth quarter GAAP earnings benefited from a non-cash income tax benefit of $1.6 million, or $0.03 per diluted share.  The 2006 fourth quarter tax rate was 38.8%, compared to a tax rate of 15.3% in the year-earlier period.  The Company’s actual annual cash tax rate for 2006 was approximately 10%.

2006 fourth quarter non-GAAP earnings were $12.3 million, or $0.21 per diluted share, compared to non-GAAP earnings of $12.1 million, or $0.21 per diluted share, in the 2005 fourth quarter, which also benefited from the lower 15.3% tax rate.  For comparative purposes, fully taxed (39%) 2005 fourth quarter non-GAAP earnings would have been $0.16 per diluted share. 

Excluding total revenue contributions of $14.1 million from CRS Retail Systems Inc. (CRS), which was acquired on December 6, 2005, total 2006 fourth quarter revenues increased 15.5% to $90.2 million, compared to $78.1 million in the year-earlier period, which excludes the partial 2005 fourth quarter revenue contribution from CRS of $3.5 million.  NLR growth was strong, with fourth quarter NLR increasing 26.0% to $32.3 million, compared to $25.7 million in the 2005 fourth quarter. Excluding NLR contribution from CRS of $2.6 million in the 2006 fourth quarter and $0.7 million in the 2005 fourth quarter, NLR increased 19.0% to $29.7 million in the 2006 fourth quarter. Consulting revenue grew strongly in the 2006 fourth quarter to a record $29.3 million, an increase of 44.6% when compared to consulting revenues of $20.2 million in the 2005 fourth quarter. Excluding CRS consulting revenues of $5.1 million in the 2006 fourth quarter and $1.5 million in the 2005 fourth quarter, consulting revenue increased 28.7% to $24.1 million in the 2006 fourth quarter. Maintenance revenue for the 2006 fourth quarter also hit a record high of $38.3 million, growing 12.0% when compared to maintenance revenues of $34.2 million in the 2005 fourth quarter. Excluding contributions from CRS of $3.0 million in the 2006 fourth quarter and $0.8 million in the 2005 fourth quarter, maintenance revenue grew for the 12th consecutive quarter, increasing 5.6% to $35.3 million in the 2006 fourth quarter. Hardware and other revenue for the 2006 fourth quarter was $4.4 million, up from $1.5 million in the prior year’s fourth quarter.  CRS contributed $3.4 million to 2006 fourth quarter hardware and other revenue.

2006 full-year revenues increased 32.7% to a record $384.1 million, compared to $289.4 million in 2005.  2006 full-year GAAP net income was $23.8 million, or $0.42 per diluted share, compared to $52.0 million, or $0.92 per diluted share, in the prior year’s period.  The 2006 annual tax rate was 38.3%, compared to an annual tax rate of 9.7% in 2005.  Additionally, 2005 GAAP net income benefited from a non-cash income tax benefit of $21.5 million, or $0.38 per diluted share. 

2006 full-year non-GAAP earnings were $42.1 million, or $0.74 per diluted share, compared to non-GAAP earnings of $46.3 million, or $0.82 per diluted share, for the 2005 full-year, which also benefited from the lower 9.7% tax rate.  For comparative purposes, fully taxed (39%) 2005 full-year non-GAAP earnings would have been $0.57 per diluted share.

Balance Sheet Summary

The Company’s balance sheet at December 31, 2006 included cash and cash equivalents of $70.2 million, which was bolstered by approximately $12 million in cash flow from operations during the quarter. The Company’s total debt balance as of December 31, 2006 was $99.4 million.

At 2006 fourth quarter-end, net accounts receivable was $84.0 million. Days sales outstanding (DSOs) was 74, up seasonally from 69 in the third quarter 2006.  Working capital increased by $10.8 million to $55.5 million at the end of the 2006 fourth quarter, up from $44.8 million at the end of the 2006 third quarter.

2007 First Quarter and Full-Year Guidance

The Company is confirming its 2007 full-year guidance previously issued on October 25, 2006.  Specifically, total revenues for the 2007 year are expected to be in the range of $420 to $425 million, with software license revenue expected to increase between 13-15% over 2006 full-year software license revenue.  2007 full-year GAAP net income is expected to increase approximately 25% over 2006 full-year GAAP net income.  Non-GAAP earnings per diluted share for the 2007 full-year are expected to be in the range of $0.83 to $0.85.  The Company’s full-year 2007 non-GAAP net income guidance excludes current expectations for full-year amortization of intangible assets of approximately $10.4 million and full-year stock based compensation expense of approximately $7 million, each net of tax.  2007 full-year non-GAAP earnings per share expectations assume a weighted average share count of 58 million shares.  Expected earnings results presume an effective tax rate of approximately 38.5%, with a cash tax provision of approximately 10-11% for the 2007 year.

For the 2007 first quarter, the Company expects revenue in the range of $93 to $95 million. Consistent with past years, the 2007 first quarter guidance includes additional expected expense for the hiring of sales, support and professional services employees to support the Company’s expected growth throughout the year.  Non-GAAP earnings are expected to be $0.15 per diluted share, with GAAP earnings of $0.08 per diluted share.  The Company’s 2007 first quarter non-GAAP earnings guidance excludes current expectations for first quarter amortization of intangible assets of approximately $2.6 million and stock based compensation expense of approximately $1.8 million, each net of tax. 2007 first quarter earnings per share expectations assume a weighted average share count of 57.7 million shares. 

Conference Call Information

The Company will hold an investor and analyst conference call directly following the release after the close of market at 2:00 p.m. PDT.

When:      Tuesday, January 30, 2007
Time:        2:00 p.m. PT
Dial in:     +1 (800) 289-0572 or outside the U.S. +1 (913) 981-5543
Conf ID:  Epicor 2006 Fourth Quarter Earnings Call

On the call, George Klaus, chairman and CEO, Mark Duffell, president and COO, and Michael Piraino, executive vice president and CFO, will review fourth quarter earnings and the Company’s outlook for the 2007 first quarter and full year. Investors and analysts are invited to participate on the call. Please dial in approximately ten minutes prior to start time. A live audio-only webcast of the call will be made available to the public on the Company’s Web site at www.epicor.com/company/investor and will be archived for thirty days following the call on the Company’s Web site.

RSA® CONFERENCE 2007/San Francisco, CA – February 6, 2007 – Epicor|CRS, the Retail Solutions Division of Epicor Software Corporation (NASDAQ: EPIC), a leading provider of enterprise business software solutions to the midmarket and Global 1000, and RSA, The Security Division of EMC (NYSE: EMC), today announced a strategic technology alliance to provide key management capabilities, based on RSA® Key Manager software within the industry-leading CRS RetailStore™ point-of-sale solution that will enable joint-customers to quickly reduce the complexities in encryption deployments.

RSA Key Manager is a stand-alone key lifecycle management offering that is engineered to enable businesses to control encryption keys effectively by providing centralized, secure and simplified administration for all applications.

Epicor|CRS will be the first retail solution vendor to certify its solutions through the RSA Key Manager Partner Program – an extension of the RSA Secured® Partner Program.  The RSA Key Manager program is supported by professional services and systems integration professionals and allows organizations to certify the interoperability of solutions with RSA Key Manager software.  Epicor|CRS provides software and services to more than 50,000 stores across 140 of today’s top specialty retailers.

Under the technology alliance, RSA Key Manager software will soon be integrated with Epicor|CRS software to enable the firm’s retail customers to quickly enable key management capabilities and centralize the provisioning and lifecycle management of encryption keys.  RSA Key Manager will make data encrypted by Epicor|CRS available to other RSA Key Manager applications throughout the enterprise.  RSA Key Manager software centrally manages symmetric encryption keys used in enterprise applications, and retires compromised or lost keys.  The technology can assist retailers in providing complete data protection throughout the data lifecycle, and in meeting the PCI Data Security Standard (PCI DSS) guidelines for data security.  The PCI standard outlines best practices for credit card data that is stored, processed, or transmitted.  Major credit card issuers, including Visa, MasterCard, American Express, Diners Club, and Discover, jointly developed the PCI standard and most merchants are pursuing compliance with it.

“Within the retail industry, enterprise data protection continues to be a critical factor in securing sensitive consumer, employee and partner information.  We’re working to accelerate business objectives by implementing key management and encryption technology to preserve existing data flows and business processes,” said Rick Welch, Vice President & General Manager, Data Security Solutions at RSA, The Security Division of EMC.  “We are excited to be working with Epicor|CRS to reduce the complexity in retail IT environments where heterogeneous applications and platforms exist.  This capability – to protect at the point of entry – helps ensure that information will be both properly secured and fully accessible when needed at any point in its lifecycle.”

 “Epicor|CRS prides itself on moving swiftly to respond to market needs and in incorporating best-of-breed technology to meet those needs,” said Nader Nemati, global director of Epicor’s retail and hospitality industry practice.  “Through our innovative technology alliance with RSA, we are pleased to offer our retail customers enterprise data protection that not only complies with industry standards, but provides protection throughout the data lifecycle.”

Epicor|CRS software will be featured at the RSA Partner Pavilion at Booth #1316 at RSA Conference 2007, February 5-9, 2007, at the Moscone Center in San Francisco. RSA’s information-centric security solutions will also be featured at this booth.

More information on RSA’s announcements and related initiatives may be found online at www.rsa.com/rsaconference2007/.

IRVINE, Calif., January 30, 2007 — Epicor Software Corporation (Nasdaq: EPIC), a leading provider of enterprise business software solutions for the midmarket and divisions of the Global 1000, today reported financial results for its fourth quarter and full year ended December 31, 2006. All results should be considered preliminary pending the Company’s filing of its annual report on Form 10-K for the year ended December 31, 2006.

“Record sales in every key area of revenue contribution – software license, consulting, and maintenance – in the fourth quarter, highlighted an excellent 2006 year where we beat the revenue and earnings guidance previously provided on April 3, 2006,” said George Klaus, Epicor chairman and CEO.  “Most importantly, we continued to experience excellent net license revenue (NLR) growth during the fourth quarter, with 26% total NLR growth and 19% organic NLR growth versus last year’s fourth quarter.  This growth is being driven by our ability to consistently add new names to our base of more than 20,000 customers, with 228 new customer wins in the fourth quarter alone and 750 new customers for the year.  New customers are the key to driving strong future growth in professional services and maintenance and support the excellent visibility we have in any given quarter where approximately 80% of our revenue is highly predictable since it is generated from our existing base of customers. 

“We believe our solid double-digit growth in organic software license revenue sets us apart from the overall industry’s predicted organic growth rates of mid to high single digits,” Klaus said.  “Worldwide, our average selling price (ASP) for direct new deals has risen over the past 12 months and our outlook for continued strong software license growth sets the stage for us to continue to outpace industry expectations.  Our pipelines remain stronger than ever, and the quality of the pipeline is continuing to improve, providing even better visibility and increasing the already excellent opportunities we have across our sales organization.

“Our early adoption of Service Oriented Architecture (SOA) and the .NET technology platform, as well as our focused vertical strategy, differentiates Epicor in terms of our ability to deliver a complete, next-generation business solution to mid-market companies and divisions of the Global 1000 virtually anywhere they do business.  We believe that Epicor has a significant competitive advantage, as illustrated by our strong software growth rates and new customer wins, in what is clearly a competitive marketplace.  Superior product functionality, flexibility, ease of use, and the ability to easily integrate and customize are among the hallmarks of Epicor’s business solution offering and we are firmly committed to extending on what we believe is already a significant technology and product lead.”

Total fourth quarter revenues increased 27.8% to a record $104.4 million, compared to $81.7 million in the 2005 fourth quarter.  This represents the first time the Company has exceeded $100 million in quarterly revenue.  Fourth quarter GAAP net income was $6.7 million, or $0.12 per diluted share, compared to $7.9 million, or $0.14 per diluted share in the 2005 fourth quarter.  2005 fourth quarter GAAP earnings benefited from a non-cash income tax benefit of $1.6 million, or $0.03 per diluted share.  The 2006 fourth quarter tax rate was 38.8%, compared to a tax rate of 15.3% in the year-earlier period.  The Company’s actual annual cash tax rate for 2006 was approximately 10%.

2006 fourth quarter non-GAAP earnings were $12.3 million, or $0.21 per diluted share, compared to non-GAAP earnings of $12.1 million, or $0.21 per diluted share, in the 2005 fourth quarter, which also benefited from the lower 15.3% tax rate.  For comparative purposes, fully taxed (39%) 2005 fourth quarter non-GAAP earnings would have been $0.16 per diluted share. 

Excluding total revenue contributions of $14.1 million from CRS Retail Systems Inc. (CRS), which was acquired on December 6, 2005, total 2006 fourth quarter revenues increased 15.5% to $90.2 million, compared to $78.1 million in the year-earlier period, which excludes the partial 2005 fourth quarter revenue contribution from CRS of $3.5 million.  NLR growth was strong, with fourth quarter NLR increasing 26.0% to $32.3 million, compared to $25.7 million in the 2005 fourth quarter. Excluding NLR contribution from CRS of $2.6 million in the 2006 fourth quarter and $0.7 million in the 2005 fourth quarter, NLR increased 19.0% to $29.7 million in the 2006 fourth quarter. Consulting revenue grew strongly in the 2006 fourth quarter to a record $29.3 million, an increase of 44.6% when compared to consulting revenues of $20.2 million in the 2005 fourth quarter. Excluding CRS consulting revenues of $5.1 million in the 2006 fourth quarter and $1.5 million in the 2005 fourth quarter, consulting revenue increased 28.7% to $24.1 million in the 2006 fourth quarter. Maintenance revenue for the 2006 fourth quarter also hit a record high of $38.3 million, growing 12.0% when compared to maintenance revenues of $34.2 million in the 2005 fourth quarter. Excluding contributions from CRS of $3.0 million in the 2006 fourth quarter and $0.8 million in the 2005 fourth quarter, maintenance revenue grew for the 12th consecutive quarter, increasing 5.6% to $35.3 million in the 2006 fourth quarter. Hardware and other revenue for the 2006 fourth quarter was $4.4 million, up from $1.5 million in the prior year’s fourth quarter.  CRS contributed $3.4 million to 2006 fourth quarter hardware and other revenue.

2006 full-year revenues increased 32.7% to a record $384.1 million, compared to $289.4 million in 2005.  2006 full-year GAAP net income was $23.8 million, or $0.42 per diluted share, compared to $52.0 million, or $0.92 per diluted share, in the prior year’s period.  The 2006 annual tax rate was 38.3%, compared to an annual tax rate of 9.7% in 2005.  Additionally, 2005 GAAP net income benefited from a non-cash income tax benefit of $21.5 million, or $0.38 per diluted share. 

2006 full-year non-GAAP earnings were $42.1 million, or $0.74 per diluted share, compared to non-GAAP earnings of $46.3 million, or $0.82 per diluted share, for the 2005 full-year, which also benefited from the lower 9.7% tax rate.  For comparative purposes, fully taxed (39%) 2005 full-year non-GAAP earnings would have been $0.57 per diluted share.

Balance Sheet Summary

The Company’s balance sheet at December 31, 2006 included cash and cash equivalents of $70.2 million, which was bolstered by approximately $12 million in cash flow from operations during the quarter. The Company’s total debt balance as of December 31, 2006 was $99.4 million.

At 2006 fourth quarter-end, net accounts receivable was $84.0 million. Days sales outstanding (DSOs) was 74, up seasonally from 69 in the third quarter 2006.  Working capital increased by $10.8 million to $55.5 million at the end of the 2006 fourth quarter, up from $44.8 million at the end of the 2006 third quarter.

2007 First Quarter and Full-Year Guidance

The Company is confirming its 2007 full-year guidance previously issued on October 25, 2006.  Specifically, total revenues for the 2007 year are expected to be in the range of $420 to $425 million, with software license revenue expected to increase between 13-15% over 2006 full-year software license revenue.  2007 full-year GAAP net income is expected to increase approximately 25% over 2006 full-year GAAP net income.  Non-GAAP earnings per diluted share for the 2007 full-year are expected to be in the range of $0.83 to $0.85.  The Company’s full-year 2007 non-GAAP net income guidance excludes current expectations for full-year amortization of intangible assets of approximately $10.4 million and full-year stock based compensation expense of approximately $7 million, each net of tax.  2007 full-year non-GAAP earnings per share expectations assume a weighted average share count of 58 million shares.  Expected earnings results presume an effective tax rate of approximately 38.5%, with a cash tax provision of approximately 10-11% for the 2007 year.

For the 2007 first quarter, the Company expects revenue in the range of $93 to $95 million. Consistent with past years, the 2007 first quarter guidance includes additional expected expense for the hiring of sales, support and professional services employees to support the Company’s expected growth throughout the year.  Non-GAAP earnings are expected to be $0.15 per diluted share, with GAAP earnings of $0.08 per diluted share.  The Company’s 2007 first quarter non-GAAP earnings guidance excludes current expectations for first quarter amortization of intangible assets of approximately $2.6 million and stock based compensation expense of approximately $1.8 million, each net of tax. 2007 first quarter earnings per share expectations assume a weighted average share count of 57.7 million shares. 

Conference Call Information

The Company will hold an investor and analyst conference call directly following the release after the close of market at 2:00 p.m. PDT.

When:      Tuesday, January 30, 2007
Time:        2:00 p.m. PT
Dial in:     +1 (800) 289-0572 or outside the U.S. +1 (913) 981-5543
Conf ID:  Epicor 2006 Fourth Quarter Earnings Call

On the call, George Klaus, chairman and CEO, Mark Duffell, president and COO, and Michael Piraino, executive vice president and CFO, will review fourth quarter earnings and the Company’s outlook for the 2007 first quarter and full year. Investors and analysts are invited to participate on the call. Please dial in approximately ten minutes prior to start time. A live audio-only webcast of the call will be made available to the public on the Company’s Web site at www.epicor.com/company/investor and will be archived for thirty days following the call on the Company’s Web site.

IRVINE, Calif., January 29, 2007 — Epicor Software Corporation (NASDAQ: EPIC), a leading provider of enterprise business software solutions for the midmarket and divisions of the Global 1000, today announced the availability of Epicor iScala 2.3 – the latest release of the company’s tightly integrated end-to-end enterprise resource planning (ERP), customer relationship management (CRM) and supply chain management (SCM) solution. 

Global corporations and large local and regional companies worldwide in the hospitality, distribution, industrial machinery, pharmaceutical and consumer packaged goods industries rely on Epicor iScala.  Significant attention to international management reporting and cross-border trading requirements make Epicor iScala an ideal total business solution for multi-company, global deployments.  Featuring improved security and control, Epicor iScala 2.3 empowers companies to directly address corporate governance, centralization and global deployment issues head-on – ultimately enabling them to achieve operational excellence.  The comprehensive application suite provides collaborative functionality, country-specific localizations supporting multiple currencies, language and accounting regimes in parallel – with a focus on enhanced global capabilities for the Latin America and India markets in this latest release.

According to Gartner, “Organizations must think about their supply chains within a global perspective. Globalization of their markets, increasing competition, off-shoring of suppliers and contract manufacturing, increased network complexity and lengthening supply lines are all contributing to a changing cost basis for making supply decisions.”[1]

The Gartner report further states, “Key to managing your supply chains on a global basis is gaining visibility and collaboration throughout your supply chain business processes.”[1]

SCM Enhancements and 3PL Warehouse Support

Providing enhanced real-time visibility into the global supply chain, the newest release of Epicor iScala delivers significant enhancements to the core Service and Supply Chain capabilities, in addition to expanded functionality focused on the Industrial Machinery and Consumer Packaged Goods (CPG) industries.

The sales, sub-contracted manufacturing and purchase processes have been extended to support working with third party logistics provider (3PL) managed warehouses via Web services, including instructing the 3PL regarding receiving, shipping to sub-contracted manufacturers, counting and sales order shipping.  Essential for CPG organizations – Epicor iScala enables fast, efficient sales, distribution, purchase, planning and production processes, whether hosted in-house or externally with 3PL partners.  Whether transacting electronically or via paper to large channel masters with their own distribution centers, multiple small businesses or a mix of the two, Epicor iScala provides the tools needed to plan and execute business processes with decreased transaction costs and a wealth of management information.

Additionally, Lead Time Management (LTM) performance and usability has been improved by adding user-defined milestones along with many other features. A new Picking Sub-Module enables consolidation of warehouse activities and provides a single picking interface for warehouse staff to use.

Significant Enhancements for Latin America and India

Enhancing global capabilities is a key focus of the new release – specifically for countries within Latin America and India.  Significant changes were made to the Advanced Tax Engine, introduced in the previous release of Epicor iScala, to enhance support for the numerous tax requirements in Latin America and India.  The new release includes enhanced flexibility and usability, including support for user defined tax algorithms and other additions that address specific requirements in Argentina, Brazil, Columbia, Mexico, Uruguay and Venezuela, as well as India.

Industry Leading Technology Promotes Rapid ROI

“We are delivering added value to our customers with the release of iScala 2.3 and specifically providing enriched functionality for service and supply chain organizations,” said Steve Humble, senior director of product marketing for Epicor.  “This latest release further expands and enhances Epicor’s core strengths of global availability and depth and breadth of functionality for key vertical markets.  This solution is designed to help our customers achieve operational excellence by reducing costs while improving usability and process efficiencies.”

Epicor iScala incorporates leading-edge technology capabilities enabling customers to leverage the potential of the globally extended enterprise. The current release builds on proven implementations installed at thousands of sites, which help define Epicor’s services methodology and approach, supporting a rapid return on investment (ROI) for customers.