Epicor closed 4Q06 and the fiscal year in milestone fashion, with revenue for the quarter topping $100M. Net license revenue was up 26% from 4Q05 to $32.3M. Year-end revenue came in at just more than $384M (up from $289M in 2005). The company added 750 new customers (228 in the fourth quarter alone) and reported $99M in license revenue alone for the year (up from $77M a year before). In fact, the top 10 deals for 4Q came in at $300K from sales of the Vantage and Enterprise products. The largest revenue contribution for the quarter came from maintenance at $38.3M ($150M for all of 2006).
Epicor reported winning back just more than 450 accounts for maintenance alone in the year as well. While this is a small number for a company with more than 20,000 customers and specific percentage ranges for the maintenance agreements were not disclosed, maintenance revenue is a valuable metric for midmarket ERP providers. As the competition in this space continues to increase and battles brew over new deals, maintenance revenue continues to be a valuable annuity.
The success of the firm’s acquisition of CRS Retail Systems in late 2005 has been a particularly bright spot. At the time of the acquisition, Epicor had a minimal presence in retail, and there was a tiny cross-sell potential for CRS into the Epicor customer base, too. However, CRS contributed $14.1M in total revenue in 4Q06 and $69.7M total for all of 2006.
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