He invoked the fact that Epicor 9 was doing well selling to new accounts – frequently.

I’m not entirely sure why – but the press didn’t follow up on this theme  - instead mostly asking currency conversion and sales commission type questions.

Epicor didn’t  have much to say about their retail software which apparently has undergone some management changes. At one point in the call they quickly mentioned a reorganization around retail.

They mostly mumbled through any discussion of the retail portions of the call. I had the impression that retail is definitely lagging. They also seem to sell hardware as there was discussion of ($8 million I think) or hardware sales. If I remember correctly the margin was fairly tiny.

They did talk quite a bit about on a 94% maintenance renewal rate — which somewhat puzzled me because the quarterly comparative maintenance revenue seemed pretty flat. One analyst asked about this (about the only good question asked) to which there was a very long Epicor pause. No real answer from Klaus or the panel on this (which I believe included CFO Michael Pietrini) .

They claim well over 100 Epicor 9 are out “on evaluation” but Klaus quips – “don’t quote” him (funny thing to say at an analyst press conference)….

Earnings report said over 140 Epicor 9 are ready to go live this year (as opposed to about 200 already installed).

Early on Epicor hit on three things that they thought were driving sales:

1. More prospects (I took this to mean people looking for niche software)
2. More industries served with Epicor 9
3. More localization – they apparently are able to utilize Epicor 9 in another 20 languages/locales (unsure on this number exactly as I was connecting via cell to the call and not near a computer)

The company made a clear point that sales to existing customers — upgrades, new modules — were relatively flat or down. This is another area they spent little time on –  when questioned by an analyst of course the company expects to convert many of their install base to Epicor 9.

Unfortunately I didn’t get a chance to ask any questions as it seemed to be softball analyst day.

Here’s The Relevant Epicor Questions None Of The Analysts Thought To Ask

A. What percent of sales are channel versus direct (I hear it’s 85% direct with a goal of 60% – which sounds like being a little pregnant. Epicor has a mixed track record here so caveat emptor)

In the past several years Epicor has toyed with a channel, then not using a channel, then going back to using a channel.

My .02 is that companies start going through a channel when they feel they’ve pulled all the low hanging fruit. Channels are expensive because you not only have to cut them in on compensation but you need to manage them, create rules and ultimately deal with infighting that occurs when your market matures.

Epicor touted about 1,000 channel partners on the call. How many of these are castoffs onboarded in the last year?  The ramp up for new partners is slow and tedious. Especially in niche markets with more complex products.

B. Who are your three biggest competitors (because I believe Epicor is probably benefiting from a market shift to niche software)

C. What effect will the new emphasis by Microsoft and Oracle on specialization for their channel have on Epicor’s sales into market niches. (My guess is not a lot immediately but probably in 2 years quite a bit).

That’s all I remember — I was connected by cell while out of the office so some of the specific numbers I’m stating from memory could be a little off but in general this was the tone of the call.

Marketwatch

The major new items were relatively minor. The Q4 product update for 2010 will now be a payroll only update. The MAS 200 SQL product is announced as being on track for end of year release and has just started a beta in early July.

What’s perhaps the most interesting about this version of the roadmap is the detail that Sage includes on their FRX replacement plans.

Of course Sage has announced previously that Alchemex – rebranded Sage ERP MAS Intelligence – is their Microsoft Excel based business reporting tool that’s slated to replace FRX.

There’s more information in the MAS 90 Roadmap which you can view in full here.

http://www.s-consult.com/2010/06/24/whats-new-in-mas-90-4-4-product-update-2/

Posted by Brett Zimmerman.

So far, here are some of the newsworthy items to arise from the demonstration last week:

• User licenses will be named – not concurrent.
• BII is Excel 2007 based (BII is compatible with all versions of Excel, but the new Financial wizard/designer requires Excel 2007)

• Each organization active on Basic Maintenance will receive one user license.
• There was no mention of utilities to convert FRX statements and our guess is that there won’t be one.
• Multi-company consolidations will require a separate purchase of a connector – pricing TBD.
• Data can be read from all modules and all fields – not just the GL as FRX was only able to do.
• BII will initially be available at MAS 90 level 4.4 only. Sage is looking at v4.3 support. We do not think the supported versions will go any earlier than 4.3.

For more information visit  Sage Alchemex Business Insights Intelligence Recorded Demo

This table, available via download only, can be used on any MAS90 or MAS 200 system that is at level 3.71 or higher.

In order to download the tables (none are send by disk) you’ll need to access the Sage Software online site (or have your Sage Business Partner do this for you).

Sage typically updates their payroll tax tables several times during the busy year end time. This is because some states are late to report their changes or have not made up their minds about the rate schedules. Therefore be sure you check back at the Sage site to be sure you have the latest tax update.

After installing the tables be sure you verify they’re operating correctly (proper tax taken out) by manually computing a few checks and comparing the taxes per your computation (use the IRS paper guides to compute the tax manually) to what MAS90 or MAS200 computes.

If you are submitting 1099 data electronically or have New Jersey W2 forms to print – be sure to review the 2009 IRD which Sage also just released. It contains patches to enable MAS 90 and MAS 200 to correctly submit under the two previous situations (1099 filing electronically and NJ W2).

MAS90 and MAS200 2010 Payroll Tax Update and MAS90 and MAS200 2009 IRD

The MAS 90 and MAS 200 Extended Enterprise Edition includes SageCRM as the CRM tool that’s tightly integrated to the accounting and fixed asset portions of the suite.

Unfortunately the three core components (accounting, fixed assets and CRM) all have their own separate knowledgebase. And until now it’s been tough to find the SageCRM knowledgebase unless you know where to look (which you do now!).

Often when errors occur they may be routine. As a first step it’s helpful to have a resource that your technical staff can browse online. While we always recommend that you consult with your Sage Business Partner prior to making any changes to your software or implementing recommended fixes – there are times when your partner may not be available or you are without a partner.

For self-help you can visit the free Sage online knowledgebase.

The Sage Software Online Accpac Knowledgebase contains information about the following products:

• Sage Accpac ERP
• Sage Accpac ePOS
• Sage Accpac Exchange
• Sage Accpac HRMS
• Sage Accpac Insight
• Sage Analytics Products
• Sage BusinessVision
• SageCRM
• Sage PRO ERP
• Sage Accpac Intelligence

Sage Knowledgebase

The Sage Knowledgebase does not require any registration or password to login and perform a search. Each solution is broken down by product category with an index along the side for narrowing your inquiries.

Categories further allow you to break down searches by: Database, Deployment, Edition, Function, Integrated Application, Operating System and Version.

Five different types of documents can be filtered:  Document, Error, FAQ, Hot Fix, How To. If you select the Hot Fix option you’ll be presented with only those solutions that have a downloadable program fix attached to them.  In order to download the Hot Fix you will have to login with a username and password which requires that you setup and account by using your Sage Client ID and password.

SageCRM Users Can Be Notified When Problems Have Been Solved

Perhaps one of the best features of the Accpac knowledgebase (other than you can search  for free without a login) is that you can select to have the system notify you by email if the solution is updated (requires a login with Sage Client ID and password).

This knowledgebase is a supplement to the seprate login that MAS 90 and MAS 200 users would use to search for problems related to their accounting software.

Link: SageCRM Knowledgebase via Schulz Consulting and Telesis Consulting

That’s usually the first thing that is recommended by any technical support person when they try to diagnose a software issue.

Sage issues service updates for the most current version of MAS 90 and MAS 200 which are a cumulative collection of all the previous updates. The beauty of a service update is you only need to load one (self installing) program to have all prior fixes included on your system.

Based on conversations with Sage, the schedule with which they issues these MAS 90 service updates has now been changed. Previously they used to provide updates for the most current version around the end of every month.

Starting with June 2009 Sage is moving to a quarterly release schedule for their service updates. These fixes will  continue to be available from the Sage online support area at no cost, however logging in to obtain them may require an active user code and password.

Please consult your Sage Business Partner prior to loading any service updates or program fixes. Although these fixes may appear minor, in some cases they could “break” custom programming or Extended Solutions that are  on your system.

Via: MAS 90 Service Updates Now Quarterly

Do you know what each of these mean? Is running a version of MAS90 on a remote hosted Citrix box true Saas? Does it even matter?

The real benefit of SaaS computing may not be obvious to all companies. Initially the most obvious adopters have been organizations who also have many non-local users that are connecting to a central CRM (customer relationship management) database.

Here SaaS makes sense because it eliminates:

• Synchronization problems – all data is stored in one central server so there’s never an issues of replicating out to laptops.
• Upgrades – since the program is run via the Internet – those working from home never have to come into the office for IT to update their laptop to the latest version.
• Potential elimination of higher end hardware – because all that an end user needs to access their information is a common web browser – there’s no need to provide specially equipped laptops or hardware. This greatly reduces the cost of implementing these SaaS solutions because virtually any Internet computer is capable of running the application.

Here’s a great list of definitions that explain in a nutshell what Cloud Computing is all about – including the meaning of SaaS, Iaas, PaaS.

Schulz Consulting – What is Cloud Computing, SaaS, IaaS, PaaS?

Early versions of MAS90 (and MAS200 also) required that you attempt to link in the master file containing the country code name (MAS90 and MAS200 data layouts here). One of the issues was that both the bill to and ship to fields could have different country names. These links weren’t simple to make due to both complexity and an existing Sage bug that limited certain links.

One workaround (not needed for some newer versions of MAS 90 or MAS 200 which have since added these fields to the needed tables) is to create sub reports with shared variables.

This is an intermediate to advanced level task. If you’re at all uncomfortable with Crystal Reports or the MAS 90 file layouts then you may want to pass up this chance to tinker with your forms.

If you’re up for a little adventure then first backup your files then head to the link below where you can view instructions on how to modify your form so that country name is properly displayed.

Link: Schulz Consulting – How to Add Country Names to MAS90 and MAS200 Forms

Sage Earnings Meet Expectations

According to the company press release:

Results for the nine months to 30 June 2009 were consistent with management expectations. Market conditions in the quarter ended 30 June 2009 have remained challenging but largely unchanged. Subscription revenues continue to show solid growth and the cost base has been successfully reduced to address the slowdown in the market for software and software-related services.

Contrast To Microsoft 29% Earnings Decline

On July 23 Microsoft reported profits had declined 29% and revenues declined 17% (the first earnings miss since the company went public in 1980).

Link: Redmond Faces The Future After Its Lousiest Year Ever

According to press reports (Bloomberg) on the Microsoft earnings:

Sales declined in all of Microsoft’s main business units. Windows software revenue dropped 29 percent after the PC market contracted for three straight quarters. Some customers are holding off purchases until a new version of Windows comes out in October. Demand for Office software and advertising on Microsoft’s Web sites also waned.

“It’s a real disappointment,” said Brendan Barnicle, an analyst at Pacific Crest Securities in Portland, Oregon. He has an “outperform” rating on the shares. “It’s a significant miss” in revenue.

Continuing Market Outlook

The continuing market outlook for Sage was stated by Sage UK Chairman Paul Walker as:

There has been no significant change in market conditions during the quarter ended 30 June 2009 and we are planning for markets to remain testing. However, our proven business model and large, geographically diverse, customer base give us confidence that we are well positioned for these conditions and the eventual market recovery. We expect to report results for the year ended 30 September 2009 in-line with market expectations.

The Sage Group plc is a leading global supplier of business management software and services to 5.8 million small and medium-sized enterprises in over 30 countries. Formed in 1981, Sage was floated on the London Stock Exchange in 1989 and now employs over 14,500 people worldwide.

Market consensus of the 24 analyst research notes published after 6 May 2009 for the year to 30 September 2009 is as follows: Revenues £1,452m, EBITA £328m and PBT (pre-amortisation) £306m.

via: Schulz Consulting Sage MAS 90 Consulting