Bob Scott reporting in his weekly Insights column.
The results for software vendor Infor for the second quarter ended October 31 are difficult to describe. The company swung to a loss over the prior year with a drop in revenue. However, Infor is being impacted by a switch of its fiscal year end from May 31 to April 30, which means the push for sales by the ends of quarters is different. The loss for the most recently ended quarter was $2.9 million, compared to income of $13.1 million a year earlier. Revenue dropped to $663.3 million, down 3.3 percent from $685.6 million in the year earlier quarter. The company also took a hit from the strengthening of the U.S. dollar. While revenue for the recently ended quarter rose by 2.7 percent over last year’s corresponding period, currency took a 6-percent bite. The increased revenue reflects the addition of results of the recently purchased GT Nexus. The move from licensed sales to subscription revenue follows the industry trends. The company lumps subscription and license revenue and together they brought in $139.9 million in the quarter, up 5.3 percent from $132.8 million. However, Infor said subscription income rose by 10.1 percent, but was nicked by 4.8 percent by currency. On a constant currency basis, subscription revenue rose by 20.7 percent. There was a 4.8-percent decline in product updates and support fees to $354.3 million, off from $372 million a year ago.