Mapics reports business as usual and Frontstep to complete this month

Net income at $1.4 million for the first quarter of its fiscal 2002—03 (closed December 31), against last year’s $1.9 million, and revenues down slightly from $33.3 million to $31.1 million are the picture of relative health at mid market manufacturing extended ERP software developer Mapics. The firm, which also expects to complete its acquisition of ERP and supply chain software firm Frontstep (formerly Symix) on February 18 at special shareholder meetings, has done remarkably well, albeit carried by what is now a very large customer base around the world. So highly, in fact, is the company regarded that analyst Forrester has named it top vendor among leading ERP companies in the mid range, in terms of providing customer support and a good overall user experience. That accolade comes in Forrester’s latest ‘Wave’ report, which evaluated ERP vendors of various sizes including SAP, Oracle, Microsoft Business Solutions, JD Edwards and QAD. Says Dick Cook, Mapics’ president and CEO: “Our profitability contrasts with the continued losses and shortfalls that have plagued other providers of enterprise solutions.” He notes that the performance comes despite many manufacturers remaining “cautious about committing to new capital projects because of the uncertainty surrounding the near-term path of the economy.” This reluctance to invest in either upgrading existing systems or installing new ones, he notes, has affected all enterprise IT suppliers. “Against this cautious backdrop, we signed contracts in the first quarter for $7.8 million, down from $8.6 million in the first quarter of 2002. This decline comes after a period of sequential growth for the previous three quarters in licence contracts signed, and we expect a resumption of this positive trend in contract volume starting in the second quarter.” As for the Frontstep acquisition, Cook says: “Following the acquisition, Mapics will have solutions that have been implemented in more than 10,000 sites world-wide, making us the largest global mid-range provider of enterprise solutions committed exclusively to manufacturers.”