Has anyone seen the latest SEC filing from Epicor
(
http://sec.yahoo.com/e/010515/epic.html)? With the release difficulties of
V.5 I thought the 2 paragraphs below were of interest.
Also; note the change in revenue from Software License Fees.
OUR SOFTWARE PRODUCTS MAY CONTAIN ERRORS OR DEFECTS, WHICH COULD RESULT IN
THE
REJECTION OF OUR PRODUCTS AND DAMAGE OUR REPUTATION AS WELL AS CAUSE LOST
REVENUE, DELAYS IN COLLECTING ACCOUNTS RECEIVABLE, DIVERTED DEVELOPMENT
RESOURCES AND INCREASED SERVICE COSTS AND WARRANTY CLAIMS.
Software products as complex as the ERP products offered by the Company may
contain undetected errors or failures when first introduced or as new
versions are released. Despite testing by the Company, and by current and
potential customers, any of the Company's products may contain errors after
their commercial shipment. Such errors may cause loss of or delay in market
acceptance of the Company's products, damage to the Company's reputation,
and increased service and warranty costs. The Company from time to time is
notified by some of its customers of errors in its various product lines,
including its e by Epicor products. Although it has not occurred to date,
the possibility of the Company being unable to correct such errors in a
timely manner could have a material adverse effect on the Company's results
of operations and its cash flows. In addition, technical problems with the
current release of the database platforms on which the Company's products
operate could impact sales of these products, which could have a material
adverse effect on the Company's results of operations.
IF WE FAIL TO RAPIDLY DEVELOP AND INTRODUCE NEW PRODUCTS AND SERVICES, WE
WILL
NOT BE ABLE TO COMPETE EFFECTIVELY AND OUR ABILITY TO GENERATE REVENUES WILL
SUFFER.
The market for the Company's software products is subject to ongoing
technological developments, evolving industry standards and rapid changes in
customer requirements. The Company believes the Internet is transforming the
way businesses operate and the software requirements of customers.
Specifically, the Company believes that customers desire e-Business software
applications, or applications that enable a customer to engage in commerce
or service over the Internet. As companies introduce products that embody
new technologies or as new industry standards emerge, such as web-based
applications or applications that support e-Business, existing products may
become obsolete and unmarketable. The Company's future business, operating
results and financial condition will depend on its ability to:
- Continue to deliver and achieve successful market acceptance of e-Business
application software to facilitate e-Business, including web enablement
- Enhance its existing products
- Continue to develop new and/or improved products that address the
increasingly sophisticated needs of its customers, particularly in the areas
of e-Business and e-Commerce
- Develop and continue to develop products for additional platforms
- Effectively train its sales force to sell an integrated suite of
e-Business products
Further, if the Company fails to respond to technological advances, emerging
industry standards and end-user requirements, or experiences any significant
delays in product development or introduction, the Company's competitive
position and revenues could be adversely affected. The Company's success
will depend on its ability to continue to develop and successfully introduce
new products and services, including those in the e-Business arena. The
Company cannot assure you that it will successfully develop and market such
new and/or improved products on a timely basis, if at all. In developing new
products, the Company may encounter software errors or failures that force
the delay in the commercial release of the new products. Any such delay or
failure to develop could have a material adverse effect on the Company's
business, results of operations and financial condition. From time to time,
the Company or its competitors may announce new products, capabilities or
technologies that have the potential to replace or shorten the life cycles
of the Company's existing products. The Company cannot assure you that such
announcements will not cause customers to delay or alter their purchasing
decisions, which could have a material adverse effect on the Company's
business, operating results and financial condition.