That reflected service revenue of $6.3 million, up 33.6 percent from $4.7 million, countered by product sales of $864,698, which was off 36 percent from $1.35 million for the compared quarters. This is the way of the new world order in software. SWK CEO Jeff Roth noted, "We've been working on some big X3 deals that have yet to close. Meanwhile, our NetSuite and Acumatica Cloud ERP sales are strong and are coming in as subscription/SaaS deals where we don't recognize all of the revenue up front." He said the services backlog is very large "and the silver lining is that the deferral of a few of the larger deals allows us to catch our breath as we successfully meet project deadlines." And despite the quarterly result, the company reported net income of $582,232 for the nine months, an increase of 36 percent from $428,796 while revenue for the year-to-date of $19.6 million, up 20.6 percent from $16.3 million. Also fiscal 2015 product revenue of $3.2 million represents an increase of 8.7 percent over $2.9 million a year ago.
X3 CYCLE, CLOUD CUTS SWK REVS Featured
The switch to the cloud and the emphasis on Sage X3 has cut into revenue of SWK Technologies. The reseller's parent, SilverSun Technologies, reported this week a sharp drop in product revenue and net income for the third quarter ended September 30. Net income for the most recently ended period was $16,464, down sharply from $248,165 a year ago. Revenue rose to $7.2 million, an increase of 18.3 percent from slightly more than $6.1 million in last year's corresponding period.
