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An 11-percent decline in license revenue cut into Infor’s results for the first quarter ended July 31. With license income off 15 percent in constant currency for two consecutive quarters, the results seemed to cool off the software company’s talk of a possible initial public offering.

“We want to wait until we are further along on the SAAS transition,” new CEO Kevin Samuelson said in his first earnings conference call.  A comment from one financial analyst indicated the comments were read as making an IPO less likely than had seemed from the comments in the prior earnings call.

Samuelson noted that with the transition to the cloud, license revenue will continue to fall. But Infor wants to get back to a 10-percent drop in license revenue on a constant currency basis.The drop cut into net income which fell to $7.3 million for the most recently ended quarter off 70 percent from $77.3 million a year earlier. Revenue dropped 2.8 percent to $780 million from $782.7 million in last year’s corresponding period

Also denting results was a reserve of $7 million taken for a large customer that has put a cloud deal on hold. Samuelson said the company will be talking with the customers. “It’s a company that’s going through pretty material changes itself,” he said. The customer has a leadership change, along with divesting assets.

One analyst asked because of the way SAAS revenue is recognized, “What would cause revenue to be reversed?” Samuelson said most customers pay on an annual basis but said only that reversals happen. He also said there is no change in the length of sales cycles.

Asked about possible acquisitions, the CFO said the company’s stance is to “continue to de-lever”. However, he said cash acquisitions are possible. As of July 31, Infor’s long-term debt stood at $5.13 billion, down from $5.54 billion on April 30. As of July 31 current assets were $928.5 versus currently liabilities of $1.72 billion, a working capital deficit of $792.1 million 

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