While top-line growth was aided by the acquisition of the assets of Edifice Information Management Systems, recurring revenue was up 35 percent from a year ago. SPS paid $26.3 million in cash and 347,852 shares common stock for most of Edifice's assets while assuming some liabilities. SPS said the purchase enabled it to expand its point-of-sale analytic products. SPS also received $57.8 million in net proceeds from a September 11 stock offering. The drop in net income was influenced by a 3-percentage point drop in gross margin coupled with a 26-percent rise in operating expenses.