Kalamazoo government-software maker Manatron Inc.'s first quarter earnings soared 800 percent on increased profitability. Manatron's net income in the quarter ended July 31 jumped to $397,500, or 8 cents per diluted share, compared to $51,500, or 1 cent a share, a year ago.
Despite slightly lower revenues in the period, Chief Executive Officer Paul Sylvester said stronger sales of higher profit products, and lower costs, contributed to the strong income. "Our margins and profitability for the first quarter showed marked improvement over the prior year despite a slight decrease in our revenue," Sylvester said in a press release. The company's software-license fees increased 50 percent to $1.
5 million, but total revenue in the period fell 3.5 percent to $10.4 million.
Sylvester said two acquisitions that were completed after the books closed on the first quarter would drive subsequent revenues to record levels. The company purchased Sigma Systems Technology Inc., of Williamsville, N.
Y., for $1.3 million in August.
Also last month, the company bought Austin, Texas-based Hart InterCivic Inc. for $4.8 million.
"As a result of these acquisitions, we feel good about our ability to post over $50 million in annual revenues from this point forward, which has been a key milestone for our company," Sylvester told investment analysts during a Monday afternoon conference call. Manatron's balance sheet at the end of the first quarter also looked strong, officials reported, with working capital of $5.9 million, $6.
3 million in cash and no bank debt.
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