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Great Plains Posts Strong Q1

Computergram International, Sept 16, 1999

Great Plains Software Inc, the Fargo, North Dakota-based financial software provider, has reported first-quarter net income up 60.4% at $3.5m on revenue up 47% at $39.9m. Earnings per share for the quarter rose 46.7% to $0.22 from $0.15 a year ago and beat the First Call consensus by $0.02.

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Operating income for the quarter was $4.5m, a 51% increase year- over-year. License revenue rose 45.5% to $23.4m, while services revenue rose 49% to $16.4m. The company says its customer base increased to 21,000 during the quarter. Gross margin for the quarter was 70% of sales, down from 72% in the year-ago quarter.

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