Prepping for ReadSoft User Conference, May 14-16

Looks like I'm heading down to this year's ReadSoft User Conference, May 14-16 New Orleans.. Should be a good, fun and productive event. I'm expecting to get an overview on ReadSoft's direction through a combination of attending the sessions, one-on-one interviews with ReadSoft executives and partners, and some good ole' Nawlins networking.

I visited the ReadSoft offices almost a year ago and came away with this overview of their basically two-pronged strategy: expanding their capture and P2P practices. It will be interesting to see how that strategy has evolved over the year, under the guidance of Andrew Pery, who was working for ReadSoft as a consultant when I visited last year, and was later named the company's first CMO.

ReadSoft is coming on an improved first quarter that included 27% YOY growth in software license sales and a 9% increase in overall revenue. ReadSoft's EBITDA was improved, but the ISV still lost money. According to President & CEO Per Åkerberg CEO, as quoted in the press release on the Q1 financials, "Our EBITDA result and our margins have taken clear s teps in the right direction....A gradual change in the reporting of our revenues from our support and maintenance agreements has affected this quarter’s result negatively compared to first quarter last year. This effect means no lost revenue but only a time delay in the reporting of these revenues."

Square 9 Introduces A/P Product

In conjunction with the latest version of its SmartSearch software, Square 9 Softworks has introduced a purchase-to-pay (P2P) suite. The new product combines several elements of Square 9's existing product line, including its capture, repository, workflow, and e-forms technology. It also leverages a new Web interface that is designed to help take the New Haven, CT-based ISV's product to the next level.

For higher volume P2P applications, customers can leverage Square 9's partnership with Artsyl Technologies to automate data capture. Square 9 P2P starts at $27,000 for a five-user system. Square 9 CEO Stephen Young said that for 75% of the ISV's customers, accounts payable is one of the use cases.

Square 9 has been growing rapidly since coming onto the scene with an affordable document management systems targeted at MFP dealer reseller channel. "Early on we positioned ourselves as targeting the SMB," said Young. "And, while we can still sell a three-user system starting at 2,300, we are also now focusing on scaling out and selling further upstream."

More on this in our next premium edition.

Kofax Highlights MarkView Deals

Somewhat interesting announcement by Kofax, highlighting several recent deals - totaling more than $5 million, in which its MarkView A/P purchase-to-pay (P2P) software was included. MarkView is the P2P application that Kofax picked up when it acquired 170 Systems in 2009. Scuttlebutt has been that sales of MarkView have been somewhat underwhelming since the acquisition, and this announcement is probably designed to show that Kofax now has that business headed in the right direction.

When Kofax bought 170 Systems, it was reportedly producing $28 million in annual revenue, although I was later given the impression that a good majority of that was coming from professional services. Two of the three deals highlighted in today's release include the mention of other Kofax software products sold along with MarkView, so I'm assuming the $5 million figure isn't all MarkView.

That said, that type of integration was kind of the point of the whole acquisition - to give Kofax a better competitive offering vs. ReadSoft. However, none of the deals mention integration with SAP, which has been one of Kofax's goals- and an area where ReadSoft is strong. Two of the MarkView deals do mention integration with Oracle software, which is where MarkView has been historically strong.

Basically, I'm glad to see Kofax has something to brag about regarding MarkView, but based on the content of the release, I'm not sure how excited I should be getting.