QAD actually helps sell the RIMS product through a co-marketing agreement. Of the firms specializing in the warehouse field, others concentrate on large jobs that involve substantial work reconfiguring the software. While Robocom can do such work, it is developing a niche for systems that can be used more or less out of the box. The company says it has installed over 50 such systems, that are running fine with only minor modifications. Together with the new 4.0 improvements, this should be a substantial selling point.
Management says the cost can be recouped in a year through operating efficiencies.
The big price decline since then reflects lackluster results. Service and maintenance revenues were down due to increasing sales of software requiring less upkeep, but that will be a temporary blip. There s a lot of leverage here. Controlling costs and increasing sales even moderately could quickly swing results back to the plus column. That didn t happen in the six months ended November management was still building up infrastructure for launching its new products and to support future growth.