Irvine-based Epicor Software Corp. said Tuesday it has upped its third-quarter profit outlook and reworked a credit line.
Epicor said it now projects adjusted profits to exceed the $5.5 million to $6.1 million range it forecast in July.
The company hasn’t set a date for the release of third-quarter earnings, though they are due in coming weeks.
A year ago, Epicor posted a profit of $11.6 million.
The company held its third-quarter revenue forecast at $96 million to $100 million.
A year earlier, Epicor posted revenue of $138 million, which included some $20 million in sales of computer products related to its software that Epicor considers “not core to the company’s business model.”
Epicor makes what’s known as enterprise resource planning software, which helps midsize retailers, manufacturers and others manage accounting, customer contacts, inventory, sales and other back-office tasks.
The company’s shares closed up nearly 15% Tuesday on a market value of $450 million.
Epicor also said it reworked the terms of a 2007 line of credit arranged by the investment banking arm of Bank of America Corp.
The company eliminated terms of the credit line that forecast its ability to continue making interest payments.
Instead, Epicor and its lenders agreed to new terms regarding minimum profitability and the availability of cash and other “liquidity.”
The size of the credit line was cut from $200 million to $100 million. The life of the credit line was shortened by five months to Sept. 30, 2012.
The credit line’s interest rate was raised by 2% to 2.25%.
The reworking gives Epicor more flexibility, Chief Financial Officer Michael Pietrini said.
The terms of the credit line “were becoming a potential impediment for the company and were being factored into many of the business decisions we made,” he said.
