Epicor Software 8-K Epicor® Reports Second Quarter 2006 Earnings

Exhibit 99

For Immediate Release

Contact:	Michael A. Piraino
	EVP and Chief Financial Officer
	Epicor Software Corporation
	Irvine, CA, USA
	949/585-4595
	michael@epicor.com
	Lasse Glassen
	Financial Relations Board
	8687 Melrose Avenue 7th Floor
	Los Angeles, CA, USA
	310/854-8313
	lglassen@financialrelationsboard.com

Epicor® Reports Second Quarter 2006 Earnings

Company Achieves Record Revenues with 40% Year-Over-Year Increase in Second

Quarter Total Revenues Driven by Strong License Fee Growth of 31% and Solid

Performance by CRS and Organic Businesses

Company Raises Guidance for 2006 Full-Year Revenue and Non-GAAP EPS

IRVINE, Calif., July 26, 2006 – Epicor Software Corporation (NASDAQ: EPIC), a leading provider of enterprise software solutions, today reported its financial results for the second quarter ended June 30, 2006. All results should be considered preliminary pending the Company’s filing of its quarterly report on Form 10-Q early next month.

“I am very pleased with our second quarter results, which exceeded our expectations for total revenue, non-GAAP EPS and cash flow from operations,” said George Klaus, chairman and CEO of Epicor. “This strong performance was driven by operating excellence throughout every market we address and across all of our product and services offerings. License revenue growth was strong, supported by continued robust customer migrations to Epicor Vantage 8.0 plus the addition of 179 new customers during the quarter. We are very excited about the market’s overwhelming support and adoption of Epicor’s Vantage Web services-based manufacturing suite and we are seeing the opportunity to drive additional revenues from migrations. In addition, the integration of CRS Retail Systems continues to exceed our expectations with solid revenue growth and the addition of several important new customers.”

“We entered the second half of 2006 with a very healthy pipeline and we continue to see strong demand for our products and services from both new and existing customers in the Americas and abroad. This strong customer demand, supported by a growing pipeline and the operating momentum from our better-than-expected second quarter results, makes us confident in our ability to drive strong performance during the remainder of the year. As a result of our strong second quarter and the favorable customer climate we are experiencing, we are increasing our full year 2006 consolidated revenue guidance to $378 to $383 million, and increasing non-GAAP EPS guidance to $0.71 to $0.72 per diluted share.”

Operating Summary

Total revenues for the second quarter grew 40.2% to a record $99.5 million, compared with $71.0 million in the prior year’s quarter. Excluding stronger than expected total revenue contributions of $22.0 million from CRS Retail Systems Inc., which was acquired on December 6, 2005, total revenues increased 9.1% to $77.5 million. Second quarter license fees were up 30.6% to $24.0 million, compared to $18.4 million in the second quarter of 2005. Excluding contributions by CRS of $3.3 million, License fees increased 12.6% to $20.7 million. Consulting revenue for the second quarter of 2006 grew 48.5% to $27.3 million, compared with $18.4 million in the second quarter of 2005. Excluding CRS consulting revenues of $5.6 million, consulting revenue increased 18.2% to $21.7 million. Maintenance revenue for the second quarter of 2006 grew 12.1% to $37.5 million, compared with $33.5 million in the second quarter of 2005. Excluding contributions from CRS of $3.0 million, maintenance revenue grew 3.1% to $34.5 million. Hardware and other revenue for the second quarter of 2006 grew to $10.7 million from $0.8 million in the second quarter last year. Excluding contributions from CRS of $10.2 million, hardware and other revenue was $0.6 million.

For the second quarter, the Company reported GAAP net income of $7.1 million or $0.12 per diluted share, compared with $29.6 million, or $0.52 per diluted share, in the prior year’s period, which included the positive impact of $0.35 per diluted share related to a non-cash income tax benefit due to the release of a deferred tax valuation allowance. In the second quarter of 2006 non-GAAP earnings were $11.2 million, or $0.20 per diluted share, compared with non-GAAP earnings of $12.9 million, or $0.23 per diluted share, in the same period last year. For comparative purposes, second quarter 2005 fully taxed non-GAAP EPS

was $0.16 per diluted share. Non-GAAP earnings per share growth when fully taxed numbers are compared was 25%. Non-GAAP earnings exclude amortization of intangible assets and stock-based compensation expense, each net of tax and the non-cash income tax benefit.

Balance Sheet Summary

The Company’s balance sheet at June 30, 2006 included cash and cash equivalents of $64.5 million, which was bolstered by more than $19.0 million in cash flow from operations during the quarter. The Company’s total debt balance as of June 30, 2006 was $117.0, which includes a $100 million term loan and $16.7 million drawn on its $100 million revolving credit facility. Subsequent to June 30, 2006, a $6.7 million payment was made, reducing the current outstanding balance to $110.3 million.

At quarter-end, net accounts receivable was $68.3 million. Days sales outstanding (DSOs) decreased to 62, down from 70 in the first quarter 2006, driven by strong collections. Working capital increased by $7.0 million to $36.9 million at the end of the second quarter of 2006 from $29.9 million at the end of the first quarter of 2006.

Third Quarter and Full Year 2006 Guidance

The Company expects total revenues for the third quarter to be approximately $93 million. GAAP earnings per diluted share for the third quarter 2006 is expected to be $0.09 with non-GAAP earnings, as described above, of $0.17 per diluted share, in each case using a weighted average share count of approximately 57 million shares.

The Company is increasing its 2006 full-year guidance. Total revenues for the 2006 year are expected to be in the range of $378 to $383 million, an increase of approximately $6 million from prior full-year estimates. Non-GAAP earnings for 2006 are expected to be in the range of $41 to $42 million. Non-GAAP earnings per diluted share are expected to be in the range of $0.71 to $0.72, an increase from prior estimates of $0.69 to $0.70. Full year non-GAAP earnings per share expectations assume a weighted average share count of 58 million shares. Expected earnings results presume an effective tax rate of approximately 38.0%. As a benchmark, 2005 fully taxed non-GAAP earnings per diluted share were $0.57.

Conference Call Information

The company will hold an investor and analyst conference call directly following the release after the close of market at 2:00 p.m. PDT.

Date:	Wednesday, July 26, 2006
Time:	2:00 p.m. PDT
Dial in:	+1 (800) 289-0529 or outside the U.S. +1 (913) 981-5523
Conf ID:	Epicor

On the call, George Klaus, chairman and CEO, Mark Duffell, president and COO, and Michael Piraino, executive vice president and CFO, will review second quarter 2006 earnings and the outlook for the remainder of 2006. Investors and analysts are invited to participate on the call. Please dial in approximately ten minutes prior to start time. A live audio-only webcast of the call will be made available to the public on the company’s Web site atwww.epicor.com/company/investor and will be archived for thirty days following the call on the company’s Web site.

About Epicor Software Corporation

For 20 years, Epicor has been a recognized leader dedicated to providing integrated enterprise resource planning (ERP), customer relationship management (CRM) and supply chain management (SCM) software solutions to midmarket companies around the world. With the acquisition of Scala, Epicor became a global leader in the midmarket serving over 20,000 customers in 143 countries and supporting more than 30 languages. Epicor leverages innovative technologies like Web services in developing end-to-end, industry-specific solutions for manufacturing, distribution, enterprise service automation and hospitality that enable companies to drive efficiencies throughout business operations and build competitive advantage. With the scalability and flexibility to support long-term growth, Epicor’s solutions are complemented by a full range of services, providing a single point of accountability to promote rapid return on investment and low total cost of ownership. Epicor’s worldwide headquarters are located in Irvine, California with offices and affiliates around the world. For more information, visit the company’s Web site atwww.epicor.com.

Epicor is a registered trademark of Epicor Software Corporation. CRS is a Trademark of CRS Retail Systems Inc. All other trademarks referenced are the property of their respective owners.

Forward-Looking Statements

Management of Epicor Software believes certain statements in this press release may constitute forward-looking statements with respect to the financial condition, results of operations, continued profitability and activities of Epicor. These forward-looking statements include statements regarding expected revenues, earnings and earnings per share, and other statements that are not historical fact. These forward-looking statements are based on currently available competitive, financial and economic data together with management’s views and assumptions regarding future events and business performance as of the time the statements are made and are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied in the forward-looking statements.

Such risks and uncertainties include but are not limited to changes in the demand for enterprise resource planning products, particularly in light of competitive offerings; the timely availability and market acceptance of new products and upgrades; the impact of competitive products and pricing; the discovery of undetected software errors; changes in the financial condition of Epicor’s major commercial customers and Epicor’s future ability to continue to develop and expand its product and service offerings to address emerging business demand and technological trends and other factors discussed in Epicor’s annual report on Form 10K and 10K/A for the year ended December 31, 2005 at pages 17-25 and quarterly report on Form 10Q for the quarter ended March 31, 2006 at pages 36 to 44. As a result of these factors the business or prospects expected by the company as part of this announcement may not occur. Epicor undertakes no obligation to revise or update publicly any forward-looking statements.

This press release includes certain non-GAAP financial measures, including organic revenue growth, which excludes the revenue contribution of CRS, and non-GAAP net income, fully taxed non-GAAP net income, non-GAAP net income per diluted share amounts and fully taxed non-GAAP net income per diluted share amounts, which exclude the amortization of intangible assets, stockbased compensation expense, each net of tax and the non-cash income tax benefit. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for measures of financial performance prepared in accordance with GAAP. The company’s management believes that these non-GAAP financial measures provide meaningful supplemental information regarding the performance of the company’s business operations. These measures also facilitate management’s internal comparisons to our historical operating results and to our competitors’ operating results, operational forecasting and budgeting. Investors and potential investors are encouraged to review the reconciliation of the non-GAAP financial measures contained within this press release with their most directly comparable GAAP financial results.

-Financial Tables to Follow-

EPICOR SOFTWARE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(Unaudited)

	June 30, 2006			December 31, 2005
ASSETS
Current assets:
Cash and cash equivalents	$	64,459		$	49,768
Short-term investments		—			3,271
Accounts receivable, net		68,261			67,728
Deferred income taxes		20,823			20,726
Inventory		8,725			4,572
Prepaid expenses and other current assets		9,165			6,759
Total current assets		171,433			152,824
Property and equipment, net		10,963			11,347
Deferred income taxes		22,449			22,449
Intangible assets, net		64,492			73,539
Goodwill		165,712			164,451
Other assets		5,674			4,341
Total assets	$	440,723		$	428,951
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	20,988		$	12,150
Accrued expenses		49,689			56,709
Current portion of accrued restructuring costs		2,613			2,812
Current portion of long-term debt		1,103			100
Current portion of deferred revenue		60,092			57,183
Total current liabilities		134,485			128,954
Long-term debt, less current portion		115,863			124,639
Long-term portion of accrued restructuring costs		1,067			1,460
Long-term portion of deferred revenue		1,726			2,284
Long-term deferred income taxes		1,165			1,164
Total long-term liabilities		119,821			129,547
Stockholders’ equity:
Common stock		58			56
Additional paid-in capital		340,701			336,139
Less: treasury stock at cost		(10,679	)		(10,679	)
Accumulated other comprehensive loss		(1,297	)		(1,053	)
Accumulated deficit		(142,366	)		(154,013	)
Total stockholders’ equity		186,417			170,450
Total liabilities and stockholders’ equity	$	440,723		$	428,951

EPICOR SOFTWARE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2006			2005			2006			2005
				(as Restated)						(as Restated)
Revenues:
License fees	$	23,995		$	18,369		$	43,306		$	34,042
Consulting		27,270			18,358			52,228			35,282
Maintenance		37,533			33,488			73,702			66,734
Hardware and other		10,744			808			14,784			1,749
Total revenues		99,542			71,023			184,020			137,807
Cost of revenues		44,034			25,440			79,795			50,154
Amortization of intangible assets		4,249			2,811			8,494			5,594
Total cost of revenues		48,283			28,251			88,289			55,748
Gross profit		51,259			42,772			95,731			82,059
Operating expenses:
Sales and marketing		16,422			13,661			31,423			27,762
Software development		8,844			7,035			17,176			14,425
General and administrative		13,080			11,093			25,322			22,249
Total operating expenses		38,346			31,789			73,921			64,436
Income from operations		12,913			10,983			21,810			17,623
Interest expense		(2,327	)		(295	)		(4,211	)		(574	)
Other income (expense), net		910			(29	)		1,196			(183	)
Income before income taxes		11,496			10,659			18,795			16,866
Minority interest in income of consolidated subsidiary		—			59			—			90
Provision for income taxes		4,411			(18,954	)		7,148			(18,515	)
Net income	$	7,085		$	29,554		$	11,647		$	35,291
Net income per share:
Basic	$	0.13		$	0.54		$	0.21		$	0.65
Diluted	$	0.12		$	0.52		$	0.21		$	0.63
Weighted average common shares outstanding:
Basic		55,763			54,486			55,683			54,231
Diluted		56,950			56,592			56,795			56,419

EPICOR SOFTWARE CORPORATION

NON-GAAP EARNINGS RECONCILIATION

(in thousands, except per share amounts)

(Unaudited)

	Three Months Ended June 30,					Six Months Ended June 30,
	2006		2005			2006		2005
			(as Restated)					(as Restated)
Net income	$	7,085	$	29,554		$	11,647	$	35,291
Add back, net of tax:
Amortization of intangible assets		2,795		2,680			5,629		5,383
Stock-based compensation expense		1,308		591			1,899		1,197
Non-cash income tax benefit		—		(19,917	)		—		(19,917	)
Non-GAAP earnings	$	11,188	$	12,908		$	19,175	$	21,954
Non-GAAP earnings per diluted share	$	0.20	$	0.23		$	0.34	$	0.39
Weighted average common shares outstanding:
Diluted		56,950		56,592			56,795		56,419

EPICOR SOFTWARE CORPORATION

2005 FULLY TAXED NON-GAAP EARNINGS RECONCILIATION

(in thousands, except per share amounts)

(Unaudited)

	Three Months Ended June 30,
	2005
Income before income taxes	$	10,659
Minority interest in income of consolidated subsidiary		59
Provision for income taxes at statutory tax rates		4,157
Fully taxed net income	$	6,443
Add back, net of tax:
Amortization of intangible assets		1,798
Stock-based compensation expense		591
Fully taxed non-GAAP earnings	$	8,832
Fully non-GAAP earnings per diluted share	$	0.16
Weighted average common shares outstanding:
Diluted		56,592