Epiq Systems reports a decline in sales but higher profits

Epiq Systems Inc. on Tuesday reported a decline in third-quarter revenues but higher profits.

The Kansas City, Kan., provider of software for the legal industry said operating revenue of $104 million for the quarter was down from $109.8 million in the same three months of 2013.

Epiq said its revenues were affected partly by a decline in bankruptcy filings and “pricing trends” in one of its other markets.

Profits in the third quarter climbed to $5 million from $4.2 million in the year-earlier quarter.

Through nine months, Epiq reported a loss of about $700,000, compared with net income of $11 million last year.

“Looking through the balance of calendar 2014, we expect our business performance to continue on the same pace that we saw during the third quarter,” Tom Olofson, the company’s chairman and chief executive, said in a statement.

Epiq, whose two largest shareholders are pushing for a sale or reorganization, recently hired Credit Suisse Securities to advise its board on possible strategic and financial options.

The company disclosed in September that it had rejected a $20-a-share takeover offer from P2 Capital Partners LLC, a New York hedge fund that is now its largest shareholder, with nearly 17 percent of the shares.

The company's second-biggest shareholder, St. Denis J. Villere & Co. of New Orleans, also recently called for the company to consider strategic alternatives, including taking it private. The investment firm owns about 16.2 percent.

This story was originally published October 28, 2014 at 3:25 PM with the headline "Epiq Systems reports a decline in sales but higher profits."