Best and Worst of Times for CRM Vendors

 
 
By Dennis Callaghan  |  Posted 2003-10-24 Print this article Print
 
 
 
 
 
 
 

The customer relationship management software sector showed some signs of rebounding in third-quarter, with some companies reporting either rising revenues or reduced losses.

The much-beleaguered customer relationship management software sector started to show some signs of rebounding in third-quarter. Earnings statements out this week had most companies reporting either rising revenues or reduced losses. But other firms still suffered significant drop-offs in revenues and deeper losses, while the once high-flying Web personalization software developer NetPerceptions Inc. moved one step closer to complete dissolution.
E.piphany Inc. led the rebounders as its revenues climbed year-to-year for the second straight quarter, up from $19.8 million to $24.2 million, boosted by a jump in software license revenues, from $6.8 million to $10.2 million.
That helped the San Mateo, Calif.-based company shave its net loss to $4.3 million from $13.6 million in last years third quarter. Pivotal Corp.s fiscal first quarter saw revenues climb to $13.3 million from $12.3 million in the same period a year ago. License revenue was up from $3.2 million to nearly $4 million year-over-year. Vancouver, B.C.-based Pivotal, which announced earlier this month that it will be acquired by Oak Investment Partners and merged with Talisma Corp., lost nearly $3 million in the quarter after an $8.8 million loss in the same period last year. Revenues fell slightly at e-marketing service provider Digital Impact Inc, from $11.1 million in last years fiscal second quarter to $10.9 million this year. The San Mateo-based company did post a $108,000 profit however after losing $1.2 million in the same period last year. Interactive selling software developer Selectica Inc. increased its fiscal second quarter revenues from $9.4 million to $9.9 million year over year. License revenues led the way, climbing from $3.2 million to $4.3 million. San Jose, Calif.-based Selectica lost $3.2 million in the quarter after posting a $5.2 mil-lion loss in the same period last year. Kana Software Inc.s third-quarter revenues tallied $13.8 million, down from $18 million in last years third quarter. License revenue was hardest hit, dropping from $8.8 million to $5.1 million year-to-year. Menlo Park, Calif.-based Kana did cut its loss though, to $4.1 million from $6.8 million in the same period last year. In the broader e-business applications space, Art Technology Group Inc. returned to the red with a $3.2 million third-quarter loss after turning a profit in the second quarter. The Cambridge, Mass.-based company lost $3.1 million in last years third quarter. Revenues fell from $24.5 million to $16 million year-to-year, with license revenue hardest hit, dropping from $11.8 million to just $5 million. Longtime ATG rival BroadVision Inc.s revenues dropped from $27.2 million in last years third quarter to $18.6 million this year. License revenue fell from $10.8 million to $5.1 million. The Redwood City, Calif.-based company did cut its net loss however from $67.7 million to $10.3 million. Revenues rose slightly at Blue Martini Software Inc., from $8.5 million to $9.1 million. License revenue led the way, rising from $1.4 million to $4.2 million. San Mateo-based Blue Martini lost $4.5 million in the quarter after losing $28 million in the third quarter last year. Call center software developer Aspect Communications Corp. reported third quarter revenues of $92.6 million, down from $96.5 million in the same period last year. Software license revenues fell from $21.5 million to $18.7 million, while hardware revenue was down from $16 million to $11.6 million. San Jose-based Aspect did post an $8.2 million profit in the quarter though after losing nearly $60 million in last years third quarter. Last and least, NetPerceptions board of directors voted unanimously to dissolve the company and liquidate its intellectual property assets, really just a formality at this point as the fading Web personalization pioneer has been on life support for some time now. In what may be its last quarterly earnings report, NetPerceptions, of Minneapolis, lost $1.7 million on $438,000 of total revenues. That compares to a $626,000 loss on $1.6 million in revenues in last years third quarter. License revenue dropped from $613,000 to $95,000 year-to-year. Discuss this in the eWEEK forum.
 
 
 
 
 
 
 
 
 
 
 

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