CRM Revenue Shortfall

By Dennis Callaghan  |  Posted 2002-07-19 Print this article Print

The companys bottom line took it on the chin though, as it registered an $85.7 million net loss, up from $69.8 million in last years second quarter. Though much of that loss stemmed from a $55 million goodwill impairment charge caused by the drop in the companys stock price, Kana still had a loss of $24.2 million, not taking into account interest, taxes, depreciation and amortization. The companys services business proved to be a big money loser. The good news for AskJeeves Inc. was that its Web properties nearly doubled their second-quarter revenues year-to-year, from $7.7 million to $14.2 million. But the bad news was that the companys enterprise software division, which develops natural language customer service and search software, saw revenues tumble from $9 million in last years second quarter to just $3.4 million in this years.
While that gave the company a slight increase in revenues, it still took an $8.5 million loss for the quarter, down from $20.9 million in the same period a year ago.
AskJeeves, of Emeryville, Calif., projected 20 percent revenue growth for the rest of the year as its JeevesOne Enterprise product, just released last quarter, takes hold. It also announced Thursday that it was switching to Google Inc.s Sponsored Links Program to provide paid advertising listings on its search sites. The 3-year, $100 million deal replaces a deal with Overture Services Inc. as the provider of paid search engine listings at and America Online earlier this year also switched from Overture to Google for paid search listings. Call center software developer Aspect Communications Corp. saw second-quarter revenues drop from $113.4 million to $96 million year-to-year. License revenues fell from $28.6 million to $17.8 million in that period. The San Jose, Calif.-based company did manage to trim its net loss though from $46 million to $17.7 million year-to-year. But that wasnt good enough. With revenues expected to be no better than flat the rest of the year, Aspect also announced Thursday that it would be reducing head count by approximately 400 people or 22 percent this quarter. The reduction will result in a restructuring charge of $6 million to $8 million, to be recorded in the third quarter of 2002. The cost savings related to the workforce adjustment and other expense reduction activities are anticipated to be approximately $15 million per quarter by the fourth quarter of 2002, officials said. Applix, an analytical CRM vendor based in Westborough, Mass., saw second-quarter revenues drop only slightly, from $10.4 million to $9.2 million year-to-year. License revenues were down from $4.5 million to $4 million in the same period. The companys net loss fell though, from $2.7 million to $675,000. Related Stories:
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