Pivotal Unveils New Suite on Heels of Exec Shakeup
Pivotal Software announced that it began shipping its new Pivotal Service customer service software suite Tuesday, just one day after an executive shakeup that saw its chief operating officer resign. The Vancouver-based companys new suite--which includes modules for multichannel customer contact centers, Web-based self-service and service analytics, promising increased response times at reduced costs--comes at a time of some tumult at its executive level.The heads of seven core business functions at the company--marketing, sales, alliances, professional services, international operations, finance and administration, and research and developmentwill now report directly to Manning, the company announced Tuesday. Previously only the COO and chief technology officer reported to the president and CEO at Pivotal. "Having analyzed our company and our market opportunity, Ive determined that this is the optimal operational model to ensure efficiency and a smart balance of responsibilities throughout the company," said Manning in a statement. Pivotal also announced the promotion of Divesh Sisodraker, the companys vice president of corporate development for the past 18 months, to the position of chief financial officer. Clearly, changes were inevitable at Pivotal. The companys net loss was up considerably for the fiscal year ended June 30, coming in at $32.5 million on $95.3 million in revenues. More than half of those losses were in the fourth quarter alone as license revenues fell, even as overall revenues rose slightly. The company warned on Tuesday that revenues will continue to fall for the first quarter ended Sept. 30 to between $16 million and $17 million, well below financial analysts consensus estimate of $30 million and the $21.1 million it recorded in the same period a year ago. It figures to lose between $11 million and $12 million on those revenues. The companys stock closed Tuesday at a 52-week low of $2.70 per share, which still leaves it in the middle of the pack of the beleaguered CRM sector.
Just Monday, Pivotal announced an organizational shakeup, which included the resignation of COO Vincent Mifsud. The shakeup makes it obvious that new President and CEO Bo Manning, who replaced co-founder Norm Francis in late August, is tightening his grip on the company.