Profits Still Elude CRM Vendors

Published: Oct 18, 2002
Updated: Feb 2, 2021
2 minute read
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In a quarter when market-leading Siebel Systems Inc. posted a rare loss, few other CRM software vendors fared much better.

PeopleSoft Inc., which had been largely unscathed by the economic downturn, saw revenues drop year-to-year from $520.7 million to $471.2 million. The Pleasanton, Calif.-based company relies largely on services revenues, which actually went up by almost $5 million in the quarter, but license revenues, for all of the companys front and back office business applications, tumbled from $151.8 million to $121.6 million.

PeopleSofts net income dropped as well, from $50.3 million to $44.6 million.

E.piphany Inc. continued its slide, as total revenues fell from $29.2 million to $19.8 million year-to-year. License revenues accounted for all of the drop-off, falling from $16.2 million to $6.8 million.

At least the San Mateo, Calif., companys losses were a bit more manageable. After the companys infamous $2 billion loss in the third quarter last year, E.piphany lost just $13.6 million this year.

Kana Software Inc. fell short of profitability as well, reporting a net loss of $6.8 million, down from $96.1 million in the same year-ago period. But the Menlo Park, Calif.-based company did show some life on the license revenue front, surging from $2.9 million in last years third quarter to $8.8 million this year.

Total revenues for the quarter were flat, however, coming at just over $18 million, as Kanas professional services revenues fell off sharply year-to-year.

SAP AG also claimed a 19 percent year-over-year increase in license revenues for its MySAP CRM product line, up to $90.4 million. Total license revenues fell at SAP though, from $434.4 million to $422.7 million. Total revenues climbed from $1.6 billion to $1.65 billion. Net income climbed from $36 million to $196.3 million.

Dennis Callaghan

Dennis Callaghan

Content Writer

Dennis Callaghan is a writer for Channel Insider, focusing on developments in enterprise software and collaboration platforms. He has reported on significant industry updates, including Microsoft's CRM advancements and IBM's strategies to enhance workplace solutions for SMBs.

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