Concerto Software's Record Second Quarter 2004 Financial Results Marked by Continued Growth, Profitability (email this article)

WESTFORD, Mass., August 11, 2004 Concerto Software, Inc (Company Profile, Past Stories, Case Studies)., a proven provider of contact center solutions, today announced financial results for the second quarter of 2004. In its inaugural months as a private entity, Concerto Software(TM) continued to demonstrate the strong growth, sound fiscal management and profitability that had always been the company's hallmarks as a publicly traded business.
 
Revenue for the second quarter of 2004 was $40.0 million, an increase of 52% compared to $26.3 million in second quarter revenue last year and an increase of 10% compared to $36.3 million in revenue for the first quarter of 2004. This marks the fifth consecutive quarter of sequential revenue growth for the company. Product revenue for the second quarter was $18..4 million, an increase of 57% from the second quarter last year and a 15% increase from the first quarter of 2004. The first quarter 2004 revenue assumes the Concerto Software and Melita International merger occurred as of January 1, 2004.
 
Strong international sales combined with solid performance in North America spurred Concerto Software's vigorous growth this quarter. Asia Pacific recorded record sales for the seventh quarter of the last eight. In addition, Concerto Software signed 29 new name accounts during the period. Eighteen of these accounts were sales of EnsemblePro(TM), Concerto Software's unified contact center platform, which has accounted for 34% of total product revenue for the first half of the year.
 
"Concerto Software's robust performance this quarter validates the company's ability to execute well against its strategy," said James D. Foy, president and CEO of Concerto Software. "The substantial growth in our EnsemblePro customer base and strong international sales demonstrate that Concerto Software is delivering solutions that companies around the globe are increasingly relying upon to enhance the way they interact with their customers."
 
During the second quarter, the company also released its proprietary Digital Communications Processor (DCP) on Conversations(TM), a leading outbound dialing solution brought to Concerto Software through the February merger with Melita International. The DCP on Conversations provides greater accuracy of call classification and increased resource utilization, leading to productivity increases of up to 15% depending on the business application. The immediate value of this solution generated strong demand that contributed significantly to the company's results this quarter with 15 systems ordered by customers.
 
"The DCP on Conversations is an example of how quickly and effectively Concerto Software and Melita were able to combine the best capabilities of what were independent solutions to deliver greater value to our customers," added Foy. "This also demonstrates that our commitment lies first and foremost with our customers ensuring that the solutions they depend on to run their businesses are moving forward all the time."
 
Second Quarter Business Highlights
Concerto Software Expands Contact Center Offerings by Acquiring CenterForce Technologies Concerto Software acquired all assets and certain liabilities of CenterForce Technologies on April 26, 2004. CenterForce's performance optimization solutions add complementary technology to Concerto Software's current stable of products, and will help improve the operating efficiency of contact centers' existing customer interaction management (CIM) technology. The acquisition brings four new solutions to Concerto Software's product suite, including RightForce® for Internet-based workforce management; Analyzer(TM) for performance analysis and agent scorecards; Optimizer(TM) for best-time-to-call; and Planner(TM) for workforce planning and forecasting for outbound campaigns. Companies can now look to Concerto Software for its knowledge and capabilities across the contact center, from managing customer interactions across multiple channels to maximizing the power and efficiency of agents through analysis and scheduling. Bob Kelly, formerly CenterForce's CEO, joined Concerto Software as vice president of performance optimization solutions.
 
EnsemblePro's Penetration in Contact Center Market Continues to Grow
Concerto Software recently announced that Computer Sciences Corporation (CSC), New Century Mortgage and GTL Limited, among many others, have selected or have implemented EnsemblePro for unified customer interaction management. CSC decided to implement EnsemblePro to increase contact center productivity by utilizing a single platform for services such as interactive voice response (IVR), inbound skills-based routing, outbound dialing and unified reporting. For New Century Mortgage, EnsemblePro will manage call-flow and routing for a 150-seat contact center, a blended inbound/outbound environment that handles collections activities and general customer service inquiries. GTL Limited, one of the largest contact centers in India with more than 1,500 agents, is implementing EnsemblePro to unify inbound and outbound voice, email and Web functionality in order to better manage customer interactions across these communication channels.
 
Concerto Software Bolsters Partnership Program Technology partnerships remained an important piece of Concerto's strategy to meet the diverse needs of today's contact center. Concerto Software and Rockwell FirstPoint Contact, a global provider of complete call and contact center solutions, recently formed a strategic technology and business partnership. The partnership stems from an increasing need in the contact center market for solutions that integrate outbound dialing and inbound call routing functionality. To meet this need, the companies will develop an integration between Concerto Software's comprehensive outbound customer contact solution, Unison, and Rockwell FirstPoint Contact's inbound contact management platform, FirstPoint Enterprise.
 
In June, Concerto Software forged a partnership with Onyx® Software Corp. (Nasdaq: ONXS), a worldwide leader in successful customer relationship management (CRM), to promote the benefits of CIM and CRM. The combination of Onyx and Concerto Software solutions can help users easily access CRM data while interacting with customers across all communication channels, enabling them to deliver appropriate service based on customer value.
 
About Concerto Software
Concerto Software, Inc. is a proven and reliable provider of contact center solutions that help companies better manage customer interactions via voice, email, the Web and fax. With multiple strengths including financial stability, talented people, innovative technology, more than 20 years of industry expertise and a singular focus on the contact center Concerto Software is a trusted partner to companies across the globe. Concerto Software was selected by leading industry analyst firm, Frost & Sullivan, as the sole recipient of its Contact Center Company of the Year Award in 2003 and 2004, and is also the only company to earn this distinction two years running. Concerto Software is headquartered in Westford, Massachusetts, with operations across the Americas, Europe and Asia Pacific. For more information, visit www.concerto.com.
 
Note: Concerto Software is a trademark of Concerto Software, Inc. All other trademarks are the property of their respective owners.