Pleasanton, CA (February 24, 2004) FrontRange Solutions USA Inc. (Company
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Studies), a global leader in the Small-to-Mid-Enterprise (SME) and distributed enterprise markets, reported an increase in Revenues, from $16.4 million in fiscal Q1 to $18.0 million in the second quarter, or a sequential increase of 10% . In addition to a surge in revenues, FrontRange also reported an increase in Operating Income to $1.5 million, or 8.4% of revenue.
“We are pleased with our performance during our second quarter,” said FrontRange CEO Michael McCloskey. Our sequential revenue growth, combined with strong growth in our license revenues, is a strong indication of increased customer adoption of our solutions. We have accomplished this growth while achieving the profitability objectives we set in being one of the premier companies in the industry.”
“The results we are beginning to see are a validation of the strategy we started to implement nine months ago,” McCloskey added. “We’re focused on delivering families of solutions specifically developed for unique market segments within the SME and Distributed Enterprise market. In addition to products that help organizations manage a wide range of business opportunities, we’re working to provide complete Service Management capabilities to IT and Technical Support Centers within the SME and Distributed Enterprise market.”
Vice President of Products, Kevin J. Smith, noted that, “We’re starting to see the result of our renewed focus on meeting real customer needs. That focus—and a conscious effort to work closely with our partners—is accelerating our ability to deliver improvements to our existing product lines and create new products that will address customer needs in the future.”
Highlights for the recent quarter included:
• Customer wins: New customers from Quarter 2 include: Baltimore Sun, Blue Shield of California, BMW, Sylvania, Boeing Credit Union, Brother Commercial, DeltaNet, EDS, Exel Australia, Ford Motor Company, Georgia Administration Office of the Courts, INVISTA (DuPont, China), ITG, Ministry of Economic Development NZ, National Missile Battle Defense Lab, NSC Enterprise Solutions, Office Depot, Public Company Accounting Oversight Board, Seattle Monorail Project, Shred It Canada, Syntegra, University of Michigan, Vision Service Plan, Vogue Communications, Volvo LB Smith, and the Wisconsin Supreme Court.
• Strengthened management team: Significant hires include:
o David R. Smith as Vice President of Sales for the Americas. David was previously Vice President North/South Americas Sales at 3Com Corporation. Prior to his roles at 3Com, Smith was Area Sales Director for Applications with Oracle Corporation
o Software development veteran Keith Barr as Vice President of Product Development. The former co-founder, President and CEO of Echopass Corp, Barr architected their hosted solution and services. Prior to Echopass, Barr was CIO of Sento, where he orchestrated the creation of an outsourced services division. Prior to Sento, and as CIO of Sykes EMEA, Barr developed outsourcer call center technology platform and pioneered computer telephony integration (CTI)
o Patrice Tollenaere, Senior Director of Development. Tollenaere was previously CTO, Vice President of Engineering for Network Associates, Magic Solutions Business Unit
• Opening of a new advanced development office in Pleasanton, CA: In addition to its Colorado Springs development office, FrontRange has opened a significant development office in Silicon Valley. Because the Bay area represents the leading edge in software development and the highest concentration of outstanding talent and thought leadership, the opening of the Pleasanton office demonstrates FrontRange’s continued commitment to market leading development. Having a presence in the Bay Area allows FrontRange to attract top development talent, and enables them to keep a finger on the pulse of the market.
• Significant releases of HEAT and GoldMine products: Demonstrating commitment to existing product lines, and continuing to develop products that meet customer needs, FrontRange released HEAT 8.0 and GoldMine 6.5 –with significant additional functionality and usability.
• Opening of China office and first mainland China HEAT opportunity: In November, FrontRange opened offices in Shanghai, joined by three Value Added Resellers. NCS China and SCS China resell HEAT products in Shanghai and Southern China, and AcroChina sells in Beijing and Northern China. FrontRange signed its first deal for localized HEAT in China with INVISTA (built on DuPont innovation).
• Siebel displacement: HEAT was selected by a global company that serves a large world-wide client base that includes the Big 4 accounting firms and 70 percent of Fortune 500 firms, to replace their Siebel system. The move allowed the company to use one part-time administrator instead of the seven full-time people previously needed—and saved the company $500,000 per year. (Read the case study at: http://www.frontrange.com/isolutions/pdfs/RIA_caseStudy.pdf
• Operational profits: (See P&L summary on following page)
About FrontRange Solutions
FrontRange Solutions develops award-winning software and solutions that are used by more than 130,000 companies and 1.2 million users worldwide to manage a wide variety of business relationships and provide exceptional service. FrontRange product families include GoldMine, for business relationship management, team-based contact management and sales forces automation solutions; and HEAT, for complete service management including Help Desk, Knowledge Management, Asset Management and Service Level Management. FrontRange products are designed specifically for small- to mid-sized enterprises and distributed enterprise organizations. Customers representing 44% of the Fortune 100 and 76% of the FTSE 100, include Coca-Cola, Shell Oil, Prudential Securities, Électricité de France, Mack Trucks, and Turner News Network. For more information, call (800) 776-7889 or visit www.frontrange.com.
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