FrontRange Reports Sequential Increase in Revenues and Profits; Announces 5th Consecutive Quarter of Sequential Revenue and Profit Growth.PLEASANTON, Calif. -- Q3 FY 2005 License Revenues Increase Over 29% Over Prior Year; Profits Increase 50% Over Prior Year FrontRange Solutions This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. , a global leader in service management, CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. , and voice application solutions for the small-to-medium enterprise (SME (1) (Small and Medium-sized Enterprise) See SMB. (2) (Subject Matter Expert) An individual who is well-versed in the policies and procedures of a particular department or division. ) and distributed enterprise markets, reported an increase in revenues and profits for the quarter ended January 31, 2005. License revenue increased 29% over the prior year, while total revenue for the quarter increased to $20.7 million, an increase of over 13% from the $18.3 million for the three months ended December 31, 2003. In addition to an increase in revenue, FrontRange also reported an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $2.3 million, an increase of 50% over the three months ended December 31, 2003. Michael McCloskey, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of FrontRange, said: "The results of the quarter reflect the progress we have made in reshaping FrontRange into a leading provider of service management, CRM, and voice applications. During the quarter, we have grown license revenues by 29%, operating profit by more than 50% and total revenues by 13% over the prior year. Our HEAT(R) and GoldMine(R) products continue to attract customers at a rapid clip, and our product and geographic expansions are providing future opportunities for growth." "I am very pleased with our 29% increase in license revenues over the prior year. License revenue growth is one of the most important measures of the health of a software company, and is a strong indication of the value we are delivering to our customers. Customers continue to be excited about our product roadmap enhancements, and the number of new products that we will be bringing to market during the next few quarters. Our commitment to the customer, combined with our stronger focus on going to market through our channel partners, has bolstered our ability to maintain and improve license sales," McCloskey stated. "Our business model performance continues to be strong, as evidenced by a 50% increase in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and a 65% increase in research and development. This increase in R&D is helping us to deliver new products and enhancements to market, as well as provide localized products for international markets," stated McCloskey. He added: "We continue to make progress on our product delivery plans, as evidenced by our new HEAT 8.3 release, which offers significant new functionality as well as full integration to our new ITIL (Information Technology Infrastructure Library, www.itil.co.uk) One of the more comprehensive as well as non-proprietary and publicly available sets of guidelines for "best practice" IT services management, owned by the British Office of Government Commerce (OGC). modules. This approach allows our customers to retain the investment they have made, while providing significant additional functionality based on best practices." "We're also pleased to announce our new platform and ITSM ITSM Information Technology Service Management ITSM Information Technology Security Manager ITSM Indirect Tensile Stiffness Modulus ITSM Information Technology System Management ITSM Ibm Tivoli Storage Manager ITSM It Service Management application," continued McCloskey. "This new product is based upon the ITIL framework, and is being well received by our customers. Although only recently released late in our quarter, we have already won significant contracts from both current and new customers." John Hillyard, CFO See Chief Financial Officer. of FrontRange, said: "I'm pleased to see our business strategy reflected in our financial model. Our channel strategy focus is resulting in higher overall revenues, increased investment in R&D is fueling the growth of our current and new product offerings, and increased sales and marketing efficiency are all contributing to FrontRange's improved financial performance." Highlights since our last financial release: --FrontRange Continues Strong License Revenue Growth: License revenue grew sequentially for the fifth consecutive quarter, representing a 29% increase over the prior year. --Customer Momentum Continues: FrontRange added 358 new customers during the period, including 237 new GoldMine Corporate Edition customers, 111 new customers for its HEAT product line, as well as five new IP Contact Center customers and five new customers for its IT Service Management (ITSM) product. This includes 202 new customers in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , 120 in EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. , and 36 in Asia Pacific. --Customer Wins for the Period Include: --North America -- ABB n. 1. Among weavers, yarn for the warp. Hence, Noun 1. ABB - an urban hit squad and guerrilla group of the Communist Party in the Philippines; formed in the 1980s , NRT NRT Nicotine Replacement Therapy NRT Norm-Referenced Test NRT near real time NRT Non-Real-Time NRT National Response Team NRT Tokyo, Japan - Narita (Airport Code) NRT Net Registered Tonnage , Northern Pipeline, Thomason Hospital Thomason Hospital is a non-profit public hospital in El Paso, Texas. Thomason is licensed by the State of Texas and accredited by the Joint Commission. 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Cards Sdn Bhd SDN BHD Sendirian Berhad (Malay equivalent to incorporated) , Indomobil Sukses International, Visy Board Pty Ltd PTY LTD Propriety Limited (company structure in Australia) , Leading Edge Group, SKYCITY Ltd, Computer Systems Advisors, JMT JMT John Muir Trail (Yosemite National Park, California) JMT John Muir Trust (UK wild land charity) JMT Jugendmedientage JMT Johnson, Mirmiran, & Thompson (Sparks, Maryland) Network Services, Kotak Mahindra Bank This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. Ltd --EMEA -- Daimler Chrysler, LOT Polish Airlines LOT Polish Airlines (Polskie Linie Lotnicze LOT, short name PLL LOT) is the national airline/flag carrier of Poland, based in Warsaw. It operates scheduled passenger and cargo services. Domestic services link Warsaw with ten cities. , Datakraft, AKB AKB Aargauische Kantonalbank (German) AKB Atka Airport (Alaksa) AKB Apple Knowledge Base Bank Elektronika, Siberia Avia Oil, Armena Mobile Provider, Telewest, Marlboro Sterling, Britvic, Business Intelligence Direct Ltd, LPT LPT - /L-P-T/ or /lip'it/ or /lip-it'/ Line printer. Rare under Unix, more common among hackers who grew up with ITS, MS-DOS, CP/M and other operating systems that were strongly influenced by early DEC conventions. Ltd, O'Neill & Brennan, Marketsafe.com/Creditsafe, Urbium, Sasfin Bank, University of Cape Town “UCT” redirects here. For other uses, see UCT (disambiguation). , Dawn Wing Couriers, South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. Endangered Wildlife Trust The Endangered Wildlife Trust is a South African environmental organisation for the conservation of threatened species and ecosystems in southern Africa. Founded in 1973 the EWT implements conservation research and action programmes, supports biodiversity and ecosystem , Cotlands, South Africa Department of Housing --Continued Expansion of International Operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. : FrontRange continues to make significant investment in its geographic expansion plans, including its Latin American, Asian and European operations. This includes substantial new investment in personnel, product localizations and marketing initiatives. Several new languages were added during the quarter, including Russian, German, Polish, and Spanish. --FrontRange CEO Named to Industry Leadership List: The December issue of CRM Magazine featured McCloskey in its annual article recognizing "dynamic leaders." CRM recognized him as "One to Watch" within the industry's "Influential Leader" category, a distinction that "reveals those who, by their words and actions, have made a significant impact either within their company or on the industry over the past year," according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the magazine's editors. --Expanded Leadership Team: The addition of Jim O'Gara as Vice President, Worldwide Business Development for FrontRange shows the company's commitment to strengthening partner and strategic relationships. With over 28 years in sales, channel sales, alliance development and executive management positions, Jim joins FrontRange after leading channel and alliance efforts at Digital Equipment, Informix and AltaVista. --FrontRange Partner Expansion Continues: FrontRange continued to successfully sign new partners during the quarter, expanding its market coverage. This includes partners in new market areas as well as new geographic locations such as Poland and Russia. --GoldMine Receives CIS Cis (sĭs), same as Kish (1.) (1) (CompuServe Information Service) See CompuServe. (2) (Card Information S (R) magazine's 2004 Product of the Year Award: FrontRange's GoldMine solution is a recipient of a 2004 Product of the Year Award presented by Technology Marketing Corporation (TMC TMC Technology Marketing Corporation (Norwalk, Connecticut) TMC Texas Medical Center (Houston, TX) TMC Traffic Message Channel TMC The Movie Channel TMC Traffic Management Center (R))'s Customer Inter@ction Solutions(R) magazine (www.cismag.com), a preeminent publication in the CRM, call center and teleservices industries since 1982. --FrontRange Launches New ITIL-Compatible ITSM 5.0: FrontRange ITSM modules are designed to improve the performance of IT and support organizations for new customers as well as offer increased functionality for HEAT customers. Built on the Microsoft(R) .NET platform, the solution offers advanced technology capabilities, and is the most integrated solution adopting IT Infrastructure Library (ITIL(R)) best practice standards in the marketplace. Seven ITIL-compatible modules that are launched from a single common architecture means that all applications work from a single database and can easily exchange information -- simplifying reporting and integration across all levels of the business. The eight service management modules that comprise the new ITSM product are: --Incident Management --Problem Management --Change Management --Release Management --Availability Management --Configuration Management --Service Level Management --Self Service --New HEAT 8.3 delivers enhanced support for IT Best Practices and ITIL Compatibility: HEAT 8.3 allows customers to provide top quality stand-alone service management and also to integrate easily with modules from the new FrontRange ITSM solution at a customer's pace. The integration capability of HEAT 8.3, which also is built on the Microsoft .NET See .NET. platform, means more than 8,000 customers worldwide already using the FrontRange HEAT product line can extend their current functionality by adding the new ITIL based ITSM modules with no change to their current environments. Available to current users and new customers immediately, HEAT 8.3 is a low-risk way to adopt ITIL processes readily and rapidly, resulting in standardized processes that increase efficiency and lower service desk costs.
FrontRange Solutions
Combined Operating Group P&L's(a)
$'s in Thousands
Nov 04 - Jan 05 Oct 03 - Dec 03 PY Var
-----------------------------------------------
$ % $ % $ %
-----------------------------------------------
License Revenue 9,005 43.5% 6,963 38.1% 2,041 29.3%
Services Revenue 1,778 8.6% 2,066 11.3% (288)-13.9%
Maintenance Revenue 9,918 47.9% 9,241 50.6% 678 7.3%
-----------------------------------------------
Total Revenue 20,701 100.0% 18,270 100.0% 2,431 13.3%
-----------------------------------------------
Product Costs 933 10.4% 1,239 17.8% 305 24.6%
Services Costs 1,506 84.7% 1,431 69.3% (74) -5.2%
Maintenance Costs 1,791 18.1% 1,639 17.7% (153) -9.3%
-----------------------------------------------
Total Cost of Sales 4,230 20.4% 4,309 23.6% 78 1.8%
-----------------------------------------------
% Gross margin 79.6% 76.4%
Sales 5,745 27.8% 5,276 28.9% (469) -8.9%
Marketing 2,014 9.7% 2,628 14.4% 613 23.3%
R&D 4,254 20.5% 2,576 14.1% (1,678)-65.1%
G&A 2,177 10.5% 1,962 10.7% (215)-11.0%
-----------------------------------------------
Total Operating
Costs 14,190 68.5% 12,441 68.1% (1,749)-14.1%
-----------------------------------------------
Operating Profit 2,281 11.0% 1,520 8.3% 761 -50.0%
Jul 03 - Oct 03 - Jan 04 -
Sep 03 Dec 03 Mar 04
1Q04 2Q04 3Q04
------ ------ ------
$ % $ % $ %
----------- ----------- -----------
License Revenue 5,972 35.5% 6,963 38.1% 7,554 39.9%
----- ----- -----
Services Revenue 2,175 12.9% 2,066 11.3% 1,979 10.5%
Maintenance Revenue 8,672 51.6% 9,241 50.6% 9,382 49.6%
----- ----- -----
Total Revenue 16,819 100.0% 18,270 100.0% 18,915 100.0%
------ ------ ------
Sequential Qtr Growth 8.6% 3.5%
Product Costs 1,107 18.5% 1,239 17.8% 1,015 13.4%
Services Costs 1,444 66.4% 1,431 69.3% 1,451 73.3%
Maintenance Costs 1,642 18.9% 1,639 17.7% 1,834 19.5%
----- ----- -----
Total Cost of Sales 4,193 24.9% 4,309 23.6% 4,300 22.7%
----- ----- -----
% Gross margin 75.1% 76.4% 77.3%
Sales 5,625 33.4% 5,276 28.9% 4,965 26.2%
Marketing 3,207 19.1% 2,628 14.4% 3,011 15.9%
R&D 2,511 14.9% 2,576 14.1% 2,817 14.9%
G&A 2,079 12.4% 1,962 10.7% 2,019 10.7%
----- ----- -----
Total Operating Costs 13,422 79.8% 12,441 68.1% 12,811 67.7%
------ ------ ------
Operating Profit (796) -4.7% 1,520 8.3% 1,803 9.5%
Apr 04 - Aug 04 - Nov 04 -
Jun 04 Oct 04 Jan 05
4Q04 2Q05 3Q05
------ ------ ------
$ % $ % $ %
----------- ----------- -----------
License Revenue 8,457 42.6% 8,680 43.0% 9,005 43.5%
----- ----- -----
Services Revenue 2,026 10.2% 1,784 8.8% 1,778 8.6%
Maintenance Revenue 9,384 47.2% 9,699 48.1% 9,918 47.9%
----- ----- -----
Total Revenue 19,866 100.0% 20,163 100.0% 20,701 100.0%
------ ------ ------
Sequential Qtr Growth 5.0% 1.5% 2.7%
Product Costs 862 10.2% 1,043 12.0% 933 10.4%
Services Costs 1,569 77.5% 1,493 83.7% 1,506 84.7%
Maintenance Costs 1,772 18.9% 1,854 19.1% 1,791 18.1%
----- ----- -----
Total Cost of Sales 4,203 21.2% 4,390 21.8% 4,230 20.4%
----- ----- -----
% Gross margin 78.8% 78.2% 79.6%
Sales 6,126 30.8% 5,318 26.4% 5,745 27.8%
Marketing 2,016 10.1% 2,645 13.1% 2,014 9.7%
R&D 3,422 17.2% 3,430 17.0% 4,254 20.5%
G&A 2,041 10.3% 2,236 11.1% 2,177 10.5%
----- ----- -----
Total Operating Costs 13,605 68.5% 13,629 67.6% 14,190 68.5%
------ ------ ------
Operating Profit 2,058 10.4% 2,144 10.6% 2,281 11.0%
(a) Excludes immaterial holding company expenses. About FrontRange Solutions FrontRange Solutions develops award-winning software and solutions used by more than 130,000 companies and over 1.2 million users worldwide to manage a wide variety of business relationships and provide exceptional service. FrontRange product families, designed specifically for small-to-medium enterprise (SME) and distributed enterprise organizations include: GoldMine(R) for business relationship management, team-based contact management and sales forces automation solutions; IT Service Management with HEAT(R) and ITIL standards-based modules for complete service management; and IP Contact Center for reduced telephony costs and increased agent productivity, streamlined customer service and communications; and Infrastructure Management, which provides the ability to optimize the full lifecycle of a company's assets. Customers representing 44 percent of the Fortune 100 and 76 percent of the FTSE FTSE A company that specializes in index calculation. Although not part of a stock exchange, co-owners include the London Stock Exchange and the Financial Times. Notes: The FTSE is similar to Standard & Poor's in the United States. 100, include Coca-Cola, Shell Oil, Prudential Securities, Electricite de France, Mack Trucks Mack Trucks is one of the world's leading truck-manufacturing companies. It is now a subsidiary of AB Volvo, Volvo Group. The company's headquarters are in Allentown, Pennsylvania, in the Lehigh Valley region of the state. , Campbell Soup, Avaya, Bechtel Corp, Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , and Turner News Network. For more information, call 800-776-7889 or visit www.frontrange.com. GoldMine, HEAT and other FrontRange Solutions products, brands and trademarks are property of FrontRange Solutions USA Inc. and/or its affiliates in the United States and/or other countries. Other products, brands and trademarks are property of their respective owners/companies. |
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