FrontRange Solutions Announces Continued Revenue Growth; Q1 FY 2006 Results Mark Seven Consecutive Quarters of Sequential Revenue and Profit Growth; Profit Increases 15% Over Prior Year.DUBLIN, Calif. -- 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 growing small and 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 July 31, 2005. Total revenue for the quarter increased to $21.9 million, an increase of more than 10 percent from the $19.9 million for the three months ended June 30, 2004, which is the last comparable period. 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 $2.4 million, an increase of 15 percent over the three months ended June 30, 2004. "Our fiscal Q1 results are a continuation of our solid financial performance, especially considering that this past quarter is traditionally our weakest quarter. FrontRange has now produced seven straight quarters of revenue and profitability growth. We are committed to building a company that delivers steady and sustained growth," said FrontRange 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. Michael McCloskey. "Particularly encouraging was the 15 percent profit growth, while making significant investments in our global services delivery and implementation capability as well as maintaining a healthy R&D spend rate at over 16 percent of revenue." "Notwithstanding the difficult market conditions, we have seen solid momentum with our new product offerings," McCloskey continued. "Since the release of our new 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 product in January 2005, we have signed 74 customers to date. Additionally, our new IP-based contact center product has shown positive traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. with 45 customer signings since inception. Our investment in global services delivery and implementation capability will allow us to deliver world-class, best-of-breed enterprise services to our clients." FrontRange continues to release significant updates to its GoldMine(R), HEAT(R) and FrontRange Contact Center products. Additionally, its major new product, IT Service Management (ITSM), was released at the end of January 2005. "Our customers have embraced the improvements we've made to HEAT and GoldMine, as well as new products like IP Contact Center and IT Service Management that complement HEAT and GoldMine," said Kevin J. Smith, FrontRange vice president of products. "The combined product offerings were designed in response to the needs of our customers and partners. As a result, these solutions enable our customers to proactively address critical initiatives including corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. , IT best practices, 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). and Sarbanes Oxley. Beyond the strong broader market share, we are now the leading provider of distributed ITIL-enabled solutions for the U.S." Highlights since the last FrontRange financial release: --FrontRange adds new customers: FrontRange added 329 new customers during the period: 221 new GoldMine Corporate Edition customers; 66 new customers for its HEAT product line; 11 new IP Contact Center customers; and 31 new customers for its ITSM product. This includes 199 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. , 86 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 44 in Asia Pacific. --Customer wins for the period include: North America -- Miami-Dade County Public Schools, NCCI NCCI National Council on Compensation Insurance (Boca Raton, FL) NCCI National Correct Coding Initiative NCCI National Company for Cooperative Insurance NCCI Namibian Chamber of Commerce and Industry , Bronson Hospital, Winston & Strawn, LLP LLP - Lower Layer Protocol , Morgan, Lewis & Bockius, LLP, Carlyle Group  The of this article or section may be compromised by "weasel words".You can help Wikipedia by removing weasel words. The Carlyle Group is a Washington, D.C. , Software House International, Resolve Corporation, US DOT/RITA/Volpe Center, Adventist HealthCare, Nichols Aluminum, State of North Dakota North Dakota, state in the N central United States. It is bordered by Minnesota, across the Red River of the North (E), South Dakota (S), Montana (W), and the Canadian provinces of Saskatchewan and Manitoba (N). , Gallup Organization, Salt Lake Community College Although the college does not offer four-year degrees, school officials work with the state's other institutions of high learning to ensure that credits are transferable. General education credits may be transferred to any four-year school in Utah including private schools such as , Calgary Regional Health Authority, Apache Apache (əpăch`ē), Native North Americans of the Southwest composed of six culturally related groups. They speak a language that has various dialects and belongs to the Athabascan branch of the Nadene linguistic stock (see Native American Corporation, Fremont Investment & Loan, MedQuist, Inc., Panduit Wiring & Communications, Forrest General Hospital, L & S Associates, Inc.; Asia Pacific -- Industrial and Commercial Bank, Neusoft Park Industrial Development Co., Ltd., SurfControl; 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. -- Brandhouse Beverages, Manguan Local Municipality MUNICIPALITY. The body of officers, taken collectively, belonging to a city, who are appointed to manage its affairs and defend its interests. , National Treasury, Department of Land Affairs, Metrorail Witwatersrand, Enterprise Connection, Africon, E.E. Publishers; Europe -- ItalCementi, Northern Constabulary The Northern Constabulary is the police force responsible for Northern Scotland, covering the council areas of Highland, Na h-Eileanan Siar (the Western Isles), the Orkney Isles and the Shetland Isles, which comprise most of the Highlands and Islands area. . --Market share: FrontRange Solutions held significant market share in 2004 in IT Service Desk solutions for Enterprise Management markets. Based on new license revenue, FrontRange is identified as a Global market leader in the "IT Service Desk for Enterprise Management" market 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. a Gartner, Inc. report entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Market Share: Enterprise Management, Worldwide, 2004." --FrontRange launches new IP Contact Center 5.0: FrontRange IP Contact Center 5.0 (IPCC See IMS Forum. ) is the newest addition to the Communication Management solution family. The new version of FrontRange's Voice Over Internet Protocol-based (VoIP) software suite features Quality Management and integration with other FrontRange product families, including the company's award-winning HEAT, GoldMine Corporate Edition, and the new ITSM modules.
FrontRange Solutions
Combined Operating Group P&L's(a)
$'s in Thousands
May 05 - July 05 Apr 04 - June 04 PY Var
---------------- ---------------- ------
$ % $ % $ %
--- --- --- --- --- ---
License Revenue 8,851 40.5% 8,457 42.6% 394 4.7%
Services Revenue 2,225 10.2% 2,026 10.2% 199 9.8%
Maintenance Revenue 10,801 49.4% 9,384 47.2% 1,417 15.1%
------------------------------------------------
Total Revenue 21,877 100.0% 19,866 100.0% 2,011 10.1%
------------------------------------------------
Product Costs 880 9.9% 862 10.2% (18) -2.1%
Services Costs 2,383 107.1% 1,569 77.5% (814) -51.9%
Maintenance Costs 1,523 14.1% 1,772 18.9% 249 14.1%
------------------------------------------------
Total Cost of
Sales 4,786 21.9% 4,203 21.2% (583) -13.9%
------------------------------------------------
% Gross margin 78.1% 78.8%
Sales 6,361 29.1% 6,126 30.8% (235) -3.8%
Marketing 2,651 12.1% 2,016 10.1% (635) -31.5%
R&D 3,525 16.1% 3,422 17.2% (103) -3.0%
G&A 2,195 10.0% 2,041 10.3% (154) -7.5%
------------------------------------------------
Total Operating
Costs 14,732 67.3% 13,605 68.5% (1,127) -8.3%
------------------------------------------------
Operating Profit 2,360 10.8% 2,058 10.4% 301 14.6%
================================================
Jul 03 - Oct 03 - Jan 04 - Apr 04 -
Sep 03 Dec 03 Mar 04 Jun 04
1Q04 2Q04 3Q04 4Q04
---- ---- ---- ----
$ % $ % $ % $ %
--- --- --- --- --- --- --- ---
License Revenue 5,972 35.5% 6,963 38.1% 7,554 39.9% 8,457 42.6%
Services Revenue 2,178 12.9% 2,067 11.3% 1,979 10.5% 2,026 10.2%
Maintenance
Revenue 8,672 51.6% 9,241 50.6% 9,382 49.6% 9,384 47.2%
----- ----- ----- -----
Total Revenue 16,821 100.0%18,271 100.0%18,915 100.0%19,866 100.0%
------ ------ ------ ------
Quarterly Revenue
Growth 8.6% 3.5% 5.0%
Product Costs 1,107 18.5% 1,239 17.8% 1,015 13.4% 862 10.2%
Services Costs 1,446 66.4% 1,433 69.3% 1,451 73.3% 1,569 77.5%
Maintenance Costs 1,642 18.9% 1,639 17.7% 1,834 19.5% 1,772 18.9%
------ ------ ------ ------
Total Cost of
Sales 4,196 24.9% 4,310 23.6% 4,300 22.7% 4,203 21.2%
------ ------ ------ ------
% Gross
margin 75.1% 76.4% 77.3% 78.8%
Sales 5,625 33.4% 5,276 28.9% 4,965 26.2% 6,126 30.8%
Marketing 3,207 19.1% 2,628 14.4% 3,011 15.9% 2,016 10.1%
R&D 2,511 14.9% 2,576 14.1% 2,817 14.9% 3,422 17.2%
G&A 2,079 12.4% 1,962 10.7% 2,019 10.7% 2,041 10.3%
------ ------ ------ ------
Total Operating
Costs 13,422 79.8%12,441 68.1%12,811 67.7%13,605 68.5%
------ ------ ------ ------
Operating Profit (796) -4.7% 1,520 8.3% 1,803 9.5% 2,058 10.4%
====================================================
Aug 04 - Nov 04 - Feb 05 - May 05 -
Oct 04 Jan 05 Apr 05 July 05
2Q05 3Q05 4Q05 1Q06
---- ---- ---- ----
$ % $ % $ % $ %
--- --- --- --- --- --- --- ---
License Revenue 8,680 43.0% 9,005 43.5% 9,225 42.8% 8,851 40.5%
Services Revenue 1,784 8.8% 1,778 8.6% 2,343 10.9% 2,225 10.2%
Maintenance
Revenue 9,699 48.1% 9,918 47.9%10,001 46.4%10,801 49.4%
------ ------ ------ ------
Total Revenue 20,163 100.0%20,701 100.0%21,569 100.0%21,877 100.0%
------ ------ ------ ------
Quarterly Revenue 1.5% 2.7% 4.2% 1.4%
Growth
Product Costs 1,043 12.0% 933 10.4% 1,010 10.9% 880 9.9%
Services Costs 1,493 83.7% 1,506 84.7% 1,836 78.4% 2,383 107.1%
Maintenance Costs 1,854 19.1% 1,791 18.1% 1,525 15.2% 1,523 14.1%
------ ------ ------ ------
Total Cost of
Sales 4,390 21.8% 4,230 20.4% 4,371 20.3% 4,786 21.9%
------ ------ ------ ------
% Gross
margin 78.2% 79.6% 79.7% 78.1%
Sales 5,318 26.4% 5,881 28.4% 6,793 31.5% 6,361 29.1%
Marketing 2,645 13.1% 2,059 9.9% 2,972 13.8% 2,651 12.1%
R&D 3,430 17.0% 4,253 20.5% 3,358 15.6% 3,525 16.1%
G&A 2,236 11.1% 2,041 9.9% 1,739 8.1% 2,195 10.0%
------ ------ ------ ------
Total Operating
Costs 13,629 67.6%14,235 68.8%14,862 68.9%14,732 67.3%
------ ------ ------ ------
Operating Profit 2,144 10.6% 2,236 10.8% 2,336 10.8% 2,360 10.8%
====================================================
(a) Excludes immaterial holding company expenses. Additionally,
excludes a one-time non-cash lease hold improvement amortization
charge of $373k in Q4 FY05 related to calendar years 2001, 2002, 2003,
2004 and 2005.
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 force automation Automating the sales activities within an organization. A comprehensive SFA package provides such functions as contact management, note and information sharing, quick proposal and presentation generation, product configurators, calendars and to-do lists. solutions; IT Service Management (ITSM) with HEAT(R) and ITIL standards-based modules for complete service management; Communication Management, including IP Contact Center (IPCC) for reduced telephony costs and increased agent productivity, streamlined customer service and communications; and Infrastructure Management (IM), 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 United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and/or other countries. Other products, brands and trademarks are property of their respective owners/companies. |
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