Y2G Associates Reports Improving Software Industry Operating Metrics are Fueling Consolidation Activity.Business Editors/High-Tech Writers ATLANTA--(BUSINESS WIRE)--June 24, 2003 Y2G Y2G Year 2 Grand (2000) Associates, the leading provider of tools, technology and services that improve the performance of software companies worldwide, is reporting that software industry operating performance metrics Performance metrics are measures of an organizations activities and performance. Performance metrics should support a range of stakeholder needs from customers, shareholders to employees [1]. over the past year and most recent quarters are improving. Cash flow and cash management challenges have driven operational improvements within software companies, while organic growth and valuations of these same companies are gaining at slower rates than previous years. Y2G acknowledges that the industry focus on: (1) capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. ; and (2) returns on outside investments are significant factors driving the recent consolidation activities within the Enterprise Software market. "Over the past year, the decline in cash flow fundamentals, improvements in operating performances, and gains in profitability indices are improving at a slower rate than market capital valuations," said David Cahn, 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. , Y2G Associates. "While performance metrics have improved on average in the single digits, capital spending has seen a 60 percent increase, which is fueling a market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. growth of approximately 28 percent." Software industry executives and financial industry analysts employ Y2G Associates' Competitive Performance Calculator (CPC (1) (Central Processing Complex) An IBM mainframe that has two or more central processors (CPs) that share memory. It is the collection of processors, memory and I/O subsystems manufactured with a single serial number, typically all contained in one cabinet. ) as an industry "watchdog" and decision support tool. The CPC utilizes metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. that are based on the continuous performance tracking of over 550 software companies spanning enterprise applications, tools and infrastructure. Y2G's CPC further segments this group of software companies by both size and maturity. Clients of Y2G Associates access the CPC to accelerate cross-functional operational improvements within their internal business processes. Y2G Associates clients also use the CPC to identify potential merger and acquisition targets; or, potential buyers as part of an exit strategy. Y2G also integrates the CPC tool into its other outsourced service offerings for marketing, sales, channel and alliance management, and research and development. About Y2G Associates Y2G Associates is the leading provider of tools, technology and services that improve the performance of software companies worldwide. Their efforts are focused on three key performance indicators Key Performance Indicators (KPI) are financial and non-financial metrics used to quantify objectives to reflect strategic performance of an organization. KPIs are used in Business Intelligence to assess the present state of the business and to prescribe a course of action. : Capital Optimization, Growth Acceleration and Operational Efficiencies. Launched in 2001, with headquarters in Atlanta, Georgia, Y2G Associates team is comprised exclusively of technology executives with proven track records and decades of software industry leadership and implementation experience. Y2G Associates currently has offices in Georgia, Arizona, and Washington, DC. To learn more about Y2G's Competitive Performance Calculator, visit www.Y2GAssociates.com, or contact Karen Weidenaar at (770) 437-0361 or KWeidenaar@Y2GAssociates.com. |
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