Susan Stoga/Kim Durk Carson Stoga Communications 847/726-1100 or 773/327-9093
For Immediate Release
Company Plans To Focus on Sales, Marketing and Product Development
SCOTTSDALE, Ariz. (March 7, 2001) KhiMetrics, Inc., developer of the first comprehensive revenue management solution designed specifically for the retail industry, today announced it has raised $12.4 million in its second round of financing.
Boston Capital Ventures, now joining the board of directors, led this round of financing with participation from Oracle Corporation (Nasdaq: ORCL), Koch Ventures, venture arm for the second largest private US company, Crown Advisors as well as increased participation from current investors RWI Group, Telos Venture Partners, Sand Hill Financial Company and private investors Donald L. Lucas and B.J. Cassin.
KhiMetrics, which launched its Retail Revenue Management Application Suite in September, 2000, will use the funding to expand sales and marketing staff and programs, accelerate development and expand their existing product offering across the supply chain. The firm recently doubled its office space in the Scottsdale area to accommodate its growth, primarily in the software development arena. Current KhiMetrics customers include: OSCO Drug (division of Albertsons), H.E. Butt Grocery Company, Safeway, Tops Markets (division of Royal Ahold) and Internet superstore buy.com. KhiMetrics also has implementations in progress with numerous other leading retailers.
“Our second round of financing provides us with the capital needed to secure our market leadership position with our retail revenue management platform and expand the core technology across the supply chain, providing solutions that achieve quantum improvements in profitability for both retailers and manufacturers,” said Brent Lippman, president and CEO of KhiMetrics.
“KhiMetrics continues to demonstrate clear market leadership and has made enormous progress in establishing a new application category for retailers and manufacturers, called revenue management,” said Donald A. Lucas, existing board member and managing general partner of RWI Group. “ We attribute that success to a technology that is years ahead of competition and a management team focused on creating value for its clients.”
According to an article by Greg Girard published in the AMR Research Report on Retail E-Business for September 2000, “retail Revenue Management (RM) applications and services will have a dramatic impact on retail performance as the introduction of optimization technology, integrated with other enterprise supply chain processes, advances best practice revenue management.” This report also states that, “the potential rewards from more effective revenue management are indisputable: revenue and market share growth, margin improvement and customer value management.” “KhiMetrics has been successful in quickly establishing a leadership position in the marketplace for revenue management and price optimization solutions because of their solution depth, industry expertise and management focus,” said Alex Wilmerding, principal of Boston Capital Ventures. “We have been very impressed by the management team’s experience in the retail sector and believe that their proprietary solution will not only lead, but define the space.”
KhiMetrics’ current solution allows traditional, multi-channel and Internet retailers to implement pricing strategies enterprise-wide and generate recurring incremental revenue streams and double-digit net profit improvements. The patented application suite, which simplifies the management of complex price offerings, allows retailers to develop a price image relative to competition, measure how customers value products and align pricing with profit, revenue and competitive positioning goals.
About KhiMetrics Based in Scottsdale, Ariz., KhiMetrics is the first software company to deliver a comprehensive retail revenue management solution proven to maximize revenue and profitability. Called KhiMetrics’ Retail Revenue Management application suite, it enables traditional, multi-channel and Internet retailers to optimize prices and promotions to create recurring incremental revenue streams and double-digit net profit improvements. The RRM application suite is a new generation of patented model-based pricing solutions that is based on a sophisticated modeling of enterprise variables including price, promotion, customer demand, profit, revenue and price image. KhiMetrics’ mission is “to unlock billions in hidden retail revenue.” For more information, contact the company at 480/609-2833 or visit www.khimetrics.com.
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