Prescient Systems Nearly Triples Revenues Year Over Year Through First Half 2002
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License Revenues Soar as Supply Chain Planning Company Demonstrates Fourth Straight Quarter of Profitability
West Chester, PA - August 12, 2002 - Prescient Systems, known for delivering proven supply chain planning solutions to the consumer products industry, today announced strong results for the first half of 2002, including overall revenue growth of 180 percent and an exponential increase in license revenue over the same period a year ago.
While Prescient is a privately held company, President and Chief Executive Officer Jane Hoffer said it was important to show that the current economic downturn wasn`t affecting all technology companies.
"At Prescient, we`ve been able to sustain strong growth despite what`s happening to other enterprise software vendors," Hoffer said. "We`re opposing the trend for a few very simple reasons: Stringent focus on consumer products manufacturers, a repeatable and sustainable delivery model, and proven low-risk return on investment. That combination makes Prescient the attractive choice for supply chain planning solutions."
Based on numbers for the year-to-date period ending June 30, 2002, Prescient is on track to increase overall revenues by 92 percent for 2002 vs. 2001 and to grow license revenues by more than 150 percent year over year. The company continues to see a healthy revenue split between software and services. Unlike most enterprise application vendors, software license revenues account for 56 percent of the total, consulting services for 23 percent and 20 percent for ongoing maintenance and support services.
"The revenue split demonstrates a very strong selling point for Prescient," Hoffer said. "Our software is specifically designed for consumer products companies, meaning our clients don`t have to pay for consulting and implementation services to retro-fit a product for their business. As a result, both the duration and cost of implementation are substantially lower than our competitors, creating a real opportunity for our client to realize benefits in less than 100 days."
Prescient`s strong growth was fueled by a series of existing client upgrades and new client wins, including new implementations with companies such as The Dial Corporation, Wells` Dairy, R.F. Brookes, RHM Frozen Foods and Dairycrest.
Other highlights of the first half of 2002 included:
* Two significant changes on its senior management team: The promotion of Alec Elmore to the new position of vice president of client services and the hiring of Kelly Vizzini as vice president of marketing. (Please see related press release, Prescient Systems Expands Senior Executive Team to Meet Growing Client Demand, 8/12/2002.)
* An expanded partnership with Ross Systems (NASDAQ: ROSS), a leading provider of enterprise management software and e-business solutions for process manufacturers, that will enable Ross to re-sell the Prescient XEi solution globally as part of its iRenaissance enterprise suite of software solutions. Prescient and Ross already share market synergies with their mutual expertise in process industries such as consumer products.
* The newest version of its Prescient XEi supply chain planning solution and the introduction of Sales & Operations Planning (S&OP). S&OP is a core component of world-class manufacturing, enabling companies to track sales and operational activities and map deviations from the corporate plan.
* Hoffer was named a regional finalist in the prestigious Ernst & Young Entrepreneur of the YearŽ award program for the Philadelphia area. Each year through the awards, Ernst & Young seeks to recognize great business achievements around the world.
About Prescient Systems
Prescient Systems is the leader in providing proven supply chain planning solutions developed specifically for the needs of consumer products companies. Prescient Systems` comprehensive suite of supply chain planning tools enables companies to meet the unique and challenging demands of supplying the retail supply chain. More than 110 companies have benefited from Prescient`s commitment to client satisfaction and fast results that positively impact the bottom line. Companies like Binney & Smith (Crayola Brand), AAi.FosterGrant, Interbake Foods and Wyeth Consumer Healthcare have seen measurable results within an average of 90 days after acquiring Prescient Systems` solutions.
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