SevenSpace Reaches Cash Flow Positive Position
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About eight months after merging with fellow management server provider (MSP) Nuclio, Chantilly, Va.-based SevenSpace announced yesterday it has reach a cash-flow positive position. The company reports that since integrating Chicago-based Nuclio into its operation is has experienced a tenfold increase in monthly revenues.
SevenSpace, which has been in existence for less than two-and-a-half years, reports that its acquisition of Nuclio has resulted in several operational efficiencies, including consolidated support operations, a unified application and network management platform, and a suite of IT outsourcing services. The combination of the two companies has also resulted in SevenSpace landing several new contracts with Fortune 1000 companies and enterprise customers, the company reports.
"I am proud to announce that we operate independently of outside capital today. We are now self-sufficient with existing customer revenues," said Peter Weber, CEO of SevenSpace. "Ninety-two percent of our income today is in recurring revenue based on value-added services," said Weber.
According to SevenSpace, August 2001 revenues were $177,000 while August 2002 revenues grew to $1.7 million, delivering a tenfold increase year-to-year. Head count grew only slight from 98 employees in August of 2001 to 102 employees in August of 2002.
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