RealTime IT News

Cysive: Taking the High-End Road

Web consulting firms have been enjoying tremendous growth, as companies scramble to get online. However, companies are demanding much more sophisticated Web technologies, especially those that allow for business-to-business commerce and supply-chain management.

One company that specializes in high-end Web consulting is Cysive (CYSV) . The company focuses on Global 2000 customers, such as AT&T, Qualcomm, and Tribune Company.

Perhaps the most notable customer is Cisco. The firm generates $32 million in online transactions per day. Six software engineers from Cysive helped Cisco develop a server-side Java system to greatly enhance the scalability and performance of the Cisco transaction system. What's more, the technology was extensible. That is, it was built using reusable modules, which makes it easier to modify the system over time.

Of course, Cysive hires top-quality personal. Apparently, the company's engineers average about 10 years of experience. What is amazing is the low turnover: below 5 percent per year. Then again, the company has not grown by acquisition; rather, the headcount has increased organically.

In the latest quarter, the company generated revenues of $8.6 million, which was up 154 percent from the same period a year ago. The sequential growth rate was 18 percent. In fact, the company is even profitable. Last quarter, the company had $916,000 in net income. During this time, the company added seven new clients and repeat business accounted for 63 percent of sales.

No doubt, some of the latest customers have been B2B companies. For example, the leading exchange for purchasing communications and IT equip ment, Cymerc, has agreed to use the services of Cysive. Such a system does not lend itself to off-the-shelf software. Rather, there is extensive custom software design -- dealing with currencies, back-end integration, dynamic auctions and so on.

Another validation of Cysive is the recent agreement with Bain & Company, which is a leading global management consulting firm. Bain & Co. will provide complex Web services to its clients using the help of Cysive.

It is inevitable that companies will invest huge sums in increasingly complex Web applications and sites. So, getting to market quickly will be critical and, of course, Cysive will be there to benefit.

----- 154 percent year-over-year revenue growth and already profitable. Is Cysive attractive at current levels? Discuss it here

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