Concur Predicts Profitability

Citing a goal of reaching profitability by September 2002 and pointing to strong sales among ASP customers, Concur , a corporate expense management ASP and independent software vendor (ISV), reported fourth quarter revenue of $10.8 million.

Concur’s revenue for the period that ended on September 30, 2001 was up 31 percent over the same quarter last year when it reported revenue of $8.2 million. The net loss for the quarter was $5.3 million ($.20 per share). This is an improvement over last year when the Redmond, Wash.-based company reported a fourth quarter net loss of $13.5 (.54 per share).

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For the fiscal year 2001, net revenues were $39.7 million, a 17-percent increase over last year. The net loss for the fiscal year was $35.1 million ($1.37 per share). This compares to a net loss of $757 million ($3.15 per share).

“We had an outstanding quarter despite a very challenging economic environment,” said Steve Singh, Concur’s chairman, president and CEO said in a company-released statement. “The fourth quarter marked the fifth consecutive quarter in which our company has met or exceeded analysts’ expectations. We remain on track to reach profitability by September 2002, and become cash flow positive prior to September 2002.”

“Our balanced approach through both license and ASP models, combined with our scalable channel strategy, allows us to serve the entire corporate expense management market while building a recurring ASP revenue stream and a high gross margin license revenue stream,” Singh said.

Concur’s Fourth Quarter Highlights

  • Of the 104 contracts signed, 72 represented ASP customers. New large-market license customers included Applied Materials,, The Rouse Company and Qwest CyberSolutions. New middle market ASP customers included Avenue A, London Fog and Quantum Corporation.
  • Concur said it continued to see solid results and increased momentum from reseller partners. Its partnership with ADP accounted for more than 50 percent of new contracts for the ASP model in the fourth quarter, and resulted in more than 225 new customers to date. Microsoft Great Plains Business Solutions, Concur’s newest partner for the ASP model, began signing up customers during the fourth fiscal quarter, a full quarter ahead of plan, the company reported.
  • Concur said it continued to see a positive trend with existing customers purchasing additional products and seat licenses. Existing customer extensions included Abbott Laboratories, Pennzoil, PricewaterhouseCoopers and ABN Amro.
  • Concur expanded its customer sales in international markets. New European customers included Diageo PLC and Hitachi Europe. New Australian customers included St. George Bank and Aristocrat Technology.

Concur executives project the company’s fiscal year 2002 net revenues will be between $44 and $46 million. The company’s 52-week stock price high is $3.69. It’s 52-week low is $.28. Today it was trading at $.94.

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