Ready for another buzzword? How about Software Change Management (SCM)?
Well, as for SERENA Software ,
it is much more than a buzzword.
The company was founded in the early days of the PC revolution: 1980.
Since then, SERENA has become a powerhouse. About 80% of the Fortune 50 use
the company’s products.
Essentially, SERENA develops software products and best practices that
automate the management of enterprise software changes. Normally, it’s a
process that can be a nightmare.
The company’s flagship solution is eFull.Cycle. It is a combination of
sophisticated software and management consulting and educational services.
The software products include Change Man (which allows for the management
of change throughout the application lifecycle); Comparex (this is a
comparison utility for quality assurance); and Detect+Resolve (handles
problem detection and resolution).
The company has also been acquiring technology. A recent purchase was for
UltiMIS. The acquisition helped with the speed-to-market of StarSuite.
StarSuite helps companies with file and data management, fault diagnostics
and test debugging.
Traditionally, SERENA has focused on the mainframe marketplace. But in
1998, the company began to penetrate the desktop market. For example,
SERNET is a product that provides for integrated SCM solutions for mainframes and
desktops.
And the strategy has been working. Revenues in the past quarter surged 40%
from last year to $26.6 million. In fact, the growth has been broad. Both
desktop and mainframe revenues have been strong. The company is also very
profitable. Net income increased 101% to $9.4 million.
So far, it looks like SERENA will keep growing. This year, the company is
expected to show an EPS of 76 cents per share. Next year, the estimates are
for $1.03. Yes, if anything, SERENA has made a buzzword a real business.
To see the earnings expectations, you can check WSRN.com’s
earnings page.
SERENA’s 52-week range is $14 – $58 5/16 and the current stock price is $38 3/16.
