Citing the continuing need among businesses to identify cost reduction and supplier savings opportunities, Emptoris, a developer of supply management software, has reported record results for its third quarter of 2004.
The company, which markets the Emptoris 5 Enterprise Supply Management suite, said revenues for the quarter were up over 200%, compared with the comparable period in 2003. In addition, Emptoris said new sales for the third quarter were up 250%.
The firm signed 15 major deals in the quarter, further fueling its momentum.
Avner Schneur, president and CEO, Emptoris, attributed the gains to the high value companies can capture using solutions like Emptoris, and to the complexity and difficulty of solving the spend data management problem. "Many companies do not have the internal resources or time needed to solve the data problems, especially in the area of spend analysis," says Schneur.
Thanks to its strong growth trajectory, Emptoris also closed a $12 million round of financing in the third quarter. The round was led by new investor ABS Capital Partners, along with existing investors Menlo Ventures and HarbourVest. Dean Goodermote, venture partner at ABS, will join the Emptoris board of directors.
Emptoris plans to leverage the cash infusion in a number of ways. "We plan to continue to drive acquisitions to broaden our product solution, add new services and expand the number of customers we have," Schneur says.
It will also use the funds to expand in the United States and Europe while broadening efforts to penetrate the Asia Pacific region through both direct and channel sales. Already busy on the acquisition front, in December Emptoris acquired Valuedge, a provider of Web-based supplier assessment tools. The technology lets companies automate the auditing of their supplier business processes to track and improve performance.
This article is repurposed from the February 2005 edition of Managing Automation magazine.