ILOG reaps benefit from old and new economies, says CEO

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ILOG S.A., the provider of software components, has reported revenues of $20.9 million and income from operations of $1.8 million, compared with revenues of $16.8 million and income of $0.2 million in the previous year’s fourth quarter. The company posted earnings per share of $0.10 on 18.5 million shares, compared with $0.01 on 14.3 million shares in the previous year’s fourth quarter.

For fiscal year 2000, ILOG’s revenues were $71.3 million, compared to $63.7 million in the prior year. Income from operations for the year was $1.0 million, compared with a loss of $3.2 million in the previous year, after $2.5 million in one-time charges.

As ILOG chief executive officer Pierre Haren explained, “We benefited as an infrastructure provider for e-business players of both the old and new economy. Our business in telecomms and transportation was strong, and we signed a record number of 29 new ISVs during the quarter.

“I am very pleased by our 41% license revenue growth over the equivalent quarter a year ago. We achieved this growth despite the fact that deployment-related royalty revenues from some of our strategic ISVs – notably SAP, Siebel and BEA Systems – isn’t expected to start flowing until later in fiscal 2001,” said Haren.

ILOG experienced growth within the e-business sector, where products such as the new ILOG JRules 3.0 business rule engine are enabling superior capabilities for web personalization and other critical functions. For example, companies like Annuncio and others are embedding ILOG products for highly personalized e-merchandising solutions. Fifteen new ISV and end user contracts were signed in the e-business arena, across the e-commerce, finance, travel, insurance and healthcare sectors.

In traditional ILOG strongholds including telecommunications and transportation, there was strong demand during the quarter for the company’s products. ILOG’s telecom division signed up 26 new customers during the quarter, reinforcing the company’s leadership in GUI components for network management. Besides a major win with a significant UK vendor in the network management space, ILOG continued its penetration into the high-growth U.S. optical networking sector.

ILOG had notable success with transportation customers in Europe, including expanded business with SNCF (the French national railway), Federal Express and Fabricom, a Belgium-based manufacturer of luggage handling solutions.

There were encouraging signs during the quarter that the Y2K-impacted supply chain management segment is starting to recover. Besides the commencement of significant royalty revenues from Oracle, other positive developments during the quarter included five new agreements with European ISVs and repeat business with key American ISVs.

Dually headquartered in Paris and Mountain View, California, ILOG offers components that dramatically shorten the development time of enterprise applications in the supply chain, telecommunications, transportation and financial services industries.

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