Kana reports 748% growth in record 4Q results

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Kana Communications has announced record results of $42.4 million for the fourth quarter ending 31 December, a 557% increase over $6.5 million in the previous year. Pro forma net loss increased to $33.2 million. For 2000, Kana’s revenues were $119.2 million, a 748% increase.

The results include a charge of $2.1 billion for goodwill associated with the acquisition of Silknet Software, and a $2 million loss for litigation and settlement costs over a patent.

Commenting on the results for the quarter, chief executive officer Jay Wood said, “Our growth in license revenue reflects continued marketplace acceptance of our web-architected relationship management solutions among Global 2000 companies. These world-leading companies accounted for a large percentage of Kana sales in Q4 and include Cigna, Ford Wingcast, Comcast, AT&T, Sara Lee, Verizon, 3Com, Aetna, The Chase Manhattan Bank, Sprint, PG&E and Mazda.”

“During the quarter the engineering and product teams delivered a range of new products including Kana 6 Service and Marketing applications, the Kana 7 eBusiness Platform for Java/EJB, which is now installed at Fortune 50 accounts, including GE Capital and Cisco, and Kana’s mBusiness wireless solution,” said Wood.

David Fowler was appointed president and Nigel Donovan chief operating officer. Fowler will have day-to-day responsibility for sales, marketing, and business development. He brings 25 years of technology business experience to the position, including senior management roles at Silknet, Chipcom, Sun Microsystems, and Gradient technologies.

As COO, Donovan will be responsible for engineering, professional services, and customer support. This represents a return to his prior role at Silknet. He brings 13 years of experience in managing service organizations in the enterprise applications and solutions environment, through both his time at Silknet, where he was a co-founder, and his prior role as VP of professional services with an international financial applications company.

Despite slowdowns in IT spending, analysts predict continued good growth in the eRM market. As a result, Kana is anticipating year over year growth to be more than 50% in 2001.

Kana

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