FrontRange Reports Sequential Increase in Revenues and Profits (email this article)

Pleasanton, CA (December 15, 2004) FrontRange Solutions (Company Profile, Past Stories, Case Studies), a global leader in service management and CRM solutions for the Small-to-Medium-Enterprise (SME) and Distributed Enterprise markets, reported an increase in revenues and profits for the quarter ended October 31, 2004. Revenues for the quarter increased to $20.2 million, an increase of over 20% from the $16.8 million for the three months ended September 30, 2003. The new quarterly reporting period is the result of the recent change by FrontRange of its fiscal year end from June to April. In addition to an increase in revenues, FrontRange also reported operating profit of $2.144 million or 10.6%.

Michael McCloskey, CEO of FrontRange said, “The results of the quarter reflect the tremendous progress we have made during the past 18 months in reshaping FrontRange into a leading provider of Service Management, CRM, and Voice Applications. During the quarter, we have grown revenues over the prior year by 20%, license revenues by over 45% and improved operating income to $2.144 million or 10.6% of revenues. In addition, we have also increased research and development spending by 37%, reflecting the heavy investment and commitment we are making to our product strategy.”

“I am very pleased with our 45% increase in license revenues over the prior year. Stronger license revenue, a reflection of our customer’s willingness to purchase our products, is one of the most important measures of the health of a software company. The commitment we have made to accelerate our investment in the development of our product strategy, combined with our stronger focus on going to market through our channel partners, has bolstered our ability to maintain and improve license sales,” McCloskey stated.

According to John Hillyard, CFO of FrontRange, “I’m pleased to see our business strategy reflected in our financial model. Our channel strategy focus is resulting in higher overall revenues, increased investment in R&D is fuelling the growth of our current and new product offerings, and increased Sales & Marketing efficiency are all contributing to FrontRange’s improved financial performance.”

Highlights from the last release:
FrontRange Customer Momentum Continues: FrontRange added 422 new customers during the period, including 101 new GoldMine customers as well as 321 new customers for its HEAT product line. This includes 207 new customers in North America, 158 in EMEA, and 57 in Asia Pacific.

Customer Wins for the period include:
§ North America - Electronics For Imaging, BRINKS, Connecticut Online, Standard Motor Products, ASCO Valve, New York Jets, BWX Technologies, Debevoise & Plimpton, NSI Software

§ Asia Pacific- Shortcuts Software, Spirax Sarco, Level Up!, Scream Savers, Angus and Robertson, Softwoods Timberyards, Les Mills New Zealand, Wright Patton Shakespeare, PT Astra International, Frontline Technologies, ICIC Bank, AsiaWorks Training, Dagang Net Technologies

§ EMEA-Fiat/Alfa, UCS Solutions, Central African Building Society, Nissan Diesel, Sappi Kraft, Agricultural Research Council, Daimler Chrysler Finance, Global Refund, ABN AMRO Poland, Peritrostok, Essex Police, LSM Group, STA Travel, Oxford County Council, VediorBis

§ New HEAT and GoldMine Releases Help Drive 2nd Quarter Revenue: Demonstrating commitment to existing product lines, and continuing to develop products that meet customer needs, FrontRange’s HEAT and GoldMine product releases –with significant additional functionality and usability- were instrumental in driving the company’s sequential revenue growth.

New Products Announced:
New IP Contact Center 3.7 increases productivity and reduces costs with robust voice (PBX/ACD), screen pop, data integration, IVR, unified messaging, and reporting capabilities uniquely designed for the small to mid-sized contact center. A single point of administration reduces the typical complexity required to support a traditional telephony infrastructure. Available as a stand-alone product or integrated with HEAT or GoldMine products.

GoldMine 6.7 drives enormous cost savings for customers and enhances success for FrontRange partners with more choice and capability according to customer needs with additional interoperability with mobile solutions and support. “Best fit” features in GoldMine include advanced Palm PDA integration, Record Typing enhancements, Softphone support, and Query by Example tools.

Continued Expansion of International Operations: FrontRange continues to make significant investment in its geographic expansion plans, including its Latin American, Asian and European operations. This includes substantial new investment in personnel, product localizations and marketing initiatives. In addition, FrontRange has recruited a number of new channel partners to drive into these new markets.

About FrontRange Solutions
FrontRange Solutions develops award-winning software and solutions that are used by more than 130,000 companies and 1.2 million users worldwide to manage a wide variety of business relationships and provide exceptional service. FrontRange product families, designed specifically for small- to mid-sized enterprises and distributed enterprise organizations, include GoldMine, for business relationship management, team-based contact management and sales forces automation solutions; and HEAT, for complete service management including Help Desk, Knowledge Management, Asset Management and Service Level Management. Customers representing 44% of the Fortune 100 and 76% of the FTSE 100, include Coca-Cola, Shell Oil, Prudential Securities, Électricité de France, Mack Trucks, Campbell Soup, Avaya, Bechtel Corp, Bank of America, and Turner News Network. For more information, call (800) 776-7889 or visit www.frontrange.com.