Successful expansion: ILOG supply chain solutions appeal to new groups of customers
By Manufacturing Business Technology Staff -- Manufacturing Business Technology, 2/4/2008 11:05:00 AM
Supply chain management solution supplier ILOG says its foray into areas beyond financial services—and most notably into the manufacturing arena—is starting to show dividends in the form of new sales growth.
For the second fiscal quarter of 2008, which ended December 31, 2007, ILOG reported 22 percent year-over-year revenue growth.
Revenues for the quarter were $48.0 million compared with $39.4 million for the second quarter last year. U.S. GAAP earnings per share were $0.15 compared with $0.05 last year.
"We had a good quarter in a tough environment with license growth at 23 percent and significant improvement in our profitability both sequentially and year-over-year," said ILOG Chairman and CEO, Pierre Haren. "The solid sales pipeline resulted in strong growth in our optimization and supply chain applications. We were able to grow our business rule management system (BRMS) sales thanks to the diversification of our BRMS customer base away from financial institutions, achieving notable wins in other industries including transportation and through applications including commissioning, data cleansing, and loyalty programs. We were also pleased to meet our revenue target without large deals this quarter, underscoring demand for our products to address today's business challenges across industries and geographies."
Revenue Trends
In addition to 23 percent license growth, ILOG also achieved worldwide revenue increases of 23 percent in maintenance and 18 percent in professional services. Revenue growth across all geographies was evenly distributed:
• Europe revenues rose 25 percent;
• The U.S. grew 20 percent; and
• Asia grew 19 percent.
Following the acquisition of LogicTools, ILOG's supply chain applications business gathered momentum in the U.S., as witnessed by strong license growth for LogicNet Plus XE supply chain network planning product, which targets the manufacturing sector. New customers included a leading U.S. chemical company and one of the most-recognized supermarket dairy brands. LogicTools products are in a market development phase in Europe following their official launch there early in the second quarter.
