CIMdata PLM Industry Summary Online Archive
November 15, 2007
Financial News
Endeca Reports 19th Consecutive Quarter of Year-Over-Year Growth
Endeca Technologies, Inc., an enterprise information access software company, today announced that it achieved record revenues with 67 percent year-over-year revenue growth in the third quarter, the company's 19th consecutive quarter of year-over-year revenue growth. Revenue for the first three quarters grew 79 percent compared to the first nine months of 2006, and trailing 12-month revenue exceeded $100 million. Endeca's organic growth rate remains the highest of any company in the information access market.
Fueled by key enterprise wins at automotive, high-tech, and industrial companies, Endeca's manufacturing and distribution business increased over 180 percent year over year. Public-sector business is up more than 130 percent year-to-date compared with the first nine months of 2006, as key wins with civilian, defense, and intelligence agencies accelerated the already rapid adoption of Endeca's public-sector solutions. The quarter also saw Endeca extend its market leadership position in online retail. By the end of the quarter, more than 40 of the top 100 online retailers had adopted Endeca technology to help shoppers explore and discover products and related content on their online storefronts.
"We're in an exciting period as a company, one where we're seeing incredible organic growth and traction in established markets alongside huge demand in new application areas. This points to a tremendous untapped market opportunity," said Steve Papa, chief executive officer of Endeca. "In the third quarter, we saw a rapid expansion of our business in opportunities historically addressed by business intelligence technology, packaged applications, or custom solutions built on database technology."
Q3 2007 highlights include:
• Signed dozens of new customers and expanded the use of the Endeca Information Access Platform within the installed base: Key wins included many market leaders and respected organizations such as Avnet, Boeing, the (U.S.) Department of Homeland Security, the (U.S.) Department of Defense, the (U.S.) Environmental Protection Agency, Ford Motor Company, and PETCO.
• Grew and established new channel alliances as strategic partners played an increasingly large role in key deployments, new innovation, and significant wins: Global solutions integrator partners Cognizant, IBM Global Business Services, and Sapient and regional solutions integrator partners such as Blue Fish, Brulant, and LBi teamed with Endeca on high-profile, high-value wins and key deployments. Expanded technology and reseller partnerships with Bazaarvoice, Dassault/MatrixOne, i2, PowerReviews and Silver Creek Systems lead to greater platform extensibility and key new customer wins.
• Introduced the Endeca Discovery Suite, advancing the state of the art in eCommerce and online media: Built to extend the capabilities of the Endeca Information Access Platform, the suite enables the rapid design of dynamic Web sites, the acceleration of online community building, and the integration of online and offline assets. The suite's first two entries are the Social Navigation Module and Search Engine Marketing Module. Future modules will focus on personalization and recommendations, closed-loop reporting, multi-channel operations, and back-end integrations-all with integral support for Web 2.0 interactivity.
• Recognized for meteoric growth over the past five years: Named one of the top 10 fastest-growing technology companies in New England and one of the top 100 fastest-growing technology companies in North America by Deloitte; Recognized as one of the 200 fastest-growing private companies in Inc. magazine's Inc. 500.
• Positioned by Gartner in the Leaders Quadrant of the 2007 Magic Quadrant for information access technology: The report includes vendors that go beyond enterprise search to encompass a collection of technologies, including: search; content classification, categorization, and clustering; fact and entity extraction; taxonomy creation and management; information presentation (for example, visualization) to support analysis and understanding. According to the report, vendors included in the Leaders Quadrant "are financially prepared to weather hard times, and they possess sufficient resources to invest inorganically and organically in technology and business growth. They have established sufficient depth and strength to serve as platform vendors whose software might be used to solve most information access problems."
• Grew global operations and expanded localized customer support: Expanded European headquarters in London, U.K., creating new local training facilities and significantly expanding European operations. Expanded the company's worldwide headquarters in Cambridge, Mass., by 50 percent. Opened new downtown Chicago office to provide localized support, customer service, and education to Midwest customers and partners. Opened new Southwest hub in Texas.
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