CIMdata PLM Industry Summary Online Archive
21 February 2007
Financial News
Primavera® Posts Record Profits and Revenue for 2006
Primavera Systems, Inc. released details of its record-breaking 2006 fiscal year (ended Dec. 31, 2006), in which the company once again broke its own record for revenue and profitability and continued its string of 24 consecutive years of revenue growth. Total revenue for 2006 increased organically by 13 percent to $122.7 million.
The company also raised a large round of private equity financing, which it leveraged to gain two new products, five new offices and 120 new employees through the December acquisition of two companies: ProSight, Inc., a portfolio analysis solutions company based in Portland, Ore., and PertMaster, Ltd., a project risk analysis and mitigation solutions company based in the United Kingdom. These two acquisitions are forecasted to help Primavera more than double its rate of growth for 2007 over 2006.
"Primavera's 23 years of growth are built on a history of enabling customers to drive business value and see significant results," said Joel Koppelman, Primavera CEO. "Through the acquisitions of ProSight and PertMaster, Primavera customers now have an end-to-end solution to propose, prioritize and select strategic investments, and then to plan, manage and control the portfolio of projects through to completion. Our broader solution set, in concert with our ongoing dedication to achieving the highest level of customer satisfaction in the industry, will help our customers eliminate project failure and achieve greater success in 2007."
The company experienced broad demand from enterprise customers across its entire product line, with revenues evenly split between follow-on sales to existing customers and sales with new customers. In 2006, Primavera's new clients included :
• Harvard University Allston Development Group(US)
• NASA Exploration Systems Mission Directorate (US)
• National Housing Authority of Thailand ( Thailand)
• Railway Project Management Company ( Saudi Arabia)
Primavera enjoyed robust growth internationally in 2006, with 42 percent of Primavera software license revenue coming from outside of North America, a marked increase over the previous year.
Primavera also strengthened its management team by naming Scott Grisanti to the newly created post of Executive Vice President of Sales, Marketing and Services. Grisanti joined Primavera from eResearchTechnology, a publicly-traded company that provides technology and services to support the new drug development industry. He is responsible for directing and synchronizing worldwide sales, product marketing and professional services.
Michael E. Shomberg, formerly Vice President of Marketing, was appointed Vice President of Product Strategy, another newly created position. Lena Dragan, formerly Director of Marketing Communications, was named the new Vice President of Marketing. These executives' collective 30 years of sales and marketing experience will further strengthen Primavera's sales and marketing executive team.
"Primavera understands that a positive customer experience directly impacts customer loyalty and retention, corporate performance and bottom-line financial results," said Mitchell Codkind, Primavera CFO. "Our focus on project and portfolio management creates a high level of specific industry and solution expertise and allows us to consistently meet and exceed the needs of our more than 2 million users."
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