• May 2, 2002
  • By David Myron, Editorial Director, CRM and Speech Technology magazines and SmartCustomerService.com

Onyx Loss Narrows, Sales Sharply Off

Keeping in line with other CRM players, Onyx this week unveiled a steep drop in software sales for its first quarter due to weak corporate demand for software. However, the company posted a narrower loss for the quarter, which narrowed to $6.6 million, or 14 cents per share, from $15.7 million, or 42 cents, a year ago. Total revenue fell by about half to $14.6 million from $28.9 million last year as software sales fell 76 percent to about $3.1 million. Excluding charges related to restructuring and other items, the company recorded a pro-forma loss of $3.6 million, or 7 cents per share, larger than the 5 cents a share loss many analysts were expecting, according to Thomson Financial First Call estimates. This compares with a loss of $12.3 million, or 32 cents. Licensing revenue for the first quarter of 2002 fell to $3.1 million, which is off from the previous quarter's $6.6 million and sharply off from the $13 million collected in the first quarter of 2001. Service revenue was not hit quite as hard as Onyx collected $11.6 million in the first quarter of 2002 compared to $13.1 million in the fourth quarter of 2001. Service revenue was $16 million in the first quarter of 2001. "Since quarter close, we've taken actions designed to improve our future license revenue," said Onyx Software Chief Executive Brent Frei, in a statement. "We've hired additional sales leadership and are adding experienced professional sales personnel. We've already seen a positive impact from John Fraser, the former Sybase executive we announced as our new senior vice president of Americas sales on April 22nd."
CRM Covers
Free
for qualified subscribers
Subscribe Now Current Issue Past Issues