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Lynton Research Digest

2002
2003
2004
 
January
February
March
22nd
April
10th, 17th, 24th
May
1st, 8th, 15th, 23rd, 29th
June
12th
July
4th, 11th, 18th, 24th, 31st
August
22rd, 28th
September
4th, 11th, 18th, 26th
October
9th, 17th, 23rd, 30th
November
6th, 14th, 19th, 27th
December
5th, 11th, 18th, 30th
Market Research Digest for 24 July 2002

AMR's view on why HP pulled out of the Middleware business

Hewlett Packard (HP) will continue its OpenView systems management technology as well as some of its key software supporting theTelecommunications industry. However, the HP middleware business, which includes the Netaction application server and other middleware products, will be discontinued. The news finally makes official HP's software plans, which have been speculated on for some time. Instead of delivering the middleware products directly to the market, HP is strengthening its partnerships with BEA Systems and Microsoft. A post mortem of the HP middleware business reveals two uncorrectable problems:

  • Bad timing --HP was simply too late to the application server party when it purchased Bluestone in 2001. Although technically solid and with happy customers, the product didn't have the momentum to really compete with BEASystemsInc and IBM (IBM) on equal footing.

  • Poor marketing --In one word, eSpeak. HP was way ahead of the curve with the eSpeak concept, when it announced it back in 1999. It's amazing how all of the current technology and concepts of Web services are almost exactly like the original intentions of eSpeak (service discovery, negotiation, and composition). But HP could never really articulate what eSpeak was, and it never generated the groundswell of developer support that the concept needed. This left the door open for other vendors, like IBM and Microsoft, to adapt the concepts and create the excitement around Web services.

Commerce One lays out Web services strategy

Commerce One has laid out its strategy to use a Web services architecture in order to componentize its Source to Pay suite of applications that allow buyers to manage the buying process from start to finish.... [A] re-architecting of the Commerce One platform will be released separately and will offer tools for EAI (enterprise application integration)-like integration, business process management, and use of those tools to generate unique applications

http://www.infoworld.com/articles/hn/xml/02/07/15/020715hnc1.xml http://www.commerceone.com/news/releases/commerceone60.html

It could be irrelevant as their results were atrocious http://www.commerceone.com/news/releases/earnings_q2_2002.html (revenue for the current quarter totaled $27.8 million as compared with $101.3 million for the corresponding quarter in 2001 and $31.8 million for the quarter ended March 31, 2002.

But at least they've started acting like money doesn't grow on trees: the net loss on a GAAP basis for the current quarter was $71.1 million, or $0.25 per share, as compared with a net loss of $2,068.3 million [wow!!!], or $9.02 per share, for the corresponding quarter in 2001, and $220.6 million, or $0.77 per share, for the quarter ended March 31, 2002.

CONCUR DEMONSTRATES MOBILE EXPENSE REPORTING

SALT LAKE CITY - Concur Technologies, a leading provider of corporate expense management systems, provided a live, hands-on demonstration of its latest mobile device offerings at this week at the year's National Business Traveler's Association (NBTA) tradeshow. Click here: http://www.m-travel.com/20716a.shtml

Concur Technologies, Inc. (NASDAQ: CNQR) is the market leader of Corporate Expense Management solutions that automate costly and inefficient business processes. Meeting the needs of businesses of all sizes, Concur's solutions include travel and entertainment expense management, employee requests for vendor payments, and time tracking and reporting, and can be delivered through license and Application Service Provider (ASP) models. Today, over 875 companies, including AT&T, Citigroup, Daimler-Chrysler, DuPont, First Union, and Pfizer, have licensed over 2.4 million employees to use

Concur's market-leading solutions. Concur's strategic alliances include more than 50 world-class organizations such as ADP, American Express, KPMG Consulting, Inc., Microsoft, and Microsoft Great Plains Business Solutions. More information is available via the Internet at http://www.concur.com

Although Concur seems to be focussed on MS server technology, Time and Expenses is an example of a kind of application that needs to be integrated with other enterprise apps (ERM, ERP etc); it may be worth us prospecting quietly in this space...

E-Trade Posts 2nd-Quarter Earnings

E-Trade's Online Bank Bustles, Internet Stock Brokerage Continues to Fall in 2Q Earnings Report The Menlo Park-based company earned $32.8 million, or 9 cents per share, compared with a loss of $10.2 million, or 3 cents per share, at the same time last year. Revenue rose to $316 million from $308.2 million

http://biz.yahoo.com/ap/020718/earns_e_trade_1.html http://biz.yahoo.com/prnews/020717/sfw064_1.html ETrade is a major customer of ours...

eXcelon Announces Results for the Second Quarter of 2002

BURLINGTON, Mass.--(BUSINESS WIRE)--July 18, 2002--eXcelon Corporation (Nasdaq: EXLN - News) today announced results for the quarter ending June 30, 2002. Total revenues for the second quarter were $9.4 million as compared to $9.5 million for the same period of 2001. Net loss for the second quarter on a GAAP basis was $6.7 million, or $0.11 loss per share, as compared with a net loss of $8.9 million, or $0.30 loss per share for the same period last year. Included in the second quarter loss was a non-cash charge for disposal of fixed assets amounting to $1.6 million or $0.03 per share. On a pro forma basis, excluding this non-cash charge, the net loss would have been $5.1 million or $0.08 per share. The company's cash and investments as of June 30, 2002 were $19.3 million.

Forrester backs BPML - "A step towards Process Interoperability"

In a report dated July 11 2002, Forrester has said: "Almost two years after inception, BPMI.org -- now backed by more than 130 members -- has released the first public draft of its BusinessProcessModelingLanguage. Our take? Firms should bet on BPML for describing end-to-end business processes.". Forrester points to BPML's support for XLANG and WSFL and the utility of WSCI for trading partner collaboration.

GemStone Systems Announces Availability of GemStone Facets 2.0

and Successful Customer Implementation at SynXis Corporation GemStone Systems, Inc., the leading provider of real-time performance software, today [22 July 02] announced the availability of GemStone Facets 2.0, a shared transactional Java workspace providing transparent caching, clustering and object database capabilities. The new functionality enhances the performance of complex, distributed applications and provides enterprise organizations with faster ways to access their data while reducing CPU load and hardware requirement costs. http://www.gemstone.com/news_events/pr-072202a.html

HNC Reports Second Quarter 2002 Results

Diluted Operational Net Income Per Share $0.09 for the Second Quarter SAN DIEGO--(BUSINESS WIRE)--July 17, 2002--HNC Software Inc. announced today its financial results for the second quarter and six months ended June 30, 2002. *Actual Consolidated Results * Revenues for the second quarter and six months ended June 30, 2002 were $57.2 million and $112.5 million, respectively. Diluted net loss for the second quarter ended June 30, 2002 was $1.4 million, or $0.04 per share, and for the six months ended June 30, 2002 was $5.5 million, or $0.15 per share.

http://www.hnc.com/hnc/PressReleases/index.cfm?PressId=303&attributes.fuseaction=ShowRelease http://biz.yahoo.com/bw/020717/170326_1.html

= Dear HP Middleware "Extend & Enhance" partner ...=

HP recently announced that we are discontinuing certain HP Netaction middleware products, specifically the HP Application Server, HP Web Services Platform, and HP Web Services Registry products. HP's new software strategy

followed after its merger with Compaq and in light of changing economic and market conditions, namely consolidation among J2EE middleware providers and the emergence of .NET. In recent discussions with our customers it became clear that UNIX, Linux and Windows platforms and development environments are deployed, together and separately, in relatively equal abundance.

Further, that HP could best serve our customers by supporting and adding value across the breadth of industry-leading middleware solutions.

Going forward, the middleware program will focus on developing strategic relationships with market leaders to optimize and enhance the middleware stacks around both J2EE and .NET platforms. HP is working with industry leaders, BEA, Microsoft, Tibco, webMethods and others, to offer our customers a choice of middleware solutions for both the J2EE and .NET development environments. HP Consulting has established practices around each of these middleware platforms. HP customers who have standardized on IBM Websphere and other leading middleware solutions will be happy to know that these solutions are also available on HP platforms.

In light of this news, HP Middleware "Extend & Enhance" program is shutting its doors. We appreciate your participation in this program and we enjoyed working with you.

And goodbye to you too, Bluestone ...several $100millions later...

Informatica Reports $49.1 Million in Second Quarter Revenues

REDWOOD CITY, Calif., July 18 /PRNewswire-FirstCall/ -- Informatica Corporation (Nasdaq: INFA - News), the leading provider of business analytics software, today announced financial results for the second quarter ended June 30, 2002.

Revenues for the second quarter of 2002 were $49.1 million, up from the $48.5 million recorded in the first quarter of 2002, and also up compared to the $47.8 million recorded in the second quarter of 2001. On a GAAP basis, net income for the second quarter was $0.4 million or $0.01 per share, up sequentially from the net loss of $0.3 million or ($0.00) per share in the first quarter of 2002, and up significantly compared to the net loss of $7.5 million or ($0.10) per share recorded in the second quarter of 2001.

For the six-month period ending June 30, 2002, revenues were $97.7 million, down slightly from the $102.7 million recorded in the first six months of 2001. On a GAAP basis, net income for the first six months of 2002 was $0.2 million or $0.00 per share, up from the net loss of $9.5 million or ($0.12) per share recorded in the first six months of 2001. http://biz.yahoo.com/prnews/020718/sfth061_1.html and see BAM! story - released with WebMethods - below...

Information Builders and iWay Join UDDI Project

07/19/02, 8:30 a.m. EDT--Information Builders, a provider of business intelligence solutions for real-time information delivery over the Web, and its subsidiary, business integration middleware company iWay Software, have joined the UDDI project, a cross-industry initiative working to develop and deploy an open, Internet-based specification for UDDI (Universal Description, Discovery and Integration). The announcement follows the two companies' recently announced commitment to making their suite of WebFocus business intelligence solutions Web services-compliant. The companies believe that Web services support will empower WebFocus customers to strengthen business relationships and that the UDDI project will allow companies to deploy and use a variety of new information services.

Low Valuations, Cost Cuts Still Plague Industry

Through the first half of the year, the e-business and enterprise software market has experienced declining valuations and low price/revenue multiples. Few firms have succeeded in maintaining profitability, and many have cut expenses to preserve cash. One bright spot has been the large platform vendors, which saw an increase in price/revenue multiples by an average of 7 percent. This was led by Oracle, which rose 26 percent. (Maybe the P/E ratio rose because the E part fell more than the P did - which says my Oracle shares will fall some more ...)

You can find the paper at file://\\file-1\product\background\valuations_tripletree_ebizQ.pdf (or http://eai.ebizq.net/shared/goldclub.jsp?tripletree_9.html if you can't see our LAN - ebixQ Gold Club registration required)

Novell reveals its Destiny

Novell has unveiled its roadmap for the next generation of network-based directory services, including a Universal Description, Discovery and Integration (UDDI) server for web services http://www.vnunet.com/News/1133608

Novell recently purchased Silverstream, one of our umpty-hundred competitors in integration/Web services space

Persistence Reports Second Quarter Financial Results

Highest Revenues in Six Quarters and Profitability - SAN MATEO, Calif., July 18 /PRNewswire-FirstCall/ -- Persistence® Software (Nasdaq: PRSW - News), the leading provider of distributed data management software for business visibility, today announced financial results for the second fiscal quarter ended June 30, 2002, including quarterly profitability. For the second quarter of 2002, the Company reported revenues of $5.7 million, a 21 percent increase compared to the $4.8 million in revenues reported in the second quarter of 2001. The $5.7 million was the highest quarterly revenue figure since the fourth quarter of 2000. Net income for the quarter was $215,000, or $0.01 per share, compared to a net loss of $6.3 million, or $(0.32) per share, for the second quarter last year. Deferred revenue for the quarter was $3.8 million, which includes approximately $1.0 million in deferred license revenue from a contract signed during the second quarter of 2002. This is the second-highest deferred revenue balance in the Company's history. The Company completed the second quarter of 2002 with $7.3 million in cash, compared to $7.2 million at the close of the first quarter. License revenues reached 72 percent of total revenues, the highest percentage of total revenues since the third quarter of 2000. http://biz.yahoo.com/prnews/020718/lath035_1.html

SeeBeyond Announces Second Quarter 2002 Financial Results

MONROVIA, Calif.--(BUSINESS WIRE)--July 23, 2002--SeeBeyond ([BadWikiTag]SBYN - News), the leading global provider of eBusiness and Application Integration (eAI) solutions, today reported final results for the period ended June 30, 2002.

Net revenue for the second quarter ended June 30, 2002 was $33.7 million compared to $51.7 million in the second quarter of the prior year. License revenue was $14.3 million, representing 42% of the Company's revenue for the quarter ended June 30, 2002 versus $31.2 million or 60% in the prior year's period. The Company's cash and cash equivalents balances at June 30, 2002 were $109.3 million. Days Sales Outstanding (DSO) at June 30, 2002 was 87 days, representing a 24-day improvement from 111 days at March 31, 2002.

http://ir.seebeyond.com/ireye/ir_site.zhtml?ticker=SBYN&script=410&layout=-6&item_id=318575

_This confirms the trend that the traditional/proprietary EAI "800lb gorilla's" days are numbered - unless they can change their business models. They can't afford to maintain and innovate on such a wide and complex scale when they have so few customers (SeeBeyond has just 1700); they are being beaten by IBM, BEA and a horde of J2EE standards based product companies on one side, and Microsoft, Biztalk and a herd of low cost Windows products on the other.

Right now, SBYN is at $1.47, down from peak of over $30 (mid 2000) and $13.45 (Jan 2002). _

Sterling introduces Gentran Integration Suite

Sterling Commerce has introduced Gentran Integration Suite, a modular software suite that is designed to quickly offer many new capabilities and new functionality as needed. The Gentran Integration Suite is powered by Sterling Integrator, which is built on J2EE-based architecture and supported by a BPML-based business process engine. With Sterling Integrator as a basis for the suite, [BadWikiTag]Server users can deploy a state-of-the art integration broker architecture for both internal and external business systems integration while preserving the EDI functionality of their production [BadWikiTag]Server environment. http://www.eaijournal.com/News.asp?NewsID=808 http://www.sterlingcommerce.com/about/news/pressrelease.asp?release=567

Even mature integration companies like Sterling Commerce (a wholly owned sub of SBC for 2-3 years now) have J2EE/Web services/BPM solutions in the market, and offices/distributors in over 50 countries.

Tangosol announces Coherence 1.2 release

Tangosol today [Jul 17] announced the 1.2 release of Coherence, its clustered cache product. The new version provides distributed caching and automatic cluster restart, support, HTTP Session replication for Websphere, and more. Built in pure Java, Coherence adds clustering to any J2EE server.

See theServerSide discussion at http://www.theserverside.com/home/thread.jsp?thread_id=14494 which includes a post from Tangosol's Cameron Purdy outlining the technical value proposition; in a nutshell "If you do require highly available clusters and application-tier in-memory data stores with data integrity, then I'm certain you'll choose Coherence... the only synchronized replicated cache for J2EE". But: "note that our transactional solution is not yet commercialized [ie is beta?] (although the pilot software is included in the 1.2 release)" Business proposition: "We see customers selecting Coherence for several reasons: about 30% of the decisions are cost-driven, about 40% are for scalable performance reasons and maybe 30% for reliability (failover) reasons."

WebMethods Net Loss Narrows, Revenues Fall

(Reuters) For its fiscal first quarter ended June 30, WebMethods had a net loss of $3.1 million, or 6 cents a share, compared with a net loss of $19.9 million, or 41 cents a share, in the year-ago quarter. The improvement is due in part to the required adoption of an accounting rule which relates to the treatment of amortization of goodwill and intangible assets, webMethods said. It said revenue fell to $47.7 million from $55.4 million in the prior year. WebMethods said software license sales -- the key measure of a software company's core growth -- was $28.7 million in its fiscal first quarter versus $36.8 million a year ago and $32.8 million in the prior quarter. Excluding amortization of stock and warrant charges, webMethods had a loss of $2 million, or 4 cents a share, versus a loss of $4.4 million, or 9 cents a share, last year. http://biz.yahoo.com/ri/020722/tech_webmethods_earns_3.html (PR) During the first quarter, webMethods captured significant market share from other independent integration software vendors and moved ahead of the competition to become the leading independent vendor in the integration software market. With more than 60 new customers and a total worldwide customer base of 850 at the end of the first quarter, webMethods continued to close significant business across all geographies with Global 2000 companies in key vertical markets, such as financial services, manufacturing and the public sector [...] Last quarter, webMethods moved into production more than 75 new integration projects, or more than one production event per business day -- the highest number in the company's history http://biz.yahoo.com/prnews/020722/dcm010_1.html

BAM! webMethods and Informatica Bring Business Activity Monitoring to Market

Leaders in Application and Data Integration Team to Help Customers Achieve Real-Time Access to Critical Business Indicators FAIRFAX, Va. and REDWOOD CITY, Calif., July 23 /PRNewswire-FirstCall/ -- webMethods, Inc. (Nasdaq: WEBM - News), the leading provider of integration software, and Informatica Corporation (Nasdaq: INFA - News), the leading provider of data integration and analytics software, today announced that their existing partnership has been elevated to the preferred level to achieve a single goal: make business activity monitoring (BAM) an easily attainable reality. The companies' vision for BAM builds upon the traditional capabilities of data and application integration to power the analysis and monitoring of a complex network of applications and their interactions. http://biz.yahoo.com/prnews/020723/dctu024_1.html


Revision r1.3 - 22 Mar 2003 - 16:56 GMT
Parents: 2002 > July02
Copyright © 2001-2004 Nigel Thomas. External material referenced from this page is the property of its respective authors.