Manning says his biggest challenge at Pivotal will be to build its name recognition. Siebel, he says, has "a bigger, more well-known brand then we do, although our capabilities from a product perspective, an implementation perspective, are as good, if not better, in some cases." In fact, Manning says, "I intend to take all the great things that have made this a $100 million company to make it into a $500 million company." Pivotal reported revenue for its fiscal year, ended June 30, was up 80%, to $95.3 million, but it nonetheless posted a $32.4 million loss. Software license revenue for the year grew 56.5% over the prior year, while service revenue grew 136.5%.
The new CEO is considering acquisitions to broaden Pivotal's product line and extend its service capabilities. He says more details about strategy will be released later this year. Manning also says he'll bolster the company's sales staff. The announcement did little to Pivotal's stock, which closed up 12 cents, at $8.05.
Separately, Pivotal is expected to announce a new partnership with Intel. The two have signed a multiyear agreement that includes joint sales, marketing, service, and product-development initiatives. They plan to market Pivotal's Demand Chain Management products with Intel services for Global 2000 companies.