Plumtree Nears Profitability - InformationWeek
Software // Enterprise Applications
10:13 AM

Plumtree Nears Profitability

The portal software vendor reports a small rise in revenue and a reduction in losses.

In a fragmented market with no established leader, Plumtree Software Inc. slowed its losses by achieving marginal improvement during a summer quarter that's typically slow for sales of portal software. During a conference call with analysts Monday, CEO John Kunze attributed the company's resilience to its evolution from a champion of portals to a proponent of "functional" portals, or those that serve up applications.

The company saw its licensing revenue, which had been falling, rise slightly, to $9.1 million from $8.5 million. That, combined with a modest increase in services revenue, resulted in 4.5% revenue growth from the previous quarter and near return to profitability.

Forrester Research analyst Laura Ramos says Plumtree is smart to take some risks, such as working with partners to develop applications designed for specific vertical markets. Ramos says other vendors, such as IBM and SAP, have taken market share from Plumtree because of their access to vast installed customer bases, but that a more specialized set of offerings will help to distinguish Plumtree in the market. At its user conference this week in Hollywood, Fla., Plumtree is introducing several such applications, as well as a Java 2 Enterprise Edition of its portal framework, previously available only as a .Net tool.

For its third quarter ended Sept. 30, Plumtree posted a loss of $373,000, or 1 cent per share, on revenue of $18.5 million, compared with a loss of $889,000, or 3 cents per share, on revenue of $17.7 million a year earlier. The company was profitable on a pro forma basis, with a profit of $603,000, compared with a profit of $562,000 for the same period last year.

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
[Interop ITX 2017] State Of DevOps Report
[Interop ITX 2017] State Of DevOps Report
The DevOps movement brings application development and infrastructure operations together to increase efficiency and deploy applications more quickly. But embracing DevOps means making significant cultural, organizational, and technological changes. This research report will examine how and why IT organizations are adopting DevOps methodologies, the effects on their staff and processes, and the tools they are utilizing for the best results.
Register for InformationWeek Newsletters
White Papers
Current Issue
Digital Transformation Myths & Truths
Transformation is on every IT organization's to-do list, but effectively transforming IT means a major shift in technology as well as business models and culture. In this IT Trend Report, we examine some of the misconceptions of digital transformation and look at steps you can take to succeed technically and culturally.
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll