Press Releases

EMPTORIS BOOKS 20% GROWTH IN 2008;
2X THE INDUSTRY AVERAGE

Fortune 1000 Turn to Emptoris Solutions to Better Manage Spending

Company Receives $20 Million Capital Infusion for Organic Growth, Solution Expansion

Burlington, MA and London, UK – (February 3, 2009) —  Emptoris, a world leader in supply and contract management software solutions, outlined today the continued strong growth in the sales and adoption of Emptoris solutions over the past year.  The company reported approximately 20% growth in revenues in 2008, a rate twice the industry average, and transactions with 145 companies over the course of the year, the vast majority with Global 2000 companies.  The company said the results, which accelerated in the fourth quarter, highlight the fact that Global 2000 companies are increasingly seeking to employ and expand solutions that enable them to better manage and control spending.

"The fact that companies are expanding their investment in Emptoris solutions speaks volumes about the value and impact our solutions provide, particularly given the difficult current economic environment," said Avner Schneur, president and chief executive officer of Emptoris, Inc.

The company also highlighted other milestones over the past year, including a significant capital investment the company has received to fund continued organic growth and solution expansion; and capital commitments for possible future acquisitions.

Growth Accelerates with Global 2000 Customers
Illustrating the investment in its supply and contract management solutions by Global 2000 companies, Emptoris reported that more than 145 companies, the vast majority with revenues in excess of $1 billion, invested in or expanded their investment in Emptoris solutions over the past year.  This allowed the company to register close to 20% growth in revenues in 2008, a rate two-times the 10% industry average growth rate as estimated by AMR Research.¹

According to one recently published independent research brief, "While other vendors are seeing sales halt or slow significantly, Emptoris has continued to increase its new client list and has a customer retention rate greater than 90%. In fact, Emptoris grew revenue an impressive 20% in 2008."

The company noted that sales of its supply and contract management solutions accelerated in Q4 2008, making it the best quarter on record for the company in terms of sales bookings.  Emptoris has expanded its Global 2000 base with recent new customers including a Fortune 50 global insurance company; a Fortune 500 global high-tech equipment company; a Fortune 1000 global pharmaceuticals company; a Fortune 1000 global telecommunications company; and Global 2000 companies in the manufacturing, machinery, chemicals, telecommunications, software, pharmaceutical and healthcare industries.

The company reported that 37% of its business was driven by new customer contracts in 2008 and that number increased to 43% in the fourth quarter, despite the economic environment.  Overall, the company increased its new customer wins by 13% this past year.  Among the dozens of new customers in 2008 were a broad range of companies and organizations from around the globe, including, Brightpoint, Inc., Nicolas Piramal Limited, Sika Group AG, Todo1, an international university and public agencies including the UK HM Revenue and Customs and UK Home Office.

The company also noted an increasing trend in adoption of its suite.  The number of companies buying a suite of solutions from Emptoris doubled in 2008.  The number of customers expanding their solutions with Emptoris in 2008 grew by 18%.  "The increase in investment in multiple products from Emptoris provides a strong vote of confidence from our customers," noted Schneur.

Capital Investment to Fuel Continued Growth, Solution Expansion
The company also announced that it has received a significant capital investment from Marlin Equity Partners in December 2008 that will provide Emptoris with strong resources to support the company's growth strategies for both its operations and its award-winning solution suite.

Marlin's investment in the company was structured to include a buy-out of the existing venture capital investors, to extinguish certain liabilities, and to fund an additional $20 million in working capital to ensure the company's continued growth, all without increasing the company's level of debt.  Additionally, Marlin has allocated a significant amount of capital to fund future strategic acquisitions.

"With significant financial backing from Marlin Equity Partners, we plan to aggressively expand our base of Global 2000 customers and continue our innovation and investment in our award-winning supply and contract management solutions," said Avner Schneur, Chief Executive Officer of Emptoris.  "Marlin's investment strengthens Emptoris financially, and provides the funds to grow, both organically and, where it makes strategic sense, via acquisition."

Investing in Solution Expansion and Innovation
Emptoris will continue to invest in innovation to maintain leadership in the space.  In the fourth quarter, Emptoris unveiled a significant expansion to its award-winning supply and contract management solution suite, designed to provide even greater agility and "actionable insights" to companies looking to weather the financial downturn. The expansion spanned Emptoris' Spend Analysis, Sourcing, Contract Management, Supplier Performance, and Compliance solutions.  New functionality and innovations include real-time drillable dashboards; sourcing desktop intelligence; a spend enrichment manager; and host of functions that enable "agile contract management."

"The CEOs, CFOs and CPOs of leading companies that we work with have expressed to us a need for actionable visibility into their supply relationships and greater agility in their contractual relationships. Emptoris delivered on those economic imperatives with its latest expansion," said Kevin Potts, Vice President of Marketing and Product Management at Emptoris.

Emptoris: Consistently Ranked #1
Finally, Emptoris’ reported that its recognition by independent research firms continued apace in 2008, with a number of new reports reviewing Emptoris solutions, including:

• Gartner:  The Gartner "Magic Quadrant For Sourcing Application Suites, 2008" report positioned Emptoris as the top sourcing software provider in the "leaders quadrant" based on an evaluation of the company’s "Ability to Execute" and "Completeness of Vision."   The Gartner report, "Vendor Rating: Emptoris" was also released in early 2008, and gives Emptoris and its solution suite an overall "positive" rating.
• Forrester Research:  Forrester Research places Emptoris in the "Top Tier" of spend analysis providers in its report, "Market Overview 2008: Automated Spend Analysis"  This 20-page report reviews 12 spend analysis software providers and ranks those providers into three tiers.  Emptoris Contract Management also received the highest score for "Current Product Offering" in the recently released report, "The Forrester Wave: Contract Life-Cycle Management, Q3 2008."  The 17-page report reviews 13 contract management software providers and evaluates them on 110 criteria.
• AMR Research:  This AMR Research report, "Case Studies of the Supply Management Transformation Journey," examines the supply management processes and technology at six global companies and provides a detailed breakdown of the "four stages of supply management transformation and maturity."  Emptoris’ customers and solutions were the only ones featured in the highest developed stage of maturity in the report, "value-driven supply management."

back to press releases