Excerpt concerning new customer adds and competitive environment from Morgan Stanley internet analyst.
"Customer Acquisition --- Vignette added 97 new customers during the quarter for a total of 393 customers --- an increase of 33% Q/Q. The number of new customer adds was up from 67 in CQ2. The company has stated that it intends to continue to spend aggressively in sales and marketing, which should sustain the rate at which new customers are being added. Conservatively, we continue to forecast new customer growth in the 40-45 range for the next few quarters.
Significant new customers added in the quarter include PricewaterhouseCoopers, Baan U.S.A., The Industry Standard, and Allianz, CheckFree, AT&T (Canada), RR Donnelley & Sons, and China.com. Vignette also received significant follow-on orders from existing customers including Amway, Asymetrix, Compaq, Encyclopaedia Britannica, First Union, Land's End, Inc., Motorola, New York Life, Nokia, Postbank, Qualcomm, Shopnow.com, Tribune Interactive, and US West. Vignette's customers continue to be well- balanced between Internet start-ups and Fortune 2000 companies --- approximately 1/3-2/3, respectively."
COMPETITIVE ENVIRONMENT:
Vignette states that the company does not see any competitor in a majority of the deals being pursued or closed by the company. Broadvision is the company that Vignette sees most in competitive situations and Interwoven less frequently. The sales cycle continues to average in the 60-day range for Vignette. |
