--------------------------------------------------------------------------------
Related Quotes
CNQR
4 15/16
-5/8
delayed 20 mins - disclaimer
Thursday June 8, 1:00 pm Eastern Time
Company Press Release
SOURCE: Concur Technologies, Inc.
Concur Technologies Announces a New Operating Plan
Announces the Appointment of Stephen A. Yount as Executive Vice President Of Operations and CFO
REDMOND, Wash., June 8 /PRNewswire/ -- Concur Technologies, Inc. (Nasdaq: CNQR - news), a leading provider of business-to-business solutions, today announced that it is implementing a new operating plan designed to reduce total expenses and focus the Company on its core products and services.
``Concur sells its solutions under a traditional license model and as an application service provider (ASP),'' said Steve Singh, Concur's chairman and chief executive officer. ``We are experiencing strong customer-driven demand for our solutions delivered as an ASP service and, over the past six months, we have expanded our ASP customer base by more than 150 percent, from 60 to over 150 customers.''
The Company's ASP solutions are designed to generate a multi-year recurring revenue stream over the life of the customer contract, but provide no up-front license fees. Concur's ASP solutions generate a very different revenue stream than the Company's traditional license solution, in which substantially all of the revenue applicable to the customer contract is recognized at the time of purchase.
``The shift in our revenue model from traditional license business to ASP business will produce stable and predictable revenues in the future, but in the near term it results in lower revenues,'' added Singh. ``Therefore, we are implementing a new operating plan to bring expenses in line with the shift in the Company's revenue model. We have a solid balance sheet and the new operating plan will allow Concur to reach its profitability target with a substantially stronger cash position.''
As part of the plan, the Company announced a workforce reduction of 68 employees, which represents approximately 13 percent of the Concur employee base. Due to the short-term impact of the Company's shift to the new operating plan and special charges associated with the workforce reduction, the Company expects results for its fiscal quarter ending June 30, 2000, to be below current Wall Street expectations of revenues in the range of $12.8 million to $14 million and loss per share of $0.70.
The Company also announced that Stephen A. Yount will join the Company as executive vice president of operations and chief financial officer. Yount brings to the Company more than 18 years of financial management experience. Most recently, Steve was executive vice president and CFO of mediapassage.com, a business-to-business eService provider. Prior to joining mediapassage.com, he was executive vice president and CFO of INTERLINQ Software Corporation, an enterprise software developer.
``Steve brings to Concur a strong combination of financial, operational and managerial expertise, as well as a deep understanding of the needs of the investment community, and will help drive Concur to the next level of growth,'' said Singh. ``Steve will play an integral role in the further development and implementation of our new operating plan, and we are pleased and excited to welcome him to the Concur executive team.'' |
