Transcript Module - Q&A 5 NETP 2Q CC
Questioner: Robertson Stephens (Lowell Singer)
Hi Stephen and Tom, nice quarter! Could you talk a little about how the ASP model - sort of the integrated personalization model - will better enable you competitively. And do you view that as more of a platform that will allow you to take customers from your competitors, or to bring people online who are not really using any service beforehand? How do you look at the source of the volume for that?
Stephen Snyder, CEO: Yeah. Well its actually both. We see it as an opportunity for the large multi-channel retailer to get up to speed very quickly through the ASP and grow into enterprise-class software. For example, the Intelligence Channel, in addition to being limited by data-size is also limited by the number of reports that can be produced. Once every demand and appetite increases, we see upselling to our enterprise solution.
OK. And Tom, I think I wrote the numbers down correctly , I was just trying to compare Knowledge Management in Q1 versus Q2 as a percent of revenue - did it decline in the quarter?
Tom Donnelly, CFO: Yeah, it did decline. That's not to say the pipeline in the number of ongoing pilots has declined. Again, our sales model is to do a pilot and when we announce a customer... when its actually live and up and running, so, although....because its a new product the percent of revenues may be choppy, the pipeline is very strong for that business.
Could you give us an update with regards to P&G and JP Morgan, which, I guess, are two you've announced using that product.
Tom Donnelly, CFO: Yes, P&G are fully deployed on all of their....they've now bought a licence for all of their R&D organisations - 16,000 seats - and they're considering going broader beyond their engineering organisations. And JP Morgan is rapidly developing their financial portal...strategy which uses the product to, in essence, better serve the buy side, if you will.
And as you look out in terms of visibility where do you see the pockets of strength right now versus a quarter ago?
Tom Donnelly, CFO: The visibility is...continues to be strong for our E-comm offering. The pipeline for our AD (?) product is strong. The pipeline for our Knowledge Management product is strong. And I think the ASP model is going to get some leverage, not only from inside sales efforts, but also through partnerships where we can really access new markets of small dot.coms, if you will. So, as I look, those would be the four areas.
OK. Thanks a lot, guys.
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Note:
Having a transcript of the CC in our archives would be useful. From time to time, I will transcribe a module until the whole CC is available in one document. If anybody would like to check my transcript against the audio on http:///www.netperceptions.com (go to "Investors - Audio Archives") I would welcome corrections. Also, if anybody would like to contribute a module, please do |
