Kana Communications (KANA) 32 15/16: Kana is trading up $4 in the pre-market as the company
announced that Cisco has chosen Kana as its enterprise relationship management (eRM) solution. Kana
solutions deliver personal portals that offer customers a global view of their communications and
relationships including a full set of communications channels such as e-mail, Web, chat, instant message,
VOIP, phone and person-to-person...The Cisco deal is a coup for Kana which has been signing up
some top notch customers lately including Abbott Labs, Addidas, AT&T, British Telecom, Nikon,
Tiffany and QVC. By signing up large customers, Kana should be able upsell and cross-sell into its
installed base of customers. Kana is expanding its footprint in the eRM market, and now provides
solutions to over 700 Internet and Global 2000 companies, including 8 of the 10 most trafficked sites
on the Internet. In the second qtr, Kana signed up over 125 new customers...It is becoming apparent
that its recently announced strategic alliance with Andersen Consulting is helping the company penetrate
more Fortune 2000 companies...The company has been putting up some strong numbers as its Q2 pro
forma revenue was $28.7 mln, up 301% yoy and 38% sequentially. Kana's on-line business, in
particular, continues to perform well as revenue related to that business nearly doubled again during the
quarter. Furthermore, the quality of revenue was encouraging as licensing revenue accounted for 63%
of revenue for the quarter...Beware that Kana is a volatile stock as it is trading well off its $175 high in
March and the stock has been cut in half over the last month although Q2 was a good indication that the
company is at least on its way to profitability. -- Robert J. Reid, Briefing.com
I'm in today. Kana needed to add a major player like CSCO, MSFT, or INTC.
Jack |
