blankmind,
Thanks for the summary. I just listened to the CC myself and wanted to post my thoughts here too.
Although sales were grew 43%, hiring didn't keep pace. Employees up to 854 from only 825. They mentioned they will accelerate hiring going forward and (and must do so to sustain growth IMO). Looking to hire salespeople, consultants, and support staff. Consultants are in high demand right now. Demand exceeds capacity.
WIN RATE 84%.
Alot of interest in eMRO, but no significant revs yet. This is an area where DSTM begins getting into Gorilla territory because eMRO begins creating an enhanced value chain, and as more people use the system, more suppliers will get on the system, more parts will become available, and more people will find greater value in the system... and DSTM looks to get a small commission of all activity in the eMRO network. Interesting. I hope this gains acceptance. They're starting with small customers to learn the processes they need. If I remember correctly they plan to spend around 3 million in R&D on eMRO this yr.
13 deals >$100,000
5 deals > $500,000
2 or 3 deals > $1 million (I think it was 2 or 3 deals, didn't catch which)
MP5 was singled out as having strong results and strong backlog. Telecom vertical was singled out as being very strong. Overall mkt share is still growing.
99 expectations
Licence rev gro 20-25%
Services gro 30-35%
Total rev gro 25-30%
DSTM grows while competitors stumble. Management feels this is due to the flexibility inherent in their products vs. competitors. MP5 singles out as being very strong in this aspect.
Developement of euro should help operating efficiency in Europe. There seems to be alot of focus being put on improving performance of international.
Quarter was less backend loaded than prior quarters (55% of sales in last month). This fits well with the characterization that demand exceeds capacity.
some of the suppliers mentioned using eMRO are Fastenal, Wesco, and Applied. I'm familiar with Fastenal, but don't know about the others. Plan to examine as I get time. If anyone can fill in some of the blanks on eMRO I'd appreciate it. It sounds like a sizeable portion of the company's future is being bet on eMRO.
Shane |
