Strategy to Provide Total Customer Care Positions Company for Continued High Performance and Growth
INDIANAPOLIS, January 26, 2005 — Made2Manage Systems Inc., a leading provider of enterprise-class business solutions that deliver ongoing value for manufacturers, today announced outstanding operating results for the quarter and year ended December 31, 2004.
In 2004, Made2Manage Systems achieved the highest net income levels in the company’s 19-year history. The company also achieved its sixth consecutive quarter of profitability, with a 34 percent increase in revenue over the fourth quarter of 2003. For the year, operating income increased by $4.0 million over 2003 and generated $8.7 million in positive cash flow from operations.
“We’re pleased that our commitment to operational excellence in 2004 has financially repositioned Made2Manage Systems to better serve our customers,” said Jeff Tognoni, CEO of Made2Manage Systems.
Tognoni projected that the company’s financial stability will continue in 2005. “We have just completed our annual planning process and are expecting double-digit growth on both the top and bottom lines,” he said.
Throughout 2004, Made2Manage Systems has had a singular focus on improving customer satisfaction and loyalty levels. “We believe we are the only truly customer-focused ERP solutions provider in the SME [small and midsize enterprise] market,” said Tognoni. “We’ve changed internal processes, including designing a proactive customer account management model, adding unlimited education to customers’ standard maintenance agreements, and revamping our product management processes to include customer input at every phase. We’ve hired additional employees, adjusted our spending, and put measurements in place. The results are already showing.”
Indeed, Made2Manage Systems produced significant operating metrics for both the year and fourth quarter ended December 31, 2004, including:
- 24 percent increase in purchases of software by existing Made2Manage customers over 2003 results.
- 32 percent increase in purchases of professional services by existing Made2Manage customers over 2003 results.
- 46 customer win-backs (or customers that have chosen to reinstate their annual maintenance contracts) in 2004.
- 84 new system implementations and a 94 percent “very good” to “excellent” consulting service satisfaction rating by Made2Manage customers in 2004.
- 11 percent staffing increase within service, support, and research and development departments in 2004.
- Significantly improved customer satisfaction and loyalty metrics over 2003 results.
- More than 50 manufacturers added to a 2000-strong customer base in 2004.
- Won 50 percent of all purchase decisions entered into in the fourth quarter of 2004.
Tognoni believes that Made2Manage Systems’ customer focus will continue to translate into referrals for new business. Darin Lampson, software engineer for Veris Inc., a Niwot, Col.-based engineer and manufacturer of flow measurement instruments and new Made2Manage Systems customer, agreed.
Veris purchased the Made2Manage® Enterprise Business System in May of 2004 and completed its implementation five months later in November. “We had been growing, and the data entry duplication we were doing within our former system wasn’t going to meet our needs in the long term,” said Lampson.
Lampson said that Made2Manage Systems differentiated itself from other software vendors because of the company’s focus on the needs of its existing customers—including customer-driven product quality and enhancement. “I even asked a vice president of one of the other software vendors we were evaluating what his company was focused on,” said Lampson. “The VP told me he was focused on ‘getting new customers.’ Well, as soon as I buy, I become an old customer, so where does that leave me?”
Lampson added that he and his colleagues were extremely impressed when they visited Made2Manage Systems’ headquarters in Indianapolis and saw how the Made2Manage support team worked. “We knew that support and service was going to be important to us based on previous experiences. So far, we’ve been thrilled with Made2Manage Systems’ implementation strategy and education and training offerings on M2M Expert.”
About Made2Manage Systems Inc.
Made2Manage Systems delivers high-quality, easy-to-use, fully integrated business systems to manufacturers seeking to improve operational efficiency, customer satisfaction, and financial performance while managing their business growth. Unlike other ERP software vendors that focus on new technology trends, Made2Manage Systems delivers ongoing value to its customers by enabling them to achieve continuous business process improvements. With more than 2000 manufacturing customers across the United States, Canada, and the United Kingdom, Made2Manage Systems services a variety of industries by delivering functionality that meets the unique specifications of more than 30 manufacturing industries, including industrial and commercial machinery, rubber and plastics, electronics, and fabricated metals. |
