Contact:
Melissa B. Stahley
Made2Manage Systems
(317) 249-1270
mstahley@made2manage.com
Strategy to Provide Customer Care Proves Meaningful to Both Customers and SME (Small and Midsize Enterprise) Market
INDIANAPOLIS, April 27, 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 ended March 31, 2005.
In its seventh consecutive quarter of profitability since becoming a privately held company, Made2Manage Systems generated a 36 percent increase in revenue over the first quarter of 2004, 22 percent of which was organic. Operating earnings increased 100 percent and net income increased 105 percent over first quarter of 2004. Positive cash flow from operations for the first quarter of 2005 exceeded the prior year’s first quarter results by 31 percent.
“Our unique focus on fostering productive and lasting client relationships is proving meaningful to both our customer base and the industry,” said Jeff Tognoni, CEO of Made2Manage Systems. “Our operating results continue to support our company strategy quarter after quarter.”
Following are operating results for the first quarter of 2005 compared to the same period in 2004:- 42 percent increase in software revenue.
- 17 percent increase in sales to existing customers.
- 37 percent spending increase by Made2Manage customers on professional services, including a 67 percent increase in consulting service sales.
Other first quarter highlights include:- 14 customer win-backs (i.e., customers that chose to reinstate their annual maintenance contracts), compared to an average of 11 per quarter in 2004.
- 40 new system implementations conducted, with an 89 percent “excellent” or “good” consulting service satisfaction rating from customers.
- 30 percent decrease in response time to customer support phone cases.
- 7 percent staffing increase, after an 11 percent staffing increase in 2004.
During the first quarter of 2005, Made2Manage Systems exceeded its plan for new customer additions by 43 percent. Tognoni was pleased with Made2Manage Systems’ first quarter new system sales results. “It’s very costly for a small manufacturer to switch to another business system, and that’s what our competitors rely on to retain customers,” he said. “One of today’s common industry practices is to starve customers of resources in favor of overspending on new client acquisition. It is particularly prevalent among public software companies that feel pressure from securities analysts to measure performance on the number of new customers added each quarter. Made2Manage Systems turns this industry practice on its head and, instead, spends the bulk of its resources on caring for current customers. We rely on our brand and customer referrals to drive new business, and this strategy is clearly working. We are making record numbers of new system sales—despite spending less on sales and marketing. As a result, we’ve become the most profitable SME software vendor by a wide margin.”
New customers continue to be pleased with Made2Manage Systems’ customer-centric operations, which hinge on customer-driven product functionality. According to Philip Cahoon, CFO of CentraLite Systems Inc., a new Made2Manage Systems customer and manufacturer of centralized lighting and home control systems, “CentraLite Systems is a small manufacturing, sales and service company with big-company aspirations. We purchased the Made2Manage system to give stability to our transaction environment and to get information to users as needed. We went live in April and are realizing that we have only scratched the surface in terms of what the system offers. Our go-live process was completed with very little overtime. We were extremely pleased with the input from our Made2Manage implementation consultant.”
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 customers across the United States, Canada, and the United Kingdom, Made2Manage Systems services manufacturers 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. |
