Company Strategy of Customer Focus Continues to Generate Industry-Leading Performance
INDIANAPOLIS, August 1, 2005 — Made2Manage Systems Inc., a leading provider of enterprise-class business solutions that deliver ongoing value for manufacturers, today announced another quarter of outstanding results. A seasoned management team, a refined strategy focused on customer care, and increasingly efficient operations have helped the company achieve its eighth consecutive quarter of profitability since becoming privately held in August 2003.
For the quarter ended June 30, 2005, Made2Manage Systems’ revenue increased 27 percent, including organic growth of 11 percent, compared to the second quarter of 2004. Quarterly software revenue was up 19 percent, and revenue from Made2Manage Systems’ professional services—including consulting services, technical consulting, and development services—increased by 35 percent. Operating earnings were 62 percent higher than 04Q2, and EBITDA (earnings before interest, taxes, depreciation, and amortization) results improved 47 percent over 04Q2.
“We had another outstanding quarter,” said Jeff Tognoni, CEO of Made2Manage Systems. “When I compare our numbers to those published by our competitors, I see that we are leading the industry across multiple categories. Our results reinforce our company strategy of fostering productive and lasting customer relationships.”
Made2Manage Systems continues to execute on the customer-centric operations that are driving unprecedented performance. In the second quarter, the company introduced 15 new instructor-led virtual courses and 17 new streaming/recorded courses via M2M University—the company’s renowned training and education program. Eighteen of the new courses were focused on Made2Manage Systems’ recently acquired product, The Manufacturing Manager (TMM), an enterprise-class manufacturing, distribution, and financial management solution for plastics processors. The new courses helped account for a five percent increase in the amount of education delivered over 05Q1.
“Although the TMM education rollout was one of many customer-driven initiatives executed in the second quarter, it really stands out as a highpoint,” said Ray Vallillo, vice president of services and support for Made2Manage Systems. “We’re pleased to have given our TMM customers another piece of the value that our Made2Manage users already receive as part of their annual maintenance agreements. Now, our TMM customers with a valid maintenance agreement can begin extending the value of their systems through education and training—right from the comfort of their own desks.”
Other highlights Made2Manage Systems saw in the second quarter of 2005 include:- More than 100 customers volunteered to participate in 14 feature design teams for future releases of both the Made2Manage system and TMM, helping to facilitate customer-driven product development.
- Two releases, Made2Manage Version 5.52 and TMM Version 9.2, escalated further in the company’s beta testing and quality assurance processes.
- The company achieved 16 customer win-backs (i.e., customers that chose to reinstate their annual maintenance contracts), compared to an average of 11 per quarter in 2004.
During the first half of 2005, Made2Manage Systems exceeded its plan for new customer additions. New Made2Manage Systems customers continue to join the Made2Manage Systems family of customers, citing the company’s customer-centric operations as an industry-leading differentiator.
According to Damon Basey, quality assurance manager for Banjo Corporation, a Crawfordsville, Ind.-based manufacturer of liquid handling products and new Made2Manage Systems customer, the price of an enterprise business system is not what should drive the purchase decision.
“From Banjo’s perspective, when you’re spending that kind of money, it’s more about the people you’re going to be dealing with on a day-to-day basis,” said Basey. “The Made2Manage product did everything we wanted it to do and was going to be a highly advantageous upgrade for our company. The difference for us was the integrity and candor of the people we met from Made2Manage Systems, as well as the company’s services and support offerings. Made2Manage Systems’ customer Web site, including the online education offerings, was unmatched. We started with 17 vendors, and Made2Manage Systems was the only company that provided me with a list of more than 10 customer references. I had my pick, and we actually visited one of those references and watched them operate the software. Every person we talked to who used the system loved it.”
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. Visit the Made2Manage Systems Web site at www.made2manage.com. Made2Manage Systems may be reached via e-mail at info@made2manage.com or by calling (800) 626-0220.
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