Company Strategy on Customer Care Continues to Generate Industry—Leading Performance
INDIANAPOLIS, November 3, 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 nine months and quarter ended September 30, 2005.
In its ninth consecutive quarter of profitability since becoming privately held in August 2003, Made2Manage Systems generated an increase in total revenue of 14 percent, including organic growth of 10 percent, compared to 04Q3. For the third quarter 2005, revenue from Made2Manage Systems’ professional services—including consulting services, technical consulting, and development services—increased by 13 percent, and software revenue to existing customers increased by 34 percent. Third quarter operating earnings increased by 56 percent and EBITDA (earnings before interest, taxes, depreciation, and amortization) results improved by an impressive 40 percent, both compared to the same period last year.
Year to date, this represents a 25 percent increase in revenue, including organic growth of 14 percent, compared to the nine month period ending Sept. 30, 2004. The number of sales year-to-date to new customers increased by 64 percent when compared to the same period last year.
The following are additional highlights year-to-date when compared to the same period of the prior year:- Software revenue increased by 19 percent.
- Professional services revenue increased by 28 percent.
- Operating earnings increased by 70 percent.
- EBITDA increased by 50 percent.
“Our unique focus within the small and midsize enterprise (SME) market is on developing and nurturing lasting client relationships,” said Jeff Tognoni, CEO of Made2Manage Systems. “These most recent operating results continue to validate our focus and demonstrate the value we bring to the marketplace.”
In line with its strategy of enabling customers to achieve continuous business improvement, Made2Manage Systems offers unique services designed to help customers optimize their system for maximum performance with current business conditions.
Merit Gear Corporation, a mixed-mode manufacturer of gears and gear assemblies for customers in the robotics, compressors and blowers, and construction equipment industries, has been a Made2Manage Systems customer since 1999. Due to natural employee attrition and the need for enhancements in their business processes, Merit Gear turned to Made2Manage Systems for help in optimizing their ERP system. Ruth Nelson, treasurer, explains, “Employee turnover reduced our in-house business systems expertise. In addition, we needed to increase our productivity by examining and changing our business processes.”
Merit Gear requested the M2M CheckUp service and as a result of an initial assessment, a seasoned Made2Manage consultant recommended numerous opportunities for improvement, which included performing data cleanup, streamlining the sales and service areas online, and expanding their knowledge of overall system functionality.
“I would highly recommend the [M2M] CheckUp service to other Made2Manage customers, especially for those customers who have experienced changes in their manufacturing environment and suspect that they can better capitalize on their system investment,” explains Nelson. “The results have led to an increase in productivity, which prompted our president to say the service was ‘well worth 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.
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