Dutch dealing room analytics vendor Brainpower says it will reach Ebitda break-even in 2004, as cost-cutting measures initiated in 2003 counteract revenue declines to narrow annual losses.
Revenues equaled €1.75 million for the fourth quarter 2003, up 23% from the previous quarter but down from €1.85 million in the year ago period. Ebitda losses narrowed substantially from €1.29 million in the year ago period to a deficit of €403,000 in the fourth quarter 2003.
For the year as a whole, revenues equaled €6.05 million, down from total revenues of €7.55 million in 2002. The net loss for the full year 2003 was €5.81 million, 30% lower than the net loss of €8.30 million in 2002.
The company managed to cut 28% from operating costs during the year and says it will continue to focus on cost reduction in the year ahead.
By year-end 2003, Brainpower's total backlog of booked revenue to be recognised over the next two to three years equaled €7.2 million, up from €6.6 million one year ago.
Bill Holwell, Brainpower CFO comments: "Historically, Brainpower's licenses are predominantly term arrangements; however we are seeing some prospective customers request a perpetual license with an upfront fee instead. Looking ahead, whilst we expect the levels of new business and full year revenues to grow, we anticipate some variability in the growth of our quarterly revenues."
The company ended the year with 116 customers, the ten largest accounting for more than 58% of total revenues in the fourth quarter of 2003.