Recognition Still Looks For Growth In Crm Market

Computergram International, Feb 3, 1999

Anyone considering investing in Recognition Systems Group Plc, the UK-based neural network company, would do well to discount the company's own record. For an outfit that specializes in Customer Relationship Management (CRM) software that helps companies recognize buying patterns and trends, Recognition has a poor record in predicting how its own potential customers will behave.

Revenues have consistently failed to keep pace with the company's expectations and last year showed just 1.9% growth to 788,000 pounds. What inspires some confidence in Recognition is that venture capitalist, 3i Group has come along, rather late in the day, and invested 3m pounds to give it a 30% stake in the company. 3i has a good record in predicting trends and it sees CRM as one of the next big growth areas. Recognition has recently signed a deal with Macromedia Inc that it sees as a springboard into internet commerce. Chief executive Bryan Black believes they are now in a position to grow the company with increased penetration in the US and expansion into Europe.