Changepoint Announces Record Fourth Quarter: Breaks Even and Reports Highest Ever Quarterly Revenues; Ends Fiscal Year 2001 With Over 300 Customers

Business Wire,  August 14, 2001  

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Business Editors

TORONTO--(BUSINESS WIRE)--Aug. 14, 2001

Changepoint Corporation, a leading provider of Web-based business process automation solutions for IT services organizations, today announced results for the fiscal fourth quarter and year ended July 31, 2001.

In the fiscal fourth quarter, Changepoint signed 23 new customers, including Clarkston Group, Marconi Corp. and Kronos Inc. in North America, and 1eEurope and Differntis in Europe. New deals comprised of software licenses, and ASP and channel sales. The company also received orders for additional licenses from 28 current customers, including Sprint Canada, NetStar Communications Inc. and Morris Group. Sales of Changepoint's software doubled from the previous quarter, which ended April 30, 2001.

"While many of our competitors continue to report spiraling expenditures and substantial losses, Changepoint breaks even with healthy sales and strong operational performance," said Gerry Smith, President and CEO of Changepoint Corporation. "We recognized early on that being the dominant player in the PSA market is not so much about being public, as it is about providing the best product and customer care, while at the same time achieving financial success."

Q4 2001 Milestones

- Signed 23 new customers, including three ASP

- Signed first ASP client in Europe

- Reorders from 28 existing customers, including two ASP/hosted

- Channel partners signed eight deals in the quarter

Fiscal Year 2001 in Review

- With more than 300 customers and over USD$19 million in

revenues at fiscal year-end 2001, Changepoint is poised for

continued growth and profitability. Total revenues increased

by more than 50 percent compared to fiscal year end 2000. "The

fifty percent growth was especially rewarding considering it

was pure organic growth - achieved in tough economic times

through new customer wins and reorders without the need for

acquisitions," added Smith.

- Signed largest full-function PSA implementation deal with NCR

Corp. NCR selected Changepoint PSA software to manage its

complete professional services business and IT department.

- The company succeeded in launching its offering across Europe.

Changepoint Europe now has more than 30 clients in nine EMEA

countries, including the United Kingdom, France, Germany,

Spain and Ireland. Changepoint Europe contributed more than 15

percent of Changepoint's total revenues.

- In addition to providing full multi-currency, multi-tax

support, Changepoint launched Version 6.0, which delivers full

support for English, French and German language versions,

robust revenue recognition functionality, greater flexibility

in resource management and powerful business analysis

capabilities. "Changepoint is the only full-function PSA

product that has been localized for the European market, and

our commitment and strategy has helped us take the lead in

Europe in the past year in terms of market share and profile

of customers," said Ayman Gabarin, Vice President, EMEA,

Changepoint Corporation.

- The company expanded its mobile offering in response to

growing market and customer trends towards mobility solutions.

Changepoint launched the Changepoint Palm(TM) client and

released a second-generation offline browser client to support

the needs of the mobile knowledge workers within its customer

base.

- Changepoint continued to build its presence in the market

through strategic channel partnerships with companies such as

SOFTRAX Corporation, Aston Group, and Signature Systems,

focusing on value-added or complimentary offerings for

professional services organizations. Changepoint channel

partners contributed approximately 10 percent to total

revenues.

About Changepoint Corporation

Changepoint Corporation provides comprehensive Web-based business process automation solutions for corporate IT departments and IT professional services organizations to manage projects, people and budgets effectively. IT services organizations use Changepoint to automate their internal business processes, source and procure valued resources, manage contractors and collaborate with customers and partners. By integrating the critical processes of their services supply chain and all the people involved in delivery of IT services, these organizations can realize greater operational efficiencies and maximize cost-effectiveness.

Headquartered in Canada, Changepoint has offices in the United States, United Kingdom and France. For additional information, visit our web site at www.changepoint.com

NOTE TO MEDIA AND ANALYSTS: All Changepoint news releases are available on the Internet, via the Changepoint Corporation Web site at http://www.changepoint.com. Screenshots are also available on Changepoint's Web site. Additional information on Changepoint can be accessed on-line, and by sending email to marketing@changepoint.com or calling 1-905-886-7000.

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