Synygy Celebrates 17th Anniversary and Announces Strongest Financial Position in the Company's History

Business Wire, Jan 28, 2008

CHESTER, Pa. -- Synygy Inc., an authority on sales performance management, celebrated its seventeenth year in business and announced that the company is in the strongest financial position in its history. Going into 2008, as a result of Synygy's subscription-oriented business model, the company's financial position is the most resilient it has ever been:

* Even with a 62% growth in non-subscription revenue in the second half of 2007 over the first half of the year due to new project implementations, recurring subscription revenue continues to be over 70% of total revenue.

* Total revenue under contract at the start of 2008 was the highest in the history of the company, equal to 86% of total 2007 revenue (up from 80% of 2006 revenue booked at the start of 2007).

* Revenue under contract for the first quarter of 2008 is already 95% of first quarter 2007 revenue, an early indicator of 2008 being another record-breaking year.

* Both operating profit and EBITDA continue to be strong, although down slightly as a percent of revenue due to investments necessary to prepare for future growth.

* With expenses growing a bit faster than subscription revenue, subscription revenue as percent of cash expenses fell somewhat, but continues to be at above 80%, indicative of stable, well-managed operations.

This marked the third anniversary of Synygy's strategy to shift its business model to focus on providing sales compensation and sales performance management solutions to companies with at least 1000 salespeople, brokers, or agents (rather than smaller-sized companies) for a fixed subscription fee (rather than an up-front software license fee). This business model, combined with exceptional client service and an extremely high contract renewal rate, demonstrates the resiliency and strength of Synygy's approach to serving its clients.

"We are extremely pleased with our success at transitioning our business model over the past three years and our solid financial position going into 2008," commented Mark A. Stiffler, president and CEO of Synygy. "All of the investments in people, processes, and technology that we made over the past few years really began to pay off in 2007 and will continue to provide returns for our employees and clients in 2008 as we release new software modules and launch a broad range of new services aimed at improving the effectiveness of our clients' sales forces."

Synygy's seventeenth year was a strong one, with numerous accomplishments strengthening the foundation for continued growth:

* Synygy successfully completed the rapid implementation of dozens of solutions for managing sales compensation, sales quotas, sales objectives, sales territories, sales reporting, and sales analysis.

* Synygy renewed nearly all client contracts in 2007, several of which went through a competitive selection process in advance of expiring Synygy contracts.

* Synygy achieved an exceptional 25% response rate to its Executive Education campaign from target accounts in the insurance, telecommunications, pharmaceutical, high tech, and other industries, with the number of responses more than doubling over its 2006 campaign.

* Synygy experienced record attendance at the Sales Performance Conference (www.salesperformanceconference.com) from executives at the company's target accounts.

* Synygy released the newly architected versions of Synygy Reports[TM], Synygy Data[TM], and Synygy Objectives[TM], plus the new Synygy Portal[TM] -- a web-native application with an integrated view of compensation, quotas, objectives, territory, and performance information and analytics.

* Synygy scored the highest possible rating in an independent security audit of its data center operations.

* Synygy continued to garner positive industry analyst coverage, receiving a "Positive" rating in Gartner's MarketScope for Sales Incentive Compensation Management Software, 2007, as well as favorable write-ups in reports issued by IDC and Forrester Research.

* Leveraging a global support team and world-class data center operation, Synygy introduced Business Continuity Services for companies that need to protect critical data access and business connectivity functions.

* Building on a decade of experience designing, coding, testing, supporting, and hosting web-native software products, Synygy introduced On-demand Development Services for any company interested in launching an on-demand or software-as-as-service (SaaS) offering.

* In addition to its previously received ISO 17799 certification, Synygy successfully completed a SAS70 Type II examination, becoming the first and only sales compensation and sales performance management provider to receive such certification of its software hosting services, process management services, and internal controls.

* Synygy's managed services offering, which allows large companies to outsource the management of their sales compensation plans and eliminate the risks of using installed or on-demand software solutions, continues to be Synygy's most popular solution.