CIMdata PLM Industry Summary Online Archive
29 January 2013
Financial News
Arena Solutions Announces Record Fourth Quarter Results
Arena Solutions finished its fiscal fourth quarter of 2012 with growth in subscription revenue, existing-customer renewals, new customer wins, and partner channel sales.
Arena, developers of cloud PLM applications, posted total subscription sales for the quarter that grew by 31 percent compared to the previous year. The company achieved a net new renewal rate of 132% for the fourth quarter, while more than 100 existing customers expanded their implementations.
“Arena’s outstanding results reflect customer confidence in the unique features the company’s systems offer,” says Craig Livingston, CEO at Arena. He cites the low initial costs of Arena’s cloud PLM applications, the ease of system deployment, and the functionality that connects customer data to supplier information ecosystems. “Arena’s applications help customers cost-effectively innovate and competitively deliver more profitable products to their markets,” he explains.
Strong Performance
- Total subscription sales: Arena posted positive growth in subscription sales, those revenues the company expects to realize year after year. Arena’s total subscriptions for the year grew by 21 percent compared to the previous year. Total subscription sales for the fourth quarter increased 31percent over the fourth quarter of 2011.
- New subscription sales: New subscription sales were up 89 percent in the fourth quarter over 2011 fourth-quarter results, and up 30 percent for the full year.
- Partner channel sales: Sales reached record levels in 2012, up 34 percent over 2011—the previous best year.
- Customer expansion: During the quarter, more than 100 existing Arena customers added to their Arena configurations. “This high number of customer expansions demonstrates a solid match between Arena’s new product releases and what customers want in cloud PLM applications,” says Livingston.
- Early-stage, “micro-emerging” performance: Subscriptions to these companies reached record levels as they took advantage of Arena promotional programs. Sales doubled over the previous year’s fourth quarter result and beat the previous high-water mark for a quarter by 33 percent. “Emerging companies are extremely focused on innovation and efficiency—both key values delivered by Arena’s cloud PLM applications,” Livingston explains.
New-customer wins
Arena added 41 new customers during the quarter. “Despite today’s economic uncertainties, increasing numbers of innovative manufacturers understand that Arena’s feature-rich cloud PLM applications will help them succeed,” says Livingston. The following companies are among Arena’s new customers.
- Alta Devices, maker of efficient, thin and flexible mobile power technology
- Kymeta, provider of simplified connections between mobile users and broadband satellite communications services
- Supersonic Image, a multinational medical imaging company; developer of an ultrasound system that enables the user to detect, characterize and eventually treat palpable and non-palpable masses
- Totus Solutions, provider of outdoor lighting based security platforms
- Matrix Design, maker of safety and productivity technology for underground mining products and services
- Anoto, provider of digital pen technology enabling fast, reliable transmission of handwritten text and illustrations into digital format
- Gridco Systems, developer of a new generation of utility-scale power management systems
“The success of the recent quarter underscores Arena’s commitment to maintaining focus on delivering cloud PLM features and applications that meet customers’ needs,” says Livingston, citing the company’s release of its latest update to its premier product, BOMControl, during the quarter. “With the right products, the right focus on assuring customer success, and the right management team with deep domain experience, Arena has the elements in place to continue to grow at a high pace.”
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