Once on a par with Witness Systems, Leatherhead, UK-based Eyretel left itself vulnerable to a takeover by a mediocre financial performance. Slow to react to the downturn in the industry, it turned in a net loss of 5.4m pounds ($8.6m) on revenue 11.5% lower at 21.9m pounds ($34.8m) in the six months to September 30. It made a 10% cut in its 340-strong workforce in a bid to return to profitability in the second half.
By contrast, Witness Systems managed to turn itself around in 2002, and in the year to December 31 reported net income of $48,000, up from a loss of $5.2m on revenue up 8% at $67.7m.
The combined company will be targeting a global call recording market that market analyst group Datamonitor Plc predicts will grow from $320m in 2002 to $540m in 2007, at a CAGR of 10.8%. The combined group would bring together Eyretel’s strong position in the EMEA and Asia/Pacific markets with Witness Systems’ strength in North America.
The company’s major competitor is Ra’anana, Israel-based Nice Systems Ltd, which in August 2002 expanded its own operations with the $55m purchase of the assets of Thales Contact Solutions.
Source: Computerwire
