In the first six months of this year, revenue increased 145.2% to $29.8 million, more than the $26.6 million achieved in the whole of 2002. Its half-year net loss was $255,000, down from $8.5 million. However, Callidus warns that after its IPO it expects to significantly increase expenses to expand the business.
The San Jose, California-based company said it sees a huge market opportunity, and industry analyst AMR estimates that $1.5 trillion of pay-for-performance compensation is paid annually by European and US companies.
Callidus said that the process of designing, maintaining and managing pay-for-performance programs is complex and time consuming. Large businesses need to calculate, report and pay sales commissions and incentives as often as weekly, based on a large number of different compensation plans for thousands of internal and external payees. For large and complex pay-for-performance programs, it said these payments could represent millions of separate calculations per pay period, with total payouts ranging from $100 million to over $1 billion annually.
It said its principal competitors are vendors of EIM software, such as Centive, Motiva and Synygy, ERP operators such as Oracle [ORCL], PeopleSoft [PSFT] and SAP, and CRM companies such as Siebel Systems [SEBL].
It was dismissive of the efforts of ERP and CRM system providers to provide applications to manage pay-for-performance programs. It said they have not developed the domain expertise required to meet the requirements of complex programs.
Callidus claims an installed base of over 75 customers includes industry leaders in the insurance, retail banking, telecommunications, distribution, and manufacturing and technology industries. Among its customers are Allstate [ALL], JP Morgan Chase [JPM], AT&T Wireless [AWE], Airborne Express, and Apple Computer [AAPL].
This article was based on material originally published by ComputerWire.
