Red Brick Systems Inc, the Los Gatos, California-based data warehousing company says it plans to ramp up its analytical applications offerings in an attempt to return the company to profitability. Like many other data warehousing outfits, the company wants to cash in on the growing demand by users for pre- packaged, customized analytical applications. Paul Rodwick, Red Brick’s VP marketing told ComputerWire: The market is evolving to a point where customers want to buy ready-made solutions rather than a set of tools and components that they then have to combine into applications themselves. Rodwick said Red Brick already partnered with many front-end analytical application vendors, such as Brio Technology Inc and Information Advantage Inc, but that it was currently looking at ways to address more vertical markets. He said the company was due to make an announcement two to three weeks from now giving details of new partnerships. He also hinted that Red Brick might be unveiling analytical application software of its own, although he wouldn’t confirm or deny if that was the case. Last week, the company also announced its Red Brick Formation data cleansing and formation tools. Rodwick said the new software plugged the last remaining gap in the company’s DecisionScape suite, enabling Red Brick to begin offering a complete, end-to-end data warehouse solution; a fact that Rodwick thinks will further enhance the company’s fortunes. Despite its efforts, Red Brick’s future doesn’t look rosy. Second quarter net losses in July (CI No 3,454) were $6.1m, substantially higher than last year’s net losses of $1.5m while revenues declined 26% to $7.7m. To make matters worse, the company’s market space has steadily been invaded over the last two years by database giants like IBM Corp and Oracle Corp, all anxious for a share of the data warehousing pie. Over the same time period, Red Brick’s shares have declined from $54 to around $4. But Rodwick remains optimistic. He points to extensive meetings with industry analysts and partners, all of whom, he says, agree that Red Brick is going in the right direction. However, analysts surveyed by First Call aren’t expecting Red Brick to make a profit in the foreseeable future.
