First Coffee for July 21, 2005

David Sims : First Coffee
David Sims
| CRM, ERP, Contact Center, Turkish Coffee and Astroichthiology:

First Coffee for July 21, 2005

By David Sims
[email protected]

The news as of the first coffee this morning, and the music is Al Stewart’s A Beach Full of Shells, his new album and first in a few years:

It’s quarterly reporting season, and CRM vendor Amdocs Limited weighs in with a good one.

The St. Louis-based vendor, which is hitting the Chinese market hard, reported that for the third quarter ended June 30, 2005, revenue was $507.4 million, representing sequential growth of 3.9 percent and an increase of 12.7 percent from last year’s third quarter.

Excluding acquisition-related costs net of related tax effects of $1.7 million, net income was $78.8 million, or $0.37 per diluted share, an increase of $15.3 million, or 24.1 percent of Q3 2004.

The company’s net income was $77.1 million, or $0.36 per diluted share, over net income of $59.9 million in Q3 2004.

SAP didn’t do too badly either in their Q2 2005, slightly exceeding estimates. They’re reporting software revenues of 576 million euros… sigh, break out the calculator… okay, at 1.21 euros to the dollar, that’s… $701 million, up from $605 million last second quarter. That’s a 16 percent increase in any currency.

American license sales were up strongly, but the Walldorf, Germany-based giant is a little concerned over declining German license revenue.

Total revenues for second quarter of 2005 were euro 2.02 billion, or $2.46 billion, over 2004’s $2.19 billion, a 13 percent increase.

Software revenues in the U.S. – or, as SAP puts it, “money that didn’t go into Larry Ellison’s pocket” – increased 24 percent to euro 174 million, or $211 million for the second quarter of 2005, a tidy enough sum.

Software revenues in the EMEA region grew 9 percent to $351  million for the second quarter of 2005, an eight percent increase from 2004.

“Licenses looked good with 16 percent growth. Within this, Germany was the one question mark – licenses here were down 13 percent year over year,” analysts for Morgan Stanley told MarketWatch.

SAP blamed the poor German performance to “uncertainty surrounding the upcoming national elections and sales-force reorganizations,” and “expects the region to rebound next quarter,” MarketWatch says.

Meanwhile, things aren’t so hot over at Technology Solutions Company. You know it wasn’t the Quarter of Dreams when the report begins by saying that TSC “today reported that it has taken actions to improve results.”

The company announced headcount reductions and office closings, which they hope will result in “annualized savings of approximately $5.2 million and a charge to earnings of approximately $1.7 million in the second quarter,” results of which will be announced August 11. It promises to be a rather dreary day at TSC – among other things, the company will record a $0.7 million charge for impairment of goodwill and intangibles.

The company anticipates revenues for the second quarter ending June 30, 2005 to be in the range of $9.0 million to $9.2 million and its earnings results, which includes a $2.7 million gain on the settlement of a contractual dispute as disclosed in the Form 8-K dated May 13, 2005, to be a loss of ($0.06) per share.

The company previously had expected revenue of between $9.5 to $10.5 million and a loss between ($0.07) to ($0.10) per share.

Best Practices LLC is announcing a new report, “Managing Contact Center Reps for Maximum Productivity.” According to company officials, the report aims to help contact center managers finding the balance between challenging their representatives to achieve maximum efficiency “without pushing so hard that the contact center suffers from low morale and high turnover.”

This, the report finds, requires “knowing what expectations are reasonable, developing representatives to a level where they can achieve these expectations, and finally rewarding them for successfully attaining goals.”

The report presents research detailing “every step in the process of successfully managing contact center representatives,” company officials say. It has the specific performance metrics of 13 companies in the areas of employee productivity, turnover, company costs, and more, and “explains the training and development practices that leading contact centers are using to develop their reps to the point where they can handle twice as many calls as their competitor’s reps.”

One best-in-class hiring technique: Conduct a 4-stage interview process. Begin with an interview over the phone, follow that with basic skills testing, a role-playing exercise, and an interview where candidates visit the contact center floor where they would be working. Best Practices found this process “set realistic candidate expectations for the job, so that turnover due to poor job satisfaction was minimized.”

IP vendor ShoreGroup, Inc. and Prominence Networks, a vendor of real-time IP voice and video applications are announcing a partnership where ShoreGroup will OEM Prominence Networks MediaIP service delivery products.

The partnership combines ShoreGroup’s CaseSentry Systems Management product with Prominence Networks MediaIP service delivery products, said Sid Nag, Founder, President and CEO of Prominence Networks.

Nag said the new products will “specifically target the demanding availability, quality and performance requirements of today’s advanced IP Communication environments.”

A “startling study” conducted by Qpass of 100 U.S. and European digital content Websites revealed that “more than one third of the sites are unsecured, allowing users to ‘shoplift’ music tracks and download them as free ringtones,” the press release warned.

Oh my. First CoffeeSM supposes if he tried really hard he could give a damn.

“The extent of the problem in US may have already cost the mobile and music industries an estimated $40 million U.S. since the beginning of 2004, and a further $123 million U.S. by 2007,” according to Qpass.

$40 million. In other words, what Geffen grossed off two Hole CDs back in the ‘90s. We’re not talking the death of an industry here, folks.

Evidently when users preview music before they purchase it – “an important part of the customer purchasing experience,” according to the press release – they discovered that two-thirds of web sites tested offered preview music files between 15 and 30 seconds, “the perfect length to convert into a ringtone.”

Qpass tested 42 mobile carrier portals and 58 online entertainment and music stores offering full track music downloads. “Out of the sites tested,” they report, “40 percent of carrier sites and 31 percent of other portals such as online music stores and entertainment sites were unsecured.”

“This is the mobile and cyber-equivalent of test-driving a car and then not having to give it back,” said Steve Shivers, Senior Vice President, Corporate Strategy and Development at Qpass, trying desperately to create the perception of a problem a company might hire Qpass to solve. Snitching a thirty-second ringtone’s like stealing a car... one wonders how Shivers would react to a real problem.

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