Lincroft, NJ July 17, 2001 There is no shortage of revenue and earnings surprises in the B2B sector, the vast majority of which have been negative.
However, PurchasingNet Inc. of Red Bank, New Jersey is one company that exceeded expectations in the second quarter. The company was cash-flow positive and profitable for the quarter and year-to-date.
"The newer B2B software companies are having their problems, " reports Tim McEneny, chairman and CEO of PurchasingNet. "They had unsustainable business methods and are now paying the price. Many of them had difficulty delivering real value to their customers. Since introducing our first Web-based procurement software over five years ago, we have done a great job building a happy installed base. Companies actually using our software are reporting a 12- to 18-month [return on investment]."
McEneny went on to say, "Clearly the era of eProcurement hype has ended. We now have a significant competitive advantage because we have real customers, using real software, solving real business problems. We let our customers do the talking for us. We have built a great, cost-effective solution for mid to large sized companies. We have leveraged our experience over the past 18 years with over 1,400 customers to build a very flexible, easy-to-use product."
PurchasingNet has been profitable 14 of the last 15 years, and is projecting a profit in 2001.