Procuri Marks 2005 as a Record Year for Growth

Customer wins, acquisitions and funding combine to fuel market expansion for on-demand supply management solution provider

Customer wins, acquisitions and funding combine to fuel market expansion for on-demand supply management solution provider

Atlanta — March 31, 2006 — On-demand supply management specialist Procuri this week touted its 2005 results, pointing to significant year-over-year increases in revenue fueled, in part, by the addition of more than four dozen new clients and what it sees as a growing awareness of the value of supply relationship strategies.

Atlanta-based Procuri said it saw a 71 percent increase in total revenue in 2005 over 2004 and a 63 percent compound annual growth rate for the last two years. In addition, the company signed 149 contracts in 2005, representing 51 new customers, which Procuri attributed to the growing awareness that supply relationship strategies are critical to corporate performance.

The solution provider said that its expanding customer base represented companies of all sizes and a range of vertical industries. New customers signed in the fourth quarter included TRW Automotive U.S., Plantronics and UPM-Kymmene. "Our customers are leading their industries with supply management best-practices and have achieved the results — in cost-savings and performance improvements — to validate them," said Mark Morel, president and CEO of Procuri.

Acquisition, Funding, User Conference

Other 2005 highlights included the acquisition, in March, of Contract Management Solutions, Inc. (CMSI), which allowed Procuri to expand and update its supply and contract management solution suite. Procuri said that its offerings now address every major aspect of the supply management process: supplier selection, vendor performance, contract management, spend analysis and compliance.

Also in 2005, Procuri secured $12.5 million in additional equity financing in a Series B up-round led by current investor Insight Venture Partners and new investor Advent International.

Finally, more than 250 sourcing and contracting professionals attended Procuri Empower 2005, the company's user conference, in September. The conference featured presentations by companies and experts including Aberdeen Group, AMR Research, Bank of America, General Electric, National City Corporation, PepsiCo, Roll International, Sun Microsystems, Texas Instruments and Toyota. Sun Microsystems, SAS and Austin-Tetra were sponsors.

Looking ahead, Morel said that the addition of leading industry analyst Tim Minahan to Procuri's management earlier this month as senior vice president of marketing would get the solution provider off to a good start in 2006. "As he spearheads our global marketing initiatives and alliances, we will continue to capitalize on the fast-growing market for solutions that deliver best-in-class supply management processes," Morel concluded.


Additional Articles of Interest

— What the year ahead holds for the purchasing card — and why you may want to give your p-card program another look. Read more in "The Net Best Thing: P-Card Update," in the February/March 2006 issue of Supply & Demand Chain Executive.

— Businesses today continue to look for ways to reduce their logistics costs, but in order to identify further costs savings, companies need to tap into new information. The answer? Benchmarking. Read more in "Freight Cost Benchmarking: The Final Procurement Level," in the February/March 2006 issue of Supply & Demand Chain Executive.


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