SOURCE: ProactiveNet

March 19, 2007 08:55 ET

ProactiveNet Announces Record Fourth Quarter and Fiscal Year-End Results

Industry's Acceptance of ITIL and Desire to Improve IT Efficiency Help Drive Record Growth

SANTA CLARA, CA -- (MARKET WIRE) -- March 19, 2007 --ProactiveNet Inc., the time-to-value leader in Business Services Management (BSM), today announced record fourth quarter and fiscal year-end results. In fiscal 2006, the company achieved year-over-year revenue growth of 56%, compared with fiscal year 2005. The company also experienced its most successful sales quarter to date, with 2006 fourth quarter sales surpassing results from the year ago period by 52%.

In 2006, ProactiveNet continued to benefit from industry acceptance of ITIL and related IT service management best practices. Evidently, this trend will hold steady in 2007 according to a recent report from Forrester Research. In its February 2007 report, "2007 Enterprise IT Budget Outlook," Forrester analysts report that, "As in 2006, improving IT efficiency is the most important operational theme for IT shops in 2007. Not surprisingly, as IT shops improve efficiency, they will also attempt to improve their ability to measure business impact."

The adoption of an ITIL strategy and the implementation of a BSM solution can seem daunting to enterprise IT organizations, who often have fixed budgets and limited time for major technology deployments. However, this trepidation feeds right into the value of ProactiveNet's namesake BSM solution. The product's proven ability to deploy quickly, easily scale with customer requirements, expedite problem resolution and improve IT operations efficiency led to a record number of new accounts in 2006, including a Fortune 500 Global Energy company, a Fortune Global 100 Financial Services company, and one of the world's largest Internet travel companies.

Additionally in 2006, two more U.S. patents were granted to ProactiveNet, both of which protect the company's data correlation and analysis engine, the key to linking business performance metrics with the performance of the end-to-end IT infrastructure in real-time. Other highlights in 2006 include the successful launch of ProactiveNet 7.0, a major upgrade to the company's flagship product; and the bestowment of Computerworld Magazine's Best Practices in Infrastructure Management Award to ProactiveNet customer SHOP.COM. SHOP.COM, a large Internet retailer, won in the category of "Managing to Improve TCO/ROI" and credited ProactiveNet as being "an essential part of that strategy."

"As expected, BSM and ITIL are going mainstream," said Ajay Singh, president and CEO of ProactiveNet. "When it comes to linking the business with the performance of the enterprise IT infrastructure, only data correlation and analysis can provide the real-time visibility that IT organizations require -- and we own the patents. Given our current momentum, what's in our sales pipeline, and the research forecasts of the analyst community, 2007 is shaping up to be an exciting year."

About ProactiveNet

ProactiveNet, Inc. is the "Time-to-Value" leader in Business Services Management software solutions for Global 2000 and leading e-commerce companies. The company's end-to-end solutions deliver unique capabilities to customers with requirements to align IT services to business priorities, seamlessly link business process performance to IT service and infrastructure behaviors, and maximize IT's value to the business. Achieving value within weeks, ProactiveNet customers measurably improve the availability and performance of IT services, reduce SLA non-compliance, and shorten problem resolution time, while streamlining IT operations and reducing costs.

ProactiveNet customers include E*TRADE FINANCIAL, Hoover's Online, MoneyGram and McKesson Corporation. ProactiveNet delivers key capabilities to companies implementing ITIL best practices and has been offering end-to-end business and IT services management solutions since 1997. The company is headquartered in Santa Clara, California with international offices in India and the UK. For more information about ProactiveNet, visit www.proactivenet.com and download customer ROI studies, or call (877) 277-6686.

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