Supply chain management software maker E2open Inc (EOPN.O) expects its revenue to hit $100 million for the first time next fiscal year, after replacing its dependence on BlackBerry Ltd (BB.TO) and PC makers with a host of new customers.
Chief Executive Mark Woodward said he expected E2open, which went public a year ago, to boost its sales in the 12 months to February 2015 after adding up to 20 new enterprise customers in the current fiscal year.
“We do $80 million (in revenue) this year and we grow 30 percent next year. That should get us there,” Woodward said in an interview, referring to the $100-million revenue target.
E2open, which makes cloud-based software designed to assist companies in managing their supply chains, has more than doubled its annual revenue in the five years since Woodward took charge. Revenue in the fiscal year to February 28, 2013, was $75 million.
The company’s shares have risen about 35 percent since they began trading on the Nasdaq on July 26 last year.
Three of the six analysts covering E2open have a “strong buy” rating on the stock. The other three rate it “buy”, according to Thomson Reuters data. The company has a market capitalization of $460 million.
With a customer base that includes Coca-Cola Co (KO.N), Unilever Plc (ULVR.L), IBM (IBM.N) and Cisco Systems Inc (CSCO.O), E2open has been diversifying to cut its dependence on any one large customer.
Last year, that customer was Canadian smartphone maker BlackBerry (BBRY.O).
Woodward said he expected BlackBerry’s contribution to E2open’s revenue to fall to less than 3 percent in the current fiscal year from nearly 15 percent last year.
BlackBerry, which pioneered on-the-go email with its handsets and messaging systems, has slipped into tough times as it struggles to keep pace with nimbler rivals.
Woodward said BlackBerry’s quarterly shipments of about 7 million units were between a quarter and a third of the volume contracted when it became a customer of E2open four years ago.
“Their usage of our systems, just because they are selling less handsets, has come down dramatically,” said Woodward.
E2open has, on average, signed up 17 enterprise customers in each of the last two years. In total, it has 76 enterprise customers – those which buy E2open’s software as well as pay for access to its network of suppliers and trading partners.
Computer maker Dell Inc (DELL) brought in 22.5 percent of E2open’s revenue in fiscal 2011. Now, it accounts for less than 5 percent – even though its contribution in dollar terms has risen, Woodward said.
“The original deal that we signed with Dell was for $3.2 million for three years,” he said. “The last bill we signed with Dell was for $3.2 million per year.”
British mobile telephone company Vodafone Group Plc (VOD.L) (VOD.O) is the largest customer for Foster City, California-based E2open, having contributed 12.1 percent of the company’s revenue last fiscal year.
Another customer, Seagate Technology LLC (STX.O), held a 9 percent stake in E2open as of December last year.