Prophecy Signs Partnership with Computer Associates
Released 6 June 2000
Prophecy International has signed an agreement with Computer Associates
in Australia to become a formal ISC partner. The two companies will
run joint marketing activities to enhance their respective product
sales and to gain new Vertical Application Partners for the Prophecy
Framework product. This new partnership recognizes the unique nature
of the Prophecy software offering, its market potential, and the
long term relationship between Prophecy and Computer Associates.
It is the intention of Prophecy to extend this relationship to each
of its major overseas territories.
Prophecy International has, over the last few months, invested
heavily in the expansion of its sales team in both the North American
and European territories in particular, as well as locally in Australia
and Asia. This expansion includes the creation of a dedicated salesforce
aimed at finding new and strategic partner opportunities for the
companys Framework Rapid Application Assembly software, as well
as the building of a direct sales team to create customer opportunities.
Ed Reynolds says, Market feedback both in Australia and overseas
reinforces the fact that Prophecy has developed world beating intellectual
property. The Prophecy partner salesforce is targetting a number
of the worlds leading information technology companies, with a view
to concluding partnership deals that will result in an exponential
increase in licence sales. Progress to date has been encouraging
and Prophecy will continue to expand its sales activity in this
high end sector even though ultimate rewards can take some time
Our core business growth is dependent on the middle tier market
of Vertical Application Partners. Prophecy stands to earn licence
revenue streams from frontend software developed by these partners
using our Framework, revenue streams from sales of the ProphecyOpen
software suite integrated as the backend accounting solution and
revenue from the licencing of Framework direct to customers who
wish to add to their standard package solution as supplied by our
Vertical Application Partners.
With the expanded sales teams in the USA and UK now out of initial
familiaization and training programs, a healthy pipeline of new
prospective clients has been established. Current forecasts of year
end revenues are in line with expectations.
However, in line with experiences of other software vendors such
as SAP and Peoplesoft, the company has experienced a slow down in
the closing of sales as customers focus on Y2K issues. The nature
of the company's business is that of a smaller number of large value
sales, and the company expects that half year revenue as a result
of delayed sales will be below expectations.
The decision making process is expected to accelerate after the
new year as businesses assess the impact of Y2K and free up expenditure
budgets that are being held in reserve.