Ilog SA, the Paris, France software component supplier, closed its fourth quarter on June 30 with muted income from operations of $211,000 after last year’s $1.8m from flat revenues up 2.4% at $16.8m. The full year operating loss was $3.2m after $2.5m in one-time charges, compared to last year’s $27.8m loss after one-time charge of $31m, from revenue up 15.2% at $63.7m.
CEO Pierre Haren said the return to profit in the fourth quarter reflected cost cutting measures applied in February, and while he warned that a seasonal slow-down in September is expected, the negative impact of Y2K is expected to recede in coming quarters. Haren added that Ilog’s aggressive pursuit of independent software vendors, as part of a deliberate policy to optimize growth and profitability, has seen early success. The company signed 15 new contracts with ISVs in the last quarter, and while ISV income now accounts for 40% of sales, this figure is expected to reach 65% over time, he said.
