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DAILY NEWS AND INFORMATION FOR THE GLOBAL GRID COMMUNITY / AUGUST 4, 2003; VOL. 2 NO. 31

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Breaking News - Security:

OpenNetwork Gains Market Momentum With Record Performance

OpenNetwork Technologies, a leading provider of non-intrusive identity management solutions for both .Net and Java-based platforms, has announced record results for the first half of 2003. The privately held company increased revenue by more than 60 per cent from Q4 2002 and increased software sales more than 100 per cent. Today, 70 per cent of the company's revenue is generated from software, with the remaining 30 per cent from consulting services. At the current run rate, OpenNetwork will be cash flow breakeven in Q3.

With the launch of its next generation product, the Universal Identity Platform 5.0 (IdP), OpenNetwork achieved significant milestones by shipping the industry's only end-to-end, Web services enabled, .NET identity management solution, and becoming a strategic component for Microsoft's identity management offerings. Working together, Microsoft and OpenNetwork are enabling multi-billion dollar, global organisations to secure resources and manage users with greater reliability and manageability at lower cost.

"OpenNetwork has proven that even in a turbulent economic environment, they can grow their business by delivering the solutions that customers require," said Manny Fernandez, chairman emeritus, Gartner and managing director, SI Ventures. "The company has an impressive business opportunity with the strong partnerships to flourish in the enterprise software market, and the leadership in place to guide the company to future success."

For the first half of 2003, OpenNetwork significantly expanded the breadth of its customer base to include Fortune 500 and global customers across six countries from diverse industries including: banking, distribution, financial services, food and beverage, government, manufacturing, publishing, pharmaceuticals and more. Additionally, the company continued to lead the healthcare insurance industry with more than 85 per cent of the BlueCross and BlueShield business.

Some of the company's customers include: Pioneer Hi-Bred International, ARAMARK, Invesco, Anthem, Avnet, Duke Energy, Pacific Life, Capital BlueCross, VirtualBank, Ameriquest, and many more.

As further testament to its successful business, OpenNetwork was named one of the most innovative companies in the world by the Always-On Network. Additionally, the company was named to the Deloitte & Touche Technology Fast 500 and the Deloitte & Touche Technology Fast 50.

"OpenNetwork is one of the industry's most innovative companies with a clear vision and focused business," said John Abraham, Battery Ventures. They demonstrate leadership through their technology, tremendous execution and proven revenue momentum."

OpenNetwork Delivers Technology that Customers Implement Successfully

OpenNetwork is the only identity management company with 98 per cent of their customers in production or on-track for production. Additionally, the customer support and maintenance renewal rates are an unprecedented 99 per cent.

"We are extremely pleased with the growth of our business," said Kurt Long, OpenNetwork CEO. "We have made significant strides increasing and diversifying our customer base, growing our software revenues, strengthening existing partnerships and building new ones, and shipping the world's only .NET identity management solution."

Business Highlights for the First Half of 2003

  • Increased software sales by more than 100 per cent. Grew revenue more than 60 per cent with 70 per cent generated from software, support and maintenance, and 30 per cent from services.
  • Appointed industry veteran Charles Hixson to lead global sales organisation.
  • Launched Universal Identity Platform, the industry's only .NET solution for end-to-end identity management.
  • Further strengthened Microsoft relationship to become one of the only recommended identity management vendors to ship with their solution.
  • Significantly grew and diversified global customer base in banking, distribution, financial services, food and beverage, government, manufacturing, publishing, and pharmaceuticals.
  • Achieved record services renewal rates of 99 per cent. Implemented 98 per cent of customers with the remaining on schedule for production.
  • Won the Always-on Top 100 Award.
  • Won the Deloitte & Touche Fast 500 Award and the Fast 50 Award.
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