ATG aims for US$19.6m sales in Asia

By Irene Tham, CNET.com
Friday, March 23, 2001 08:14 AM
SINGAPORE--US-based Art Technology Group Inc's initial six-month foray into Asia Pacific has met revenues of US$3.3 million. This year, the company is ramping up its regional presence, and expects sales to hit US$19.6 million.

The company's software, ATG Dynamo, allows e-businesses to manage their customer relationships online.

The Cambridge, Massachusetts-based company started selling Dynamo in Asia Pacific last June. As of December, it had won 21 customers including China.com, Sony, Daewoo, LG Electronics, Toyota and HSBC Bank, said ATG Asia Pacific director Gary Morley.

Asia Pacific also contributed 2 percent (or US$3.3 million) to ATG's total sales for the year, Morley said in an interview.

On Thursday, the company launched its Southeast Asia headquarters in Singapore, to add to its current offices in Hong Kong, Japan, Korea and Australia.

These five offices boast a combined staff strength of 55, and the figure is expected to grow to 200 by year end.

"We are making a substantial investment in Asia Pacific," said Morley, declining to reveal the exact amount.

"We see huge opportunities here as a lot of companies are going online, and they need mission critical applications to manage their customers," he explained.

Commenting on competition, Morley said: "The market is huge, and we are barely scratching the surface."

Among identified competitors are BEA, Vignette, IBM and Broadvision, but he claimed that "they do not have the depth and width of ATG's Dynamo."

Morley also clarified that ATG does not compete with SAP and Oracle. Instead, Dynamo "complements" their Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) products.

For the year ended December 2000, ATG's worldwide revenue grew five-fold to US$163.3 million, from US$32.1 million the year before. It made a net income of US$14.5 million compared with a loss of US$17.5 million in 1999.

It has 670 customers worldwide, including American Airlines Cargo, CMP Media Inc, Daily News LP, Ford Motor Co, Lloyds of London, Meredith Corp, Oxygen Media LLC, Pfizer, Reader's Digest, Reuters America, Trans World Entertainment Corp, Philips International, Procter & Gamble, Eastman Kodak Co and Time Inc.

ATG's partners include PricewaterhouseCoopers, Accenture, Sun Microsystems, Hewlett-Packard, Modem Media, Fort Point Partners, Icon Media Lab and Lattitude.

ATG has a headcount of over 1,100 globally. Its shares were last traded on the Nasdaq at US$17.06, up US$0.94.

Note: The story has been changed since first published. The customer wins as of last December was 21 and not 31 as earlier said. We apologize for the error.


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