Varicent - Press Releases

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(Toronto) – Varicent™ Software Incorporated, the only provider of complete solutions for sales performance management (SPM), today announced 2006 was a breakout year for the company. Completing its third consecutive year of triple-digit revenue growth and profitability, the company is well positioned to capture even more mindshare and market share in the rapidly emerging market of sales performance management software.

"Organizations are embracing operational performance management processes and many are discovering the direct need for sales performance management in delivering better transparency, efficiency and increased profits," said Mark Smith, CEO and executive vice president of research, Ventana Research. "Varicent is delivering for the industry by presenting a holistic, finance-based approach to sales operations and performance needs while delivering on sales compensation requirements."

Business performance management is a combination of business processes, select measures (metric, key performance indicators) and systems that enable organizations to understand, act on and influence its business performance. Sales performance management, a subset of this, focuses on sales planning, modeling and dashboarding, quota and territory management, sales commission and incentive calculations, and sales analytics. Varicent's flagship product, Varicent Sales Performance Management (SPM), helps companies better manage, measure and understand the economic impact of their variable compensation programs.

"Variable compensation -- the cornerstone of sales performance management - is the single largest variable expense for most large enterprises," said Varicent CEO Dan Shimmerman. "With average overpayments ranging between three to five percent, variable-based payments can be a significant source of lost money for companies. Varicent's customers have reversed this trend by deploying Varicent SPM to bring more control and insight into pay-for-performance programs."

Specific highlights of Varicent's performance in 2006 include:

Signing a significant number of global enterprises in 2006, such as Starwood Hotels and Resorts Worldwide, Adaptec, KLA-Tencor, Savvis, Sonus Networks, SunGard, Chase Paymentech, Global Insight, and Waste Management;

Delivering high return on investment (ROI) for deployed customers including Tweeter Home Entertainment Group, Omneon Video Networks, Greater Bay Bank, Kyphon and Heritage Health Systems;

Increasing deployed SPM applications to more than 20 countries, including payees in the U.S., Canada, the U.K., Australia, Spain, Germany, Norway, Singapore, Tokyo, Hong Kong, Japan, Korea and other countries;

Adding implementation partners Iconixx, based in Houston, Texas, and Northwest EIS-OLAP, headquartered in Vancouver, Washington; and

Expanding the sales and pre-sales organization to service existing and new customers.

Additionally, in 2006 Varicent recruited a key executive for the company's management team. Rod Radojevic, previously with Extensity and Comshare, was named vice president of product management. Radojevic is leading product management and marketing initiatives, and will be a frequent speaker at industry tradeshows and conferences.

Continued Shimmerman, "Industry analysts project solid growth for the entire sales performance management market. Coming off of the successes of 2006, we are poised for an even more successful year of growth and expansion in 2007. In fact, Varicent started the year by being named the 'Best New Vendor' in business performance management in BPM Partners' annual Beyond the Hype? Web cast. Our plans for 2007 include filling out the executive management team, further expansion of the sales force and increased focus on our marketing and development efforts."

About Varicent

Varicent Software Incorporated delivers the only complete sales performance management solution addressing the needs of the entire corporation. High performing companies relying on Varicent for better visibility and control of variable compensation programs include KLA-Tencor (NASDAQ: KLAC), Starwood Hotels and Resorts (NYSE: HOT), Waste Management (NYSE: WMI), Rogers (TSX: RCI), About.com (a New York Times company), and Pacific Blue Cross. For more information on Varicent, please visit http://www.varicent.com. .