Friday, 12 December 2008

smartFOCUS hit by ‘double-whammy’

(By Anthony Miller) Much like recruitment/HR software player, Bond International (see New Bond model strains margins), ‘little British battler’ CRM firm, smartFOCUS, hit the double-woes of moving to a SaaS model during a market downturn. In its trading update (see here), CEO Chris Underhill warned that contract and project delays, coupled with the transition from up-front licence fees to monthly 'rental', will push the year into a £1.3m loss (FY07: £1.5m profit) on £10.3m revenues (FY07: £11.5m). smartFOCUS also reported a loss at half-time. CRM is a frightfully tough place to be, especially when the ‘giant’ of the CRM SaaS sector,, with a $1bn p.a. revenue run rate, is offering a service for as little as £5 per user per month and making just 6% margin. We wish the smartFOCUS team well.

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