Midway Between Rags and Riches, Q1 Continues Upward Trend

Midway Between Rags and Riches, Q1 Continues Upward Trend
May 12, 2003

For the third consecutive quarter, the Culpepper 100+ posted encouraging results.

While certainly not back to bubble-mania, public software companies scored improvements on many key benchmarks in Q1 2003. These include:

Days Sales Outstanding: Down to 66, an all-time low.
Restructuring Charges: At lowest level since Q4 2000.
Gross Profit Margins: Up by 3 points since Q1 2002.
Pro-forma Cash Income: 2nd consecutive quarter in black.
Net Income: Still red at -2.6%, but the best since Q3 1999.
Revenue per Headcount: Up to Q1 2001 levels: $223K.
Sequential Quarterly Revenue: Up 0.7% over Q4, which is a feat rarely achieved, since Q4 is almost always a peak.
Quarter-over-Quarter Revenue: Up for 2nd consecutive quarter, although only at 1.1%.

Also in the
May eBulletin

- Sales Impact Drives Sales Pay

Last Month's Survey Results
- Group Life and AD&D Insurance

Other Recent Articles
- Cleaning Up the Books: DSOs Down, Hope Up
(4/03)

- Back from the Rabbit Hole: Profits Beat Growth
(3/03)

- Q4 Revenue and Profits Looks Better
(2/03)

For the most part, companies have purged over-priced acquisitions from their balance sheets and reined-in aggressive revenue recognition practices.

While Revenue per Headcount is still too low, the worst of the layoffs should be behind us. We expect that further revenue growth will soon drive this ratio towards a healthy $275,000.

It may not be time to pop the champagne corks, but let's hope that we don't have to wait until New Year's eve.

- Warren L. Culpepper

Data drawn from the 101 companies (out of 123 total) in the Culpepper 100+ that have reported Q1 2003 results as of May 5, 2003.

Midway Between Rags and Riches, Q1 Continues Upward Trend May 12, 2003

Midway Between Rags and Riches, Q1 Continues Upward Trend
May 12, 2003