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In its audited preliminary results for the year ended 31 March 2010, Alterian (newssite) reports revenue increase, new licensees and partner network growth. And we look at what's coming in 2011.

FY 2010 Financial Highlights

Revenue is up 14% to £38.0m (2009: £33.4m) 
Gross margin of 89% achieved (2009: 87%) 
Adjusted operating profit is up 28% to £7.7m (2009: £6.0m) 
Profit before tax is up 84% to £6.7m (2009: £3.6m) 
Net cash increased 30% to £11.2m (2009: £8.6m)

Operational Year-End Highlights

In 2009, Alterian completed the acquisition of social media monitoring company Techrigy Inc, which is now the foundation of their Alterian SM2 product.

UK, Europe and Asia Pacific revenue grew 11%. The U.S. operating division delivered £15,9m in revenue -- almost 50% less than UK and International, but slightly up from 2009. UK and International’s contribution stayed at about the same level of £28m.

Alterian reports more than 330 new end users (2009: 210) across a wide range of vertical markets and geographies.

The sign-up of 65 new partners (2009: 25) – mostly marketing agencies attracted by Alterian’s new social media marketing offerings in SM2 – contributed to growth, bringing the total number of partners to approximately 220 worldwide. One of the most recent ones we told you about -- SocialEyez, a division of Media Watch Middle East – is taking Alterian’s social media monitoring products to the Arabic market.

Also in this period, the Web CMS/ WEM vendor launched new products, including web behavior analytics product WebJourney and reporting product Analytical Dashboard.

What’s Coming in 2011

We expect that Alterian will continue to focus on increasing revenues from outside the UK. Also, we should see the following materialize: 

  • New Engagement Management products to be released in H2 FY11 
  • SaaS offering is coming with the expansion of managed services and Alterian’s full product range to be available on a Software as a Service (SaaS) basis
  • Alterian’s SM2 social media monitoring product will continue to be the material focus, even though it contributed only modestly to the results in the year to 31 March 2010 due to the early stage of the acquisition of Techrigy
  • Investment in expanding Alterian’s distribution into territories such as Asia Pac, South America and the Middle East
  • Investment in the expansion of Alterian’s sales force

Overall, looks like Alterian had quite a good year. Our curiosity lies in whether Alterian will be able to win over the U.S. market -- especially in the light of dropping Morello and Immediacy Web CMS brands -- where there’s still plenty of possibilities on both the WCM and WEM fronts.