Word on the street is that Coremetrics has made a bunch or people redundant. Redundancies include sales, sales management and senior management. The reasons given relate to the Board’s desire to stop the company burning the cash (it raised $60m last year) and achieve run rate profitability.
As a web analytics software provider that relies heavily on the retail sector this is perhaps no big surprise. They have been trying to break in to other sectors but success has been limited. Enterprise software sales is a long game and the recession could not have come at a worse time for them I would think. Combine that with Omniture’s move in to the retail space and they could be facing more tough times ahead.
Talking recently to colleagues in the US they don’t seem to have the impact from the recession that the UK has but they are waiting and watching. This is certainly reflected in Coremetrics press release yesterday that the market is unpredictable. They had huge growth in Europe last year and a couple of non-retail wins including BBC Worldwide and Alliance & Leicester. Not sure it will be enough. I feel some M&A activity is ahead!
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