E-procurement providers see revenues rise

4 November 2011

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6 November 2011 | Adam Leach

E-procurement suppliers SciQuest and ePlus have reported significant increases in revenues in their latest financial reports.

SciQuest, which provides a range of spend management solutions to organisations in the scientific research and healthcare sectors, saw revenues increase by 28 per cent in the third quarter. The increase in sales, from $10.8 million (£6.8 million) in 2010 to $13.8 million (£8.6 million) in 2011, was largely the result of continuing demand from higher education institutions and a growth in activity in the healthcare sector.

Stephen Wiehe, president and CEO of SciQuest, said: “Overall activity levels continue to be robust and we are seeing strong demand in the higher education market. The healthcare market is showing renewed interest and our e-procurement solution.”

Wiehe said the scope of future opportunities had “never been larger” and added that he was optimistic of “delivering an excellent 2011 performance”.

Supplier ePlus, which operates in the retail, manufacturing and banking sectors, also experienced a rise in revenues. The company’s results for the second quarter revealed a 12.8 per cent rise, up from $233 million (£145.9 million) during the same period last year to $251 million (£157.1 million). Despite the increase, the company’s net earnings dropped by 14.7 per cent, which it attributed to increasing investment in staffing, acquisitions and reducing margins.

Phillip Norton, chairman, president and CEO, said: “While strategic investments in personnel, building out our geographic footprint broadening our solution set, and amortisation of acquisition costs continue to impact earnings, we believe these investments are essential to our long-term growth and competitiveness.”

Last month, Ariba reported a rise of $123 million (£77 million) while Hubwoo experienced a drop of 4 per cent compared with 2010 performance. 

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