Note: To support questions from enterprise buyers and private investors that are looking at Telecom Expense Management and the greater Communications Lifecycle Management world, Blue Hill is starting a monthly review of the key announcements made in this space for companies in this space including, but not limited to: Anatole, Asentinel, Avotus, Calero, Cass Information Systems (NASDAQ: CASS), Cimpl (formerly Etelesolv), Comview, EZwim, GSGTelco, IBM Global Services (NYSE: IBM), MDSL, mindWireless, MOBI, Mobichord, Mobile Solutions Services, MobilSense, MTS (NASDAQ: MTSL), NetPlus, Network Control, Tangoe (NASDAQ: TNGO), Telesoft, Valicom, VCom, Visage, Vodafone Global Enterprise (NASDAQ: VOD)
Communications Lifecycle Management news items that have gotten Blue Hill’s attention in November 2016 include announcements from Cass Information Systems, MOBI, MobiChord, MTS, and TEMIA.
Cass Information Systems
On November 21, Cass Information Systems announced its stock price reached a new 52-week high, hitting a peak of $72.27 before closing at $72.21 per share. Shares opened at $70.35, increasing 2.64% to a market cap of $807.03 million.
Cass does not publicly disclose revenues for its TEM business, but the company reported a YOY increase of 4.4% in its fiscal Q3 2016 Facility Expense Dollar Volume, which includes its Energy, Waste, and Telecom businesses, compared to the same period in 2015. Blue Hill profiled Cass in our recent Global Telecom Expense Management Vendor Landscape as one of the key vendors equipped to manage TEM on a global scale.
On November 11, MOBI announced it was recently awarded EU-U.S. Privacy Shield compliance certification. The Privacy Shield is aimed at facilitating multinational business by addressing EU data protection requirements for transferring personal data from the EU to the U.S. MOBI is now one of 734 U.S. companies to receive this certification.
Blue Hill advises that as U.S.-based TEM providers expand into international locations, vendors must be aware of differing regional data compliance standards. For MOBI, achieving Privacy Shield compliance certification is a competitive advantage for the EU markets, especially as enterprise mobile data becomes increasingly personal and sensitive with the advent of Bring-Your-Own-Device (BYOD) and Corporate-Owned-Personally-Equipped (COPE) policies.
On November 7, MobiChord announced it has secured seed funding from ServiceNow Ventures. ServiceNow Ventures’ portfolio also includes MuleSoft, an integration platform for SOA, SaaS, and APIs, as well as Nuvolo, a cloud-based enterprise asset management platform.
Blue Hill has previously written extensively about the private equity and M&A activity within the TEM space, and has noted that the TEM industry is ripe for acquisition. MobiChord continues to emphasize its partnership and integration with ServiceNow as a key differentiator for the platform. Blue Hill notes that by investing in MobiChord, ServiceNow is continuing to invest in and define its ecosystem, and is prioritizing MobiChord, alongside integration and management platforms, MuleSoft and Nuvolo, as a strategic partner in that ecosystem to support mobility.
On November 14, MTS announced fiscal year 2016 third quarter financial results. The company reported revenues for the quarter of $3.3 million, down from $3.8 million in the third quarter of 2015, and $3.4 million in the second quarter of 2016. On a GAAP basis, the company reported a net loss for the quarter of ($494,000). Of the results, Chief Executive of MTS, Orey Gilliam, commented that the company’s TEM and billing division maintained dependable performance levels and a steady quarterly revenue.
MTS is currently undergoing a strategy of migrating clients to the cloud with multi-year service contracts. Blue Hill notes that while this migration is underway, MTS may see lower quarterly revenues as the company invests more in service relationships and technology solutions. Blue Hill notes that cloud continues to be competitive advantage for TEM providers compared to on-premise solutions, and thus MTS is investing for the long term by migrating clients to the cloud.
On November 16, TEMIA, the Technology Expense Management Industry Association, celebrated its ten-year anniversary. Originally the Telecom Expense Management Industry Association, TEMIA changed its name to better reflect the changing TEM industry brought on by a focus on Communications Lifecycle Management and enterprise mobility. The association now includes over 40 member companies with a combined spend under management of more than $61 billion per year.
As a member of TEMIA, Blue Hill is excited to see that the association has continued to grow and change for the past ten years as the market has done the same. The continued success of TEMIA speaks to the ongoing prospects within the TEM industry both for individual players and for partnership opportunities.