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e-Business Profitability Lesson: Amid Dismal B2B Stock Performance, Content Management Companies Thrive

 



(EMAILWIRE.COM, January 19, 2001 ) The Delphi Group (www.delphigroup.com) launched the B2B50 Index in July 1999 to follow the profit/loss of a hypothetical portfolio of up to 50 B2B companies. The B2B50 Index cruised into 2000 riding a 2,054-point gain over the latter half of 1999. The Index reached a zenith of 2,940 in mid-March, and then tumbled to -924 as the year 2000 concluded. Over a third of the companies in the Delphi B2B50 lost at least 90% of their value; over half lost at least 80%. A Solid e-Business Model Fuels Five Winners A Solid e-Business Model Fuels Five Winners In the midst of this overall disastrous performance in the B2B50 Index, only five B2B50 companies managed to generated positive returns on their stock prices over the past 12 months. "This group of exceptions to the rule includes Documentum, Informatica, i2Technologies, Interwoven and FileNet," noted Hadley Reynolds, director of research. Each of these companies provide enterprise software. None is less than five years old or less than $85M in revenue. "Most significantly," says Reynolds, "each company has a demonstrable business model which underlies an ability to generate profitability in an e-business environment." Two of the five companies (Informatica and i2) are active in managing structured enterprise data and process information. Three (Documentum, Interwoven, and FileNET) address the issues of managing unstructured information. "The unstructured information software providers distinguished themselves among B2B stocks," said Reynolds. "These companies provide technologies that enable e-businesses to create, manage, and deliver rich content to their customers and partners across Internet-based value chains." FileNET and Documentum, in particular, posted impressive returns of 50% and 22% respectively late in the year 2000. This contrasts dramatically with NASDAQ's 30% loss in that same period. Content Management Momentum "B2B strategies need to marry complex value chain interactions with managed online documents," explains Reynolds. "The ability of these companies to manage constantly changing collections of rich-media content provides the foundation for new initiatives in collaborative commerce. During 2001, Delphi Group expects to see content management companies continue to outperform the index," Reynolds said. About Delphi Group Delphi Group (www.delphigroup.com) provides strategic advisory services for e-business. Delphi Group objective thought leadership has assisted more than 20,000 professionals in the Global 2000. Delphi Group has its headquarters at Ten Post Office Square, Boston, MA 02109. International offices in Australia, Canada, Japan and Venezuela are focal points for global activities. Note to editors: The chart, "Content Management Group Performance vs. the Indexes," accompanies this press release. It can be downloaded from http://www.delphigroup.com/pressreleases-------------------Produced for Delphi Group Contacts: Delphi Group 617-247-1511 Mary Ann Kozlowski mak@delphigroup.com David Park dsp@delphigroup.com Hadley Reynolds hr@delphigroup.com Thomas Koulopoulos tk@delphigroup.com -------------------

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