Investment analysis firm Brainpower is reporting a slight narrowing in fourth quarter EBITDA losses of EUR1.8 million, against a EUR1.8 million loss in the preceding quarter. The company, which recently closed down a number of its overseas sales offices, says it is on track to break even in Q4 2002.
Rocco Pellegrinelli, chairman and chief executive officer of Brainpower, comments: "Over the course of a very tough year with challenging economic conditions, Brainpower has been able to grow both in terms of revenues (+116%) and number of contracts (+50%)."
Bill Holwell, chief financial officer, says the company ended the year with a strong cash and cash equivalents position of Euro13.6 million, and sufficient liquidity to achieve breakeven by fourth quarter 2002.
Brainpower reported a net loss of Eur2 million for the Q4 2001, excluding restructuring charges of Eur0.4 million, against a net loss of Eur2.3 million, excluding restructuring charges of Euro0.9 million, in the third quarter. The charges relate to the closure of non-strategic sales office in overseas locations and a slight reduction in headcount in a continuation of a cost-cutting programme announced in September 2001. The company says it foresees no further cutbacks or charges for the coming year.
In a seperate announcement, Brainpower has entered a marketing alliance with data management outfit Fame. Under the agreement, the companies will jointly pitch Brainpower's decision support desktop with Fame's OpenFame data management software, databases and data outsourcing.
Dale Richards, president of the financial division at Fame, states: "Brainpower's strength in analytic front-end investment decision systems complement our information integration and managed data services. This combined solution meets the needs of customers who have approached us looking for alternatives to high-cost systems supplied by the likes of Factset and others."
The agreement follows a similar tie-up between Brainpower and US-based account aggregation software vendor Yodlee.