Nistevo Reaches Financial Milestone, Becomes Cash-Flow Positive
MINNEAPOLIS--April 15, 2003--Nistevo Corp., the leading Collaborative Logistics Network(SM) for transportation management, today announced that the company has become cash-flow positive by securing multi-year, annual subscriptions from more than 20 direct and 150 channel customers, as well as effectively controlling costs.
"The winners in today's software market are those that are self-sustaining, have a loyal customer base, and demonstrate ethical and solid business models," said Kevin Lynch, president and chief executive officer of Nistevo. "Nistevo is fortunate to have a solid customer base, including organizations such as The Dial Corporation, International Paper, General Mills, Georgia-Pacific and Land O'Lakes, whose annual subscriptions deliver ongoing revenue to our company. And we continue to add new members to the Network, signing another new customer just this month. Nistevo has eliminated the need to rely on new business or outside investments to support our operations. Unlike our competitors, we are now well-positioned to weather today's difficult economy and service our customers for years to come --growing our business as new revenue sources unfold."
"Dial has been a member of the Nistevo Network for over a year, and recently expanded our subscription with a multi-year agreement," said Mark Russell, director of transportation at Dial. "Nistevo's commitment to being cash-flow positive is both smart and unique in today's economy. We are pleased to have aligned our company with a vendor that is committed to protecting our collaborative logistics investment by ensuring its long-term viability."
"Financial stability is a dark cloud that hovers over many software vendors today, especially as Global 1000 companies seek long-term technology partners," Adrian Gonzalez, director, Logistics Executive Council at ARC Advisory Group. "Not surprising, improving the balance sheet has become a priority for both private and public vendors, but the clock is ticking. Vendors that are unable to demonstrate financial viability by the end of 2003 will face greater difficulties in the future or even extinction. Fortunately for Nistevo, the company has managed to reach this important milestone sooner rather than later."
About Nistevo
Nistevo is the leading Collaborative Logistics Network(SM) for transportation management, a hosted software service that enables manufacturers, retailers and carriers to plan, execute and settle their inbound and outbound full and less-than-truckload transportation. The Nistevo Network offers visibility and event management, contract management, execution, and tours that can be deployed in as little as 65 days. Using the Network, members are managing more than three million shipments annually, resulting in more than three billion miles of freight moved. Nistevo's clients include Baxter Healthcare, Church & Dwight Co., General Mills, Georgia-Pacific, Ivex Packaging, HP Hood and Seneca Foods, among others. For more information, visit www.nistevo.com.