Nimsoft, The Planet: Financials Continue Strong
Sometimes it’s difficult to measure the “health” of the managed services market because so many companies are privately held and don’t disclose financials. However, two companies — Nimsoft and The Planet — this week provided some important clues about their well-being and the continued growth of the managed services industry.
Nimsoft–which develops software for MSPs as well as corporate IT managers–says the company signed up 50 new customers in Q4. New bookings were up 28 percent during the quarter and 47 percent for the year. (You can find the complete press release here.)
Meanwhile, The Planet, a hosting provider that’s pushing into managed services and launching a storage cloud, says the company “ended the fourth quarter with solid revenue growth and another record year in 2008,” according to Chairman and CEO Douglas J. Erwin. “Across every unit in the company, we made significant gains.”
The Planet has a new $45 million credit facility to help fuel growth and maintain financial stability, Erwin added. Wachovia Bank NA led the transaction with $30 million, followed by Bank of America with $15 million. (The complete financial press release is here.)
Ironically, it’s my understanding that The Planet uses Nimsoft’s managed services software.
Naturally, we all need to be careful when we read financial press releases. Privately held companies like The Planet and Nimsoft don’t need to disclose their financial performance, so they only offer tidbits of information. For the most part. private firms don’t disclose key data points like net income.
That’s not a criticism of The Planet nor Nimsoft. Fact is, they share more financial information than most private firms in the MSP space. And generally speaking it’s good to see their continued growth amid the recession.