Orchestria Update

Here's an update on Orchestria, which sells content control software:

  • Product filters many types of info: emails, instant messages, files at rest, Web traffic, etc.
  • Filters are at Internet boundary; end points such as printers, file systems, USB drives; and internal servers.
  • Company has had great success in financial services and insurance verticals, dealing with messaging compliance; for example, checking for money laundering, and maintaining Chinese walls between investment banking and broker/dealer divisions.
  • Now expanding to more horizontal marketplace.
  • Messaging compliance (for financial services) has historically been main part of the business. Now broadening offering, as follows:
    • Data Loss Prevention. Goal is 40% of revenues in calendar 2008.
    • Messaging Compliance. Goal is 40% of revenues in calendar 2008.
    • Information Classification. Goal is 20% of revenues in calendar 2008.
  • Overall positioning statement: "Information protection and control."
  • Financials:
    • Calendar 2007 revenues $27 million; 66% up on 2006.
    • Healthy growth expected for calendar 2008--goal is $40 million to $45 million in revenues.
    • Excess cash being reinvested to support growth, hence generally breakeven profitability.
  • Main competition:
    • Data Loss Prevention. Symantec/Vontu, Reconnex, Vericept.
    • Messaging Compliance. Not a lot so far within the financial services niche.
    • Information Classification. Nascent and confused market, clear competition not gelled yet.

... David Ferris

One Comment

  1. Anonymous
    Posted September 8, 2008 at 10:41 AM | Permalink

    Posting from an anonymous source:

    * Calendar 2006 revenues were $20,792K
    * Calendar 2007 revenues were $26,527K. So 66% growth claim for 2007 over 2008 incorrect
    * Goal of 40% of revenues being DLP in cal 2008 won’t happen because the solution was not ready for prime time when it was launched/re-launched in 5/2008
    * Information classification. As of 2/2008, Orchestria had one client in this area, Aeroflex, deal size about $150K
    * Revenues declining in 2008, likely to come in around $21-$22M–MAYBE
    * 30 people laid off in April
    * Legal Hold discontinued 2/2008
    * CFO left in August
    * For sale, potential acquirors valuing purchasing in the $60M to $80M range
    * New markets sales reps–gone

  2. Posted September 24, 2008 at 1:29 AM | Permalink

    The preceding comment was provided anonymously to Ferris Research. It does not necessarily reflect our opinions of Orchestria or its business.

    It should be noted that Orchestria disputes some of the statements made above. And anyway, putting this in context, it’s true of all businesses that things don’t always go as planned.

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