Model N (MODN) Tops Q1 EPS by 1c; New CEO Named

Model N (NYSE: MODN) reported Q1 EPS of ($0.16), $0.01 better than the analyst estimate of ($0.17). Revenue for the quarter came in at $24.5 million versus the consensus estimate of $24.1 million.

Model N also announced that effective February 21, 2016, Founder and current Chairman and Chief Executive Officer, Zack Rinat, will assume the newly-created role of Executive Chairman of the company. Edward Sander will assume the role of Chief Executive Officer and will join the company’s Board of Directors.

In a separate release, the company also announced strong results for the first quarter of fiscal year 2016 ended December 31, 2015. The company will be hosting a conference call at 2pm Pacific Time today to discuss the financial results and the appointment of Mr. Sander.

“Zack Rinat has demonstrated exemplary leadership as Model N’s CEO for the past 16 years. Under his stewardship, the company has pioneered the market for Revenue Management partnering with a blue-chip customer base,” said Charles Robel, Model N’s Lead Independent Director. “The vision he set will continue with his contributions as Executive Chairman.”

Edward Sander was most recently Global Vice President and General Manager at NICE Systems. Mr. Sander brings a decade of experience running high growth, global enterprise software organizations. As General Manager of the company’s NICE Actimize Anti-Money Laundering line of business, Mr. Sander oversaw product creation, solution delivery, go-to-market planning, and client relationship management activities. Mr. Sander has expertise in portfolio management and new product development across analytics, audit-compliance, business process management, and customer relationship management solutions for the banking, insurance, energy, and life science markets. Prior to joining NICE Systems, he held leadership positions at other leading enterprise software companies including IntraLinks and SAP.

“At this juncture in the Model N journey with strong momentum in the transition to the SaaS business model, the board was in full support of Zack’s decision to transition the leadership of the company,” said Mark Leslie, member of the Model N Board of Directors. “After an extensive search, we are thrilled that Edward Sander will become our new CEO. Edward has the experience, skills, and proven track record to take Model N to new heights in the years ahead.”

“I am excited to join Model N as CEO because of the tremendous opportunity to become a strategic partner to enterprises in their mission to grow their revenues. Revenue Management is increasingly recognized as the catalyst to turn customer relationships into revenue,” said Edward Sander, Model N’s incoming Chief Executive Officer. “Zack has created a company with staying power, a customer-centric culture with DARE core values, and a blue-chip customer base. These assets are strong stepping stones to accelerate momentum and scale the company to bring the power of CRM2 to fruition. I am fortunate to have the opportunity to lead the Model N team to the next chapter.”

“As a founder of Model N, I am responsible to ensure the long-term success of our customers, employees, partners, shareholders and ultimately Model N. I am personally gratified to have attracted an executive of Ed’s caliber to be our CEO,” said Zack Rinat, Founder and current Chairman and Chief Executive Officer of Model N. “I am very proud of both our customers’ and our own success. This is our time to unleash the power of Revenue Management to the broader market. Edward is bringing additional executive leadership and deep scalability know-how to Model N. I will remain 100% dedicated to Model N and to supporting Ed in my capacity as Executive Chairman focused on board development, strategy and industry awareness of the power of revenue management. I am delighted to welcome Ed to the company, and I look forward to working closely with him to ensure continuity over the coming months and years.”

GUIDANCE:

Model N sees Q2 2016 EPS of ($0.26)-($0.25), versus the consensus of ($0.17). Model N sees Q2 2016 revenue of $25.4-25.6 million, versus the consensus of $25.7 million.

Model N sees FY2016 EPS of ($0.65)-($0.63), versus the consensus of ($0.65). Model N sees FY2016 revenue of $106.5-107.5 million, versus the consensus of $106.5 million.

For earnings history and earnings-related data on Model N (MODN) click here.

You May Also Be Interested In

• Tesla touts acceleration of new models, but Q1 results fall short of estimates
• Visa (V) Tops Q2 EPS by 7c, offers guidance
• Visa (V) earnings and revenue exceed estimates in Q2, shares rise