Software division helps Pitney Bowes increase revenues

Pitney Bowes, parent company of North Greenbush-based Pitney Bowes MapInfo, Thursday posted fourth q
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Pitney Bowes, parent company of North Greenbush-based Pitney Bowes MapInfo, Thursday posted fourth quarter and 2007’s annual results with the U.S. Securities and Exchange Commission.

The Stamford, Conn.-based company reported fourth quarter revenues of $1.7 billion, up 8 percent from fourth quarter 2006 and annual revenues of $6.1 billion, up 7 percent from 2006.

According to documents filed with the SEC, Pitney Bowes’ software segment had $122 million in fourth-quarter revenue, a 95 percent year-over-year jump. Company officials credited the acquisition of location intelligence software company MapInfo, in April 2007, for 62 percent of the fourth-quarter revenue growth; 6 percent of the growth was attributed to the weakening of the U.S. dollar.

“That still leaves 27 percent organic growth in software [revenues]. There are other pieces of Pitney Bowes that has [software sales] but predominantly that’s mostly us,” Pitney Bowes Software President Mike Hickey said. “The Pitney Bowes software group had a very healthy fourth quarter.”

Hickey was formerly the chief operating officer of MapInfo. He said he spent most of the fourth quarter merging MapInfo’s strategy and sales teams with personnel from another software company called Group 1 of Lanham, Md. He said Pitney Bowes acquired Group 1 in September and has since merged both operations under the title of Pitney Bowes Software.

“We’re still going through some branding analysis … to determine if Pitney Bowes Software is the right name, what would be the right name [and] what we do with the old brands. We’ve decided not to change the Web sites until final decisions have been made,” Hickey said.

Company employment levels in Troy have been raised since the acquisition and are now at about 450, Hickey said. Worldwide Pitney Bowes Software employs about 1,800.

“We anticipated the factors that affected our results for the quarter and are pleased with the positive impact of the actions we have taken in response to current conditions. During the quarter, we also benefited from the ongoing demand by large enterprise customers for our expanded software solutions and the continued success of our mail services business,” Pitney Bowes President and CEO Murray Martin stated.

Hickey said about 55 percent of Pitney Bowes Software’s approximately $450 million annual revenues can be attributed to the combined location intelligence software of MapInfo and Group 1.

Some of MapInfo’s software provides detailed demographics information and house-to-house data for companies looking to target goods and services to likely customers.

Pitney Bowes reported two sets of net income figures. The company’s net income, after adjustments for cost-reducing measures, tax changes and other factors, was $157 million for the fourth quarter and $601 million for 2007. Using Generally Accepted Accounting Principles, Pitney Bowes officials reported a net loss of $58 million for the fourth quarter and $367 million in net income for the year.

Pitney Bowes’ stock closed at $36.90 Friday, up 29 cents on the day.

Categories: Business

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