Several Significant Achievements In 2008 For TRADITION SOFTWARE
PRESS RELEASE
TRADITION SOFTWARE, the leading provider of lien software solutions to the US construction industry, announced its year end results, as the company reported a nine percent (9%) revenue growth, GAAP Net Income and EBITDA in 2008.
“2008 was a good year for the company despite the continued troubles in the banking and new home building markets” said Craig Altman, Founder/President of TRADITION SOFTWARE, INC. Our unwavering commitment since the company was founded to Research and Development has resulted in several enhancements to our products which have been well received by our TraditionInk.com customers and PreLien2Lien annual subscribers. We can feel very proud as a privately owned company that our team of employees’ work during the past year produced revenue growth when most other companies saw revenue decrease sharply.”
Revenue was up five (5) percent for Annual Subscription renewals for PreLien2Lien, a key metric for customer loyalty when software and IT budgets were frozen or decreased dramatically in the US construction market. Fifteen (15) percent of the PreLien2Lien Annual Subscribers do business in four or more states. Many companies expanded their business in additional states, resulting in upgrades in site licenses during the year.
Revenue was also up sixty-five (65) percent for the TraditionInk.com division. A second straight year of strong revenue growth for the ink and toner supplies national online storefront has resulted in significant increased lines of credit from its two primary suppliers. Mike Walsh was hired by the company to be the first dedicated Online Sales Manager for the division, resulting in better communication with customers and more effective relationships with its primary suppliers.
The online sales channel for the software division through TraditionSoftware.com experienced a thirteen (13) percent growth in sales revenue over the previous year, with it now having three hundred (300) products, including Annual Subscription renewals, individual lien notices, PreLien2Lien software and Walz forms available for purchase at the website. The website helped produce thirteen (13) percent of the software division’s overall revenue in 2008. Additionally, there was an eight hundred fifty (850) percent increase in revenue from the sale online of Word templates of lien notices from the site in 2008, with a goal of doubling the number of individual lien notices for sale in 2009.
TraditionInk.com now has 1,200 products available online for resale. One critical factor where TraditionInk.com failed to reach its stated goal for 2008 was in the addition of new products for resale. “We had looked to double the amount of products we had for sale online in 2008, but our resources only allowed us to increase by thirty-three (33) percent,” said Craig Altman. “However, we did add several new higher margin products, including several more of the popular ValuePacks that make a multi product order competitively discounted while being very simple to order for the customer. We did sign an agreement to resell exclusively online compatible mailing labels for the popular DYMO postage printers that attach directly to computers via a USB connection.”
Sales revenue for new PreLien2Lien software licenses was down twenty-five (25) percent in 2008. “Adverse market conditions affected sales at all software companies in 2008, but our focus on the US construction market made it a tough year for new software sales,” said Craig Altman. “We currently have an open position for a National Sales Manager which will remain on hold status until economic conditions improve nationally.” The sales efforts will be managed jointly in the interim by Craig Altman and Michael Francis, Customer Service Manager, who was promoted internally to his current position in December 2008. The company did gain several new notable accounts in 2008, including the headquarters locations of national companies like BUILDER’S FENCE COMPANY, MILGARD WINDOWS, MASCO BUILDER CABINET GROUP and STORMTRAP.
The company is now seven months away from retiring a long term debt obligation. Additionally, a note payable to the former corporate owner of PreLien2Lien was paid off at the end of 2008. TRADITION SOFTWARE did increase its short term debt to finance industry trade shows (World Of Concrete, National Electrical Contractors Association) in 2008. Like many companies TRADITION SOFTWARE is ending its trade show marketing in 2009 due to a national decrease in trade show attendance. A continuation of its popular onsite customer training visits will occur in ten (10) major metro markets (Cleveland, OH, Dallas, TX, Houston, TX, Los Angeles, CA, Louisville, KY, Oakland, CA, Orlando, FL, Portland, OR, San Jose, CA, Seattle, WA) in 2009 after customers in seven (7) other regional markets (Anaheim, CA, Denver, CO, Detroit, MI, Chicago, IL, Milwaukee, WI, Riverside, CA, San Diego, CA) were visited in 2008.
Technology wise, PreLien2Lien had two significant features added in 2008. Users can now enjoy the benefit of printing mailing labels with USB attached DYMO® printers such as the LabelWriter Twin Turbo or LabelWriter 400 Turbo. A user now can print easily an individual legal party’s mail address with the click of a button, or the multiple project’s legal parties, saving the user a great deal of time compared to manually inserting sheets of labels into a laser or inkjet printer. Additionally, a Lien Reminder system debuted on the PROJECT tab, calculating filing deadlines for required state 1st notices and lien deadlines for private projects after simple user input of a project’s beginning and end (if known) dates. “This is a feature customers have been requesting since 2005 when TRADITION SOFTWARE purchased PreLien2Lien,” said Craig Altman. “Miriam Liskin, Software Development Manager, did great work to design a simple user interface that is powerful enough to accommodate future enhancements planned for both Bond Claim and Stop Notice reminders.”
About TRADITION SOFTWARE
TRADITION SOFTWARE, INC. was founded in 2005 by its Founder and President, Craig Altman. TRADITION SOFTWARE offers the industry standard software solution, PreLien2Lien, to contractors and subcontractors in the US construction industry for lien management. TraditionInk.com was formed in 2005 as a new Division, offering businesses and consumers name brand and compatible replacement ink supplies at 10% – 60% less than traditional office supply retailers.
TRADITION SOFTWARE’s headquarters is in Roseville, CA, just north of the state capital in Sacramento. The company’s mission is to offer superior products with friendly, knowledgeable technical support. We don’t do this because it easy. Our employees do it because it benefits our customers.
Experience the Tradition.