Synygy Experiences 18th Consecutive Year of Success

Enters 2009 with Best-Ever Visibility into Future Record Performance

Chester, Pa., January 28, 2009 —Synygy Inc., the most experienced provider of sales performance management (SPM) solutions, today reported corporate performance results for 2008 and announced the completion of its eighteenth consecutive year of success, a testament to the company’s long-term viability and strength.

“In the current economic climate, we expect SPM industry consolidation to occur and for some competitors to go out of business as a result of financial weakness,” said Mark A. Stiffler, Synygy president and CEO. “On the other hand, Synygy has record visibility into continued successful future performance due to a very high base of recurring revenue and an exceptional client retention rate, which further positions Synygy as the leader in the SPM space.”

Client acquisition, retention, and growth
Synygy increased the number of clients acquired in 2008 by more than 140 percent over the prior year. The average contract value for new clients was nearly $1 million. Representing a wide range of industries, new clients in 2008 included Allied InfoSecurity, Axcan Pharma, CATS Technology, Ethicon Endo-Surgery, McKesson Provider Technologies, SecureElement Infrastructure Solutions, Verilogue, and others.

The company retained almost 95 percent of its client base, with more than three-quarters of those clients increasing their business with Synygy in 2008. The average revenue increase at these clients was an average of nearly 30 percent over the prior year. Two clients each increased their business with Synygy by more than $1 million in 2008.

Recurring revenue continued to grow and represented nearly 75 percent of total revenue in 2008. Gross margins declined very slightly; however, EBITDA increased over the prior year. Despite some fully-negotiated deals being put on hold as the worldwide economic situation worsened, revenue grew 15 percent in the fourth quarter over the prior quarter, with subscription revenue, gross profit, and EBITDA all up versus the prior quarter.

Software innovation
2008 saw the eleventh major release of Synygy’s comprehensive suite of SPM applications. This award-winning, 100 percent web-native, Software-as-a-Service (SaaS) application was the result of more than 600 staff-years of development effort, and it leapfrogs competitive solutions along every dimension of performance, including flexibility, scalability, functionality, and ease of use.

Additional 2008 achievements

• Version 11 of Synygy’s SPM software was proven to process approximately 50% faster than version 10, with the capability to scale to more than 100,000 participants, hundreds of data sources, and more than a billion sales transactions per client.
• Synygy increased the number of clients using its on-demand objectives management and quotas management applications at a record rate.
• Synygy continues to be the only best-of-breed SaaS provider of SPM applications exclusively hosted at company-owned data centers.
• Synygy launched a comprehensive set of sales operations management (SOM) services that help companies analyze gaps in their sales operations and implement solutions to create and support a high-performing sales force.
• Synygy’s expanded SOM consulting practice grew dramatically in 2008, with the number of clients increasing 71 percent over the prior year.
• Leveraging Synygy’s expertise in creating SaaS applications, Synygy launched on-demand development services to meet the need for fully outsourced, staff-augmented or parallel path software product development services.
• Synygy doubled registrations for its Executive Education webcasts and increased the number of participating Fortune 100 companies by 20 percent, with many registrants participating in the entire series of webcasts.
• Synygy hosted two popular SYNYGY SALES PERFORMANCE CONFERENCES, attracting senior-level audiences with a robust educational program focused on improving sales operations, managing sales compensation, and optimizing sales performance.
• Synygy expanded its global footprint and met its hiring goals for Europe, continuing to be the largest SPM employer in Europe.

Certifications and industry awards

• Synygy undertook independent third-party audits and received certification for SAS70 Type II, ISO 17799/2700, Safe Harbor and OWASP, and was found in compliance with Health Insurance Portability and Accountability Act standards for privacy of individually identifiable health information.
• Synygy again received a “Positive” rating in Gartner’s 2008 MarketScope for Sales Incentive Compensation Management Software.
• Synygy was selected as winner of the “Excellence in Human Resources through Technology” award by the Asia-Pacific Human Resources Management Congress.
• Synygy was named a market leader in incentive management at the 2008 CRM Market Awards hosted by CRM Magazine.
• Synygy was named one of the top ten exciting companies to work for in a NASSCOM-sponsored survey of emerging IT companies conducted by Right Management India.

2009 Projections

Synygy starts 2009 with a forecast of record subscription revenue and profit in the first quarter and record visibility into full-year revenue and profit. Revenue under contract for 2009 already exceeds 80 percent of forecasted expenses for the year. As a result, visibility into future performance is at an all-time high.

“We are thrilled with our performance in 2008, especially our accelerated growth in the fourth quarter, and we are even more excited by our visibility into future performance in 2009,” Stiffler continued. “Our success is driven by our unmatched breadth of integrated SPM software solutions and our depth of SPM experience. Combined with our eighteen years of success, Synygy clearly remains the market and technology leader in the SPM space.”

About Synygy

Synygy is the most experienced provider of sales performance management (SPM) solutions. Synygy’s software and services include solutions for managing sales territories and channels, sales talent, sales quotas and objectives, sales compensation, sales metrics and analytics, sales data processes, sales reports and analyses, and sales communications. Based in Chester, Pennsylvania and with extensive operations in Europe and Asia, Synygy has achieved 18 consecutive years of success. www.synygy.com