Tidal Software Announces 48% Growth in License Revenue for Fiscal Year 2007

Tidal Software™, a leading provider of application scheduling and performance management software, today announced a record close to its fiscal year ending June 30, 2007, with new license revenue up 48% over the previous year. Driven by IT trends in datacenter consolidation and application performance management, new and existing customers made record investments in Tidal products to meet their demand for more automated control of their business process applications.

The strong financial performance for the year was lead by new license revenues resulting in a total revenue increase of nearly 40%. Revenue for professional services increased over 35% driven by new product deployments and maintenance revenue increased 23% for the year. The results mark seventeen consecutive quarters that the company has been profitable on operations and five years of being cash flow positive, allowing the company to continue investing aggressively in new product development and channels to market.

"The market continues to clearly see the business value of Tidal's solutions for IT automation," said Flint Brenton, President and CEO of Tidal Software. "We continue to win because our products bridge key gaps in IT operations by bringing performance management data directly into the automation of IT processes. The result is solutions that automate the operational, diagnostic, and corrective action processes needed to run the business applications that run the enterprise."

In FY'07 the company capitalized on the trend towards datacenter consolidation and standardization in IT operations with the release of Tidal™ Enterprise Scheduler 5.3. The release provided companies a single solution for automating IT operations across a broad range of packaged and custom applications in both distributed and mainframe environments. In fiscal '07 sales of Tidal Enterprise Scheduler continued strong growth as customers including Coldwater Creek, Coventry Healthcare, Graybar, Time Warner Cable, and Staples selected and expanded the use of Tidal Enterprise Scheduler for their consolidation and standardization efforts.

Throughout the year the company saw increased interest and growth in its application performance management solutions for both ERP and SOA applications. In ERP application management, new releases of Tidal™ Horizon™ for SAP® Solutions, which delivers automated performance analysis and service level reporting for SAP solutions, and Tidal™ ASAP, which creates automated event-based optimization of background processing based on overall business process performance, were selected and deployed by customers including Volvo Aero, Northrup Grumman, Smithfield Foods, Sikorsky, and Lockheed Martin. The company expects to see this trend continue as enterprises look for new ways to improve resource utilization and service level delivery for these business critical applications.

The fourth quarter was marked by an increasing number of competitive wins for Tidal™ Intersperse™, the company's new product for monitoring and management of Java, .NET, and SOA applications. In this highly competitive product segment, Tidal has brought to market a unique solution that maps the business process and monitors service levels down to individual process executions across the heterogeneous infrastructure found in many SOA deployments. With more companies taking SOA based applications into production, Tidal expects others to follow companies such as Lehman Bros., ING Direct, Mizuho Corporate Bank, the New York Stock Exchange, and Time Warner Cable who have selected Tidal Intersperse for their production monitoring of SOA applications.

Other fourth quarter highlights included the first annual International Tidal Users Group. Created in response to customer demand, attendees included representatives from many sectors using the full range of Tidal products. Speakers included Tidal users at General Mills, ING Direct, and Genzyme, and Gartner Managing Vice President Ray Paquet. Next month the company will be announcing details of iTUG '08.

"Our vision is to bring the market a new level in automation of the operation, performance monitoring, and corrective actions needed to manage service level delivery for each of the major ERP application and SOA infrastructure stacks," said Brenton. "And as companies combine these stacks, for example using SAP NetWeaver with .NET, our technology can provide for the monitoring and operation of these heterogeneous solutions. What's important is bringing together all the low level details into a composite picture of the running business process. With our vision, our organization, and our strong financial execution, Tidal is well positioned to support the key IT trends and continue our growth."

For FY'08 the company expects the IT trends in consolidation, application performance management, and production deployment of SOA to drive accelerating adoption of its products. Product plans include the release of new application performance management capabilities for PeopleSoft and Oracle eBusiness Suite this year. The company also expects to continue to expand its coverage for mapping and monitoring of portal, process engine, and message bus infrastructure for Java, .NET, and SOA. Further, the company plans to extend Tidal ASAP and Enterprise Scheduler to encompass the Gartner vision of the IT Workload Automation Broker, expanding the capabilities for event-based enterprise process and application server resource management. The company will also continue its focus on expansion into key international markets and new sales channels.