Performix secures €1.27m in US and UK contracts

Performix Technologies, a Dublin-based company which markets a solution to motivate employees in call centres while increasing profitability, yesterday said it had secured new contracts in the US and the UK as well as a second round of venture capital funding for expansion.

Despite the economic slowdown which has hit tech companies in the US, Performix has secured several deals with major US companies such as Continental Airlines, Northwest Airlines and West Teleservices since it expanded into the US market eight months ago.

Yesterday, the company announced a contract with Chase Manhattan Bank US which, along with a deal with Co-operative Bank in the UK, is estimated at more than £1 million (€1.27 million). Two other major US contracts are expected to be announced shortly. Since mid-2000, Performix has won contracts with AOL Europe, Esat Digifone, Conduit Europe, GATT, Zomax and Uniysis.

Performix also said it had closed a second round of funding in February amounting to £7.5 million and increased the company's valuation from £22.3 million to £37.5 million. Investors include Industrial Credit Corporation (ICC), Software Partners and four new institutional shareholders. The increase in valuation was "encouraging in a market where comparable quoted companies are down circa 60 per cent in the period April 2000 to March 2001", said Mr Conor Sheahan, chief financial officer.

Named best young company of 2000 by the Irish Software Association, Performix employs 50 people in Dublin, where the software is made, 25 in the UK and 33 in the US, according to chief executive officer, Mr Cathal McGloin, who moved with his family to Burlington, Massachusetts, in September to run the US operation.

"The US is about 80-85 per cent of the global call centre market," he said, speaking from Burlington. "We have got the funds to grow and continue growing and move into where we want to be which is making a profit at the end of this year.

Three out of every 100 American workers are employed at contact centres, said to Mr McGloin. "We thought Ireland was fantastic for call centres. We have one customer here who alone has more people in their call centres than the entire Irish and Northern Irish call centres. If we are really going to be a global company this is where we needed to make it."

Established in 1998 by brothers Cathal and Ray McGloin from Donegal, Performix promotes its Emvolve Performance Manager as increasing performance by up to 30 per cent "by focusing on the industry's greatest asset - their employees". The call centre model had broken down, said Mr McGloin. "Call centres developed a bad name as being sweat shops. It had got to the stage in big call centres where a 55-year-old person back from retirement had to put his hand up to ask a 25-yearold kid could he get off the phone to go to the bathroom. BT in the UK went on strike 16 months ago for the first time in 15 years because of the way people were being treated in these centres."