What’s more, KANA’s fundamentals are improving nicely. In the third quarter, revenues increased 20% to $13.1 million. License revenues increased 174% to $4.4 million, showing that the company is getting much more traction with new customers.
However, the company is still posting losses. The net loss for the quarter was $582,000 or $0.02 per share, which compares to last year’s net loss of $1.3 million or $0.04 per share.
Basically, KANA’s software helps companies deliver consistent customer service across many touch points, such as chat, email, call centers and Web self-service. The company has about 600 customers, such as ADP (NASDAQ:ADP), Intel (NASDAQ:INTC), and Yahoo! (NASDAQ:YHOO).
Also, KANA is putting more resources into its direct sales force. This should help continue the sales momentum into 2007.
True, KANA is still a small company – and there is a lot of risk. But, so far, the company is making the right moves.