KANA Software (KANA.PK), which develops multi-channel customer service software, has spent the year patching things up because of financial reporting issues. In fact, it looks like the company will make it back to the Bulletin board and then Nasdaq.
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! (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.