<B> Tech Talk</B>
By Mary Ann McNulty, Technology Editor
<B>Tech Titans See Green--And Lots Of It</B>
Revenues and profits continued at a record pace at publicly-traded travel technology vendors Sabre, Galileo and Pegasus Systems, with all three reporting double-digit revenue gains over 1997 levels.
The Sabre Group reported 1998 sales of $2.3 billion, 29 percent more than 1997. Net earnings rose 16.1 percent to $232 million, but included a one-time gain of $9 million. Noting the strong fourth quarter that helped the company produce such results, Sabre president and CEO Michael Durham said it was "driven mainly by rapid growth in our outsourcing business and steady growth in our electronic travel distribution business." Besides US Airways, Sabre also signed outsourcing agreements with Gulf Air, Aerolineas Argentinas and Pakistan International Airways.
Galileo International reported 1998 revenues of $1.48 billion, up 9.6 percent from the year before. Net earnings rose 29.2 percent, to $203.4 million. Fourth-quarter net income skyrocketed 61.7 percent, to $36 million. "Solid growth in international bookings was a key factor that drove the nearly 11 percent increase in revenues for global distribution services," said James Barlett, Galileo's chairman, president and CEO.
Meanwhile Pegasus Systems in Dallas reported 1998 revenues of $29.1 million, up 39 percent from 1997. Net income was $4.2 million, versus just $589,000 in 1997. In the fourth quarter alone, revenues totaled $8.3 million, 46.7 percent more than the same period in 1997.
<a name="2"><B>Investors, Corps. Drawn To Expense Automation</B>
Expense reporting continues to be one of the hottest areas of travel technology for investors and corporate decision makers alike. InterPro Expense Systems, Pleasanton, Calif., is implementing its Expense Express to 1,500 U.S.-based employees of Johnson Controls, Milwaukee, while VIN.net International, Barrington, Ill., will roll out its system to streamline expense reporting and reimbursement for 17,000 employees of FMC Corp., Chicago. Meanwhile, Captura Software of Bothell, Wash., this month closed a $22 million round of financing, bringing its total capitalization to $38 million. The latest round of financing was led by the Sprout Group, the venture capital arm of Donaldson, Lufkin & Jenrette.
<a name="3"><B>Concur, Necho Enhance Functionality</B>
Continuing the relationship it forged with Unisys Corp. last year, Necho Systems Inc. added federal acquisition requirement functionality to its NavigatER software. Government contractors using NavigatER now can download the latest government FAR guidelines to easily identify and separate expenses that can be billed back to the government and those that cannot. As part of its outsourcing suite for corporations and agencies, Unisys offers Necho's software. Separately, Necho announced that board member Jim Mingle has been named executive vice president of business development.
Concur Technologies, meanwhile, debuted its "Employee Desktop," an integrated version of its travel expense and procurement solutions, and announced an alliance with Campbell Pope and Associates Ltd., a New Zealand-based information systems consulting firm, to help with product deployment in the Asia-Pacific region.
<a name="4"><B>Galileo Invests In Two More Ventures</B>
Spending some of its cash, Galileo announced minority investments in two more high-tech companies, ObjectSpace Inc. and Destinations.com Inc. Dallas-based ObjectSpace offers Java-based software and consulting in the design of distributed, object-oriented computing systems. Galileo is the primary investor in this round of financing, totaling $10 million. Seattle-based Destinations.com offers reservation services for resorts, convention and visitors bureaus and destination marketing organizations. Galileo will receive a seat on the board of each company, which will be filled by its CFO, Paul Bristow. Galileo also recently invested in Uniglobe Travel Online.
<a name="5"><B>AMR Sells TeleService Resources</B>
AMR Corp. earlier this month completed the sale of its TeleService Resources unit to Los Angeles-based Platinum Equity Holdings, owner of 14 corporations involved in software development, information systems and computer services. TSR provides reservation services to airlines and hotels, as well as call management services to Fortune 500 companies. It has 5,000 employees and 1998 revenues of $115 million. AMR will stockpile an undisclosed amount of cash from the sale.