Financial Engineering Associates, Inc. (FEA), a leader in the development of software technologies for energy and market risk management, reported today that the company’s revenue and earnings growth continues to counter the weakening trends commonly forecast for the financial software industry in 2001.
For fiscal year 2001, FEA sales grew approximately 50% year-over-year, outpacing last year’s growth of 34%, and continuing to accelerate the prior year’s growth of 21%. Privately-held, FEA reported full fiscal year 2001 results for the year-ended February 28, 2001, to shareholders.
"There is certainly seasonality in the analytics software business," said Tracie Rowson, Executive Vice President, "but FEA has maintained consistent year-to-year quarterly revenue growth since 1997. We ended fiscal year 2001 with a momentum much stronger than might have been assumed from observing the general financial software market." FEA's strategy appears to be paying off. The company’s Excel add-in products bring easy-to-use functionality to client-customized spreadsheets, while its analytic programming libraries are licensed by FEA Alliance Partners as embedded components of customized trading and risk management systems and services installed worldwide.
FEA participates in two sectors where global demand for IT investment is presently increasing – portfolio market risk management, and energy and power deal valuation and exposure tools. According to Laurent Birade, Global Sales Manager, FEA, the company’s clients are driving strong demand for corporate IT investment in risk analytics. "Market uncertainty is now getting strong attention from a growing number of organization members -- top management, treasury departments, trading oversight, as well as by shareholders, creditors, and regulators -- each calling upon our clients to understand how to value portfolio assets and how to manage their market risk effectively." With half its user base outside North America, FEA clients extend internationally and range from major financial institutions to private investment houses, and from diverse companies with market and energy exposures, to power management enterprises around the globe, he added.
To open fiscal 2002, FEA announced new releases of two of its leading products: VaRworks 4.0, a comprehensive set of value-at-risk (VAR) tools, and @ENERGY 2.0, the latest release of the company’s industry-standard pricing, modeling and forecasting tools tailored to the energy and power markets. With new releases anticipated through the year FEA continues superior coverage of its core strengths in derivative analytics for the energy, commodity, interest rate, foreign exchange and equity markets.
Mark Garman, Chief Scientist and President of FEA said "Our recent momentum has been gratifying, but the pace of change in our environment also has accelerated. There are a lot of challenges ahead to keep up with what is happening in our markets, our technology base, and our competitors. While I am optimistic, I think that in FY 2002, FEA will have to be particularly nimble to maintain such levels of growth in the prevailing economic climate."