Click Has The Relationship-Management BluesClick Has The Relationship-Management Blues

Like so many other software categories, channel-relationship management products are dragging through this recession. The software is designed to unite sales and supply-chain initiatives, but few potential buyers see a clear return on investment for this particular application, says Meta Group analyst Gene Alvarez. And many companies equate the software with E-commerce (read: the dot-bomb). A turnaround will have to wait until large organizations that do tremendous amounts of indirect business realize that their Web sites can support channel partners, Alvarez says.

The most recent victim of the sales slump is Click Commerce Inc. (CKCM-Nasdaq), which recently warned that its earnings will be below earlier forecasts.

Company executives say revenue will be $42.8 million to $43.5 million. Analysts had expected $52.5 million. US Bancorp Piper Jaffray downgraded the stock from "outperform" to "market perform" on the news.

Nevertheless, Meta Group says companies remain interested in channel management and are apt to buy products as the economy improves. Many companies are expected to evaluate the software, Alvarez says, with deployments predicted to increase significantly by 2005.