Wednesday, November 26, 2008

Jit Saxena resigns as Netezza revenue increases 50 percent

By Efrain Viscarolasaga

Data warehouse server maker Netezza Corp., of Marlborough, reports the company had a 51 percent revenue increase this quarter, while also announcing a new CEO.

Jit Saxena, who co-founded the company in 2000 and has held the position of CEO ever since, will step down from the post on January 31, while retaining his position as chairman of the board. Long-time Netezza (NYSE: NZ) president and COO Jim Baum will take the reigns as CEO.

Netezza, which went public in 2007, reported $50.6 million in revenue in the third fiscal quarter, outshining the same period last year by more than $17 million. The company also improved its net income from $1.6 million during the third quarter last year to $3.5 million in the most recent quarter.

While executives said the data management device maker would remain “cautious given the current economic environment,” officials also raised its revenue guidance for the fiscal year (ending January 31) from $182 million to $187 million.

If attained, that revenue would represent a $60 million jump over last year’s revenue of $126.6 million.

Netezza was founded in 2000, and after receiving a total of $83 million in private funding, it went public in 2007 in a $124 million initial public offering. The company counts Amazon.com, Blue Cross Blue Shield of Massachusetts, Burlington Coat Factory, Guitar Center and Burlington-based wholesale VoIP provider iBasis Inc. as its customers.

Saxena, 62, previously worked for analytical CRM software developer Applix Inc., taking that company public in 1994. Last year, Saxena was named a Mass High Tech All-Star, and Netezza’s IPO was a finalist in the Mass High Tech/Association for Corporate Growth Boston (ACG) Tech Dealmaker Awards.