Andale Breaks Even with 300% Revenue Growth, Becomes eBay Preferred Solution Provider
By Ina Steiner
April 4, 2002

Andale Inc., a leading provider of auction management tools and services for online sellers, announced today that it reached cash flow breakeven in February, six months ahead of expectations. The company also said it has entered into a strategic agreement with eBay in which it will become a preferred partner.

Andale reached break even cash flow in February of this year. Strategic product investments in 2001 led to strong year-over-year revenue growth of more than 300 percent, the company reported.

"We are extremely grateful to our customers, our employees, and partners for helping us achieve this financial milestone," said Munjal Shah, CEO of Andale. Shah was especially appreciative of Andale customers whose support helped the company reach this milestone. "This announcement is important for the merchants who sell on eBay and rely on tools like Andale. They have concerns about service providers: are these companies going to be around next year?" Shah said this announcement would reassure sellers that Andale has the financial ability to survive and prosper in this marketplace.

Andale said it signs up 1,000 new paying customers a week, and attributes this in part to a continuous cycle of product innovation. Over the last two years, the company has launched major and minor improvements at least twice a month. "I plan to accelerate the winning formula that got us here," Shah said. "We will continue to innovate, improve and make product investments."

Andale also announced a strategic agreement with eBay in which Andale becomes an eBay Preferred Solutions Provider (PSP) and a member of eBay's Developers Program. Using eBay's API (Application Programming Interface), Andale provides its customers with more reliable, secure and scalable integration into the eBay marketplace. As a PSP, Andale will help large volume eBay sellers effectively market their merchandise on eBay.

Being named an eBay PSP is the latest strategic agreement between eBay and Andale. The two companies have a three-year agreement, making Andale the sole provider of integrated counters and counter-related services to eBay sellers internationally.