Model N Back on Track with Sales Hire

NEW YORK (TheStreet) -- A tweak to Model N's MODN sales leadership is all it's taking to bring investors back into the revenue management solutions provider for the life sciences and technology industries.

After plunging more than 42% over the past year, the company is picking up volume again, watching its shares claw their way back up, having gained more than 13.5% over the past 30 days.

New hire Christopher Larsen is now Model N's chief sales officer. Despite having been at the company only since October 2013, his more than two decades of senior executive level experience in the enterprise software market is already making a difference for the company.

For the full year, the company narrowed its revenue range outlook to $76 million to $80 million from the prior guidance of $72 million to $80 million. Last month's earnings report showed that for the quarter, Model N reported results of $21.6 million in revenue and loss per share of three cents, which was above Deutsche Bank's and the street's guidance of 12 cents loss per share on revenue of $21.3 million.

As Deutsche Bank research analyst Nandan Amladi pointed out right Model N's first-quarter results, "operational sales discipline seems to be improving." Amladi reiterated his "buy" recommendation on the stock and raised his price target on the shares to $18 from $12, implying a 50% upside on expectations of improved business performance following the Larsen hiring move. Model N says it will continue to add new hires to its sales team throughout this year.

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