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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

Form 10-K

Commission File Number 000-26867

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: NONE

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to the filing requirements for the past 90 days: Yes   þ No   o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K: o

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act): Yes   o     No   þ

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The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant, based on the closing sale price of the common shares as reported on the Nasdaq National Market on December 31, 2002 (the last business day of the registrant’s most recently completed second fiscal quarter) was approximately U.S.$12,825,281. Common shares held by each executive officer and director and by each person who was known by the registrant to own 5% or more of the outstanding common shares were excluded from this computation in that such persons may have been deemed to be affiliates of the registrant. This determination of affiliate status is not a conclusive determination for other purposes.

As of August 29, 2003, 26,232,739 common shares of the registrant were outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Not Applicable.

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FORWARD-LOOKING STATEMENTS

Statements in this filing about our future results, levels of activity, performance, goals or achievements or other future events constitute forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in our forward-looking statements. These factors include, among others, those described in connection with the forward-looking statements, and the factors described under the heading “Important factors that may affect our business, our results of operations and our share price” in Item 1 to this report, which is hereby incorporated by reference in this report.

In some cases, you can identify forward-looking statements by our use of words such as “may,” “will,” “should,” “could,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative or other variations of these words, or other comparable words or phrases.

Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or other future events. Moreover, neither we nor anyone else assumes responsibility for the accuracy and completeness of our forward-looking statements. We are under no duty to update any of our forward-looking statements after the date of this report. You should not place undue reliance on our forward-looking statements.

PART I

ITEM 1.     BUSINESS

OVERVIEW

Pivotal Corporation offers Customer Relationship Management (CRM) software that enables mid-sized enterprises worldwide to acquire, serve and manage their customers. Pivotal’s target customers are companies and business units in the revenue range of $100 million to $3 billion. Customer Relationship Management products and services automate and manage marketing, selling and servicing processes. We refer to our software as the Pivotal CRM Suite.

Our products are used in 44 countries and are available in English, French, German, Spanish, Portuguese, Japanese, Chinese and Hebrew. More than 1,600 companies around the world have licensed Pivotal including: CIBC World Markets, Centex Homes LLC, Farm Credit Services of America, HarperCollins Publishers Inc., Hitachi Telecom Inc., Palm, Inc., Pharmacia Corporation, Premera Blue Cross, Royal Bank of Canada, Sharp Electronics Corporation, Southern Company and WebEx Communications Inc. We market and sell our products through a direct sales force as well as through third-party solution providers.

Our common shares are listed on the Nasdaq National Market under the symbol “PVTL” and on the Toronto Stock Exchange under the symbol “PVT”. Our head office is located at Suite 700 – 858 Beatty Street, Vancouver, British Columbia, Canada V6B 1C1, and our telephone number is (604) 699-8000. Our home page on the Internet can be found at www.pivotal.com. Information contained on our website does not constitute part of this report.

Pivotal Corporation was incorporated in British Columbia, Canada in 1990 under the name Pen Magic Software Corporation, and then changed its name to Pen Magic Software Inc. in 1991, to Pivotal Software Inc. in 1995 and to Pivotal Corporation in 1999. During fiscal 2000, we completed the acquisitions of Transitif S.A., a French corporation which distributed customer relationship management solutions; Exactium Ltd., which provided e-selling solutions for Internet and Microsoft standards; and Simba Digital Technologies Inc. During fiscal 2001, we completed the acquisitions of Ionysys Technology Corporation, which provided consulting and implementation services related to Internet solutions; Project One Business Technologies Inc., which provided consulting and implementation services specifically designed for the health care industry; Software Spectrum CRM, Inc. which delivered solutions and consulting expertise in multi-channel contact centers and customer relationship management; and Inform Inc., which specialized in implementation services for the financial services industry. During fiscal 2003, we acquired MarketFirst Software, Inc., which provided technology to help companies automate their marketing processes.

The terms “Pivotal,” “our company” and “we” in this filing refer to Pivotal Corporation, a British Columbia company, and all of Pivotal Corporation’s wholly owned subsidiaries including Pivotal Corporation, incorporated in the State of Washington; Pivotal Corporation Limited, incorporated in the United Kingdom; Pivotal Corporation France S.A., incorporated in France; Exactium Ltd., incorporated in Israel; Exactium, Inc., incorporated in the State of Delaware; Pivotal Technologies Corporation Limited, incorporated in the Republic of Ireland; Pivotal Corporation (N.I.) Limited, incorporated in Northern Ireland; Pivotal GmbH, incorporated in Germany; Pivotal Corporation Australia Pty. Ltd., incorporated in Australia; Project One Business Technologies Inc., amalgamated in

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British Columbia, Canada; Nihon Pivotal K.K., incorporated in Japan; Pivotal Bangalore Software Development Private Limited, incorporated in India; and MarketFirst Software, Inc. incorporated in the State of Delaware.

Pivotal CRM Suite, Pivotal 5, Pivotal Sales, Pivotal Sales — Miller Heiman Edition, Pivotal Assisted Selling, Pivotal Wireless for Sales, Pivotal Sales Analytics, Pivotal MarketFirst, Pivotal Marketing, Pivotal eMarketing, Pivotal Marketing Analytics, Pivotal Service, Pivotal Contact Center, Pivotal eService, Pivotal Wireless for Service, Pivotal Service Analytics, Pivotal eSales, Pivotal Configurator, Pivotal Advisor, Pivotal Quoter, Pivotal Catalog, Pivotal ePartner, Pivotal Partner Management, Pivotal Partner Analytics, Pivotal Integration Engine, Pivotal Lifecycle Engine, Pivotal SyncStream, Pivotal Intellisync, Pivotal Interactive Selling Engine, Pivotal Analytics Engine, Pivotal Intelligent Internet Architecture and Pivotal Wireless are trademarks and/or registered trademarks of Pivotal Corporation. All other company names, product names, marks, logos, and symbols referenced are the trademarks and/or registered trademarks of their respective owners.

On April 29, 2003, we announced the general availability of Pivotal 5. Pivotal 5 is built on a highly flexible, meta-data driven architecture, with a robust set of CRM capabilities. Pivotal 5 features a new product for complex solution selling, integrated marketing automation capabilities via Pivotal MarketFirst, a new user interface and major improvements across the platform to increase usability, enhance speed-to-customization and improve productivity.

INDUSTRY BACKGROUND

In the mid-1980’s, businesses began to implement contact management software to track prospects, customers and customer data. Since then, departmental software products have been developed to track data related to servicing customers on the demand side of the business. Some examples of departmental software products include: sales force automation software, which provides prospect and customer data to sales staff; customer service software which provides customer service request and history to customer service representatives; and marketing automation software to provide campaign, prospect and customer data to marketing staff to generate more demand for products and services. In the 1990s, cross-departmental Customer Relationship Management systems began to emerge that brought departmental data assets together into centralized customer and prospect data repositories while allowing these demand side departments to input their own specific information, providing the company with a unified view of the customer and prospect. Today, Customer Relationship Management has become a business strategy that seeks to optimize profitability, revenue and customer satisfaction by organizing around customer segments, fostering customer-satisfying behaviors and implementing customer-centric processes.

With the appearance of the Internet in the 1990s as a ubiquitous communication network, companies began to provide support over the Internet for field and remote staff who needed access to departmental data assets. As other communication channels have continued to evolve, such as fax, email and wireless communications, businesses have looked for Customer Relationship Management systems that can provide an integrated “real-time” view of customer information across all of these communication channels. In addition, businesses have recognized that the Internet is more than simply a network for allowing their own remote staff to access centralized data repositories, with the Internet providing a backbone for businesses to change the way they interact with business partners and customers.

We believe that the Internet and other communication technologies such as wireless technologies have created a fundamental change in the way many companies conduct business. Today, the Internet goes beyond simple communication. It provides a means for prospects and customers to interact with businesses, and businesses to interact with all their stakeholders, including employees, customers, partners and suppliers in “real-time” across global and corporate boundaries. As a result, there has been a demand for enterprise-wide software products that support stakeholders’ needs to communicate and collaborate with businesses across departments and communication channels.

Today’s demand-side and enterprise-wide eBusiness products support this business need. These software products automate and manage the people and processes related to customer management in order to increase revenues and decrease costs. These enterprise-wide products tie into companies’ supply chain management and enterprise resource planning applications to increase productivity, decrease costs, and increase revenues.

The Impact of Changing Technologies

Developments in technology have dramatically affected the marketplace for Customer Relationship Management products. These developments include:

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	•		Web Services. Technology standards based on eXtensible Markup Language (XML) and Web services are being embraced by enterprises seeking to integrate internal systems and provide collaboration with partners and suppliers in a drive to reduce costs, increase revenues, increase market intelligence and improve customer satisfaction. These standards create the possibility of new enterprise architectures focused less around individual applications and more on a federated model combining applications, possibly under a separate user interface.
	•		Widespread Adoption of Microsoft Technologies. Microsoft Windows Servers and Microsoft .NET platforms offer businesses the opportunity to develop, deploy and maintain information technology systems with increased flexibility on a cost-effective basis. These platforms are also widely used and well understood by technical personnel. With Microsoft Commerce Server, Share Point Server, Content Management Server, and BizTalk Server available, plus the upcoming Real-Time Communication Server, Microsoft is delivering a rich and cost-effective application development platform to support the requirements for integration, application customization and flexibility, document exchange, and communication.
	•		Improvements in Microsoft Application Development Tools. As Microsoft’s Servers and related tools (specifically Visual Studio) become richer, there is a risk that they will overlap with the capabilities of the Pivotal Toolkit, as well as an opportunity to leverage the improved Microsoft tools to gain a productivity advantage over multi-platform competitors.
	•		Rich Clients. From the perspectives of usability and development productivity, the browser is a less effective medium than a rich client. Microsoft WinForms is an available, but not yet widely used, technology designed to support rich clients with the deployment benefits of a browser based application.
	•		Availability of Intelligence Systems. Intelligence systems include customer profiling technologies that enable software to respond to or anticipate user needs with less input from the user through analysis of profiles or actual website visitor behavior. These include guided selling technologies to help users make purchases on the Internet, even for very complex products and services. With these customer-profiling technologies, the customer’s buying experience is personalized and targeted to fulfill its specific needs.

THE OPPORTUNITY

The customers we serve are typically mid-sized enterprises and divisions of large businesses. Many of these businesses are responding to pressures to implement cross-departmental or enterprise-wide business models that put the customer at the center of their business in order to increase revenues, margins and customer loyalty.

We believe that the mid-enterprise market is underserved, and represents a significant opportunity for our enterprise-wide, customer relationship management suite and professional services. We also believe that we are strongly positioned to deliver meaningful results to mid-sized enterprises.

We believe our approach, product architecture and business implementation methods appeal to the requirements of mid-sized enterprises, meaning our products can be easily customized, quickly integrated with current systems and business processes, and rapidly deployed to provide increases in revenues, margins and customer loyalty.

We also believe that mid-sized enterprises require options to help them “start small and grow powerful” with CRM. We believe that mid-sized enterprises require more flexibility in pricing and software delivery options such as hosted solutions; rapid deployment options to get them up and running quickly; risk-sharing agreements and pilot programs to mitigate risk; and pre-integrated marketing, sales, service and partner modules to ensure there’s a clear path to expanding the CRM initiative when required.

We believe that our products are closely aligned with the needs of mid-sized enterprises, offering a sensible set of commonly needed features that can be rapidly customized to match changing business goals and processes. Built on an Intelligent Internet Architecture, Pivotal CRM Suite incorporates many of the technology components at the core of mid-sized enterprises today, including the Internet, Microsoft Windows XP, Microsoft Windows Server, Microsoft BackOffice, Microsoft .NET server platforms and Oracle databases.

Our services are designed to implement Customer Relationship Management in a manner that sets, tracks and delivers achievable business results. Our services approach allows mid-sized enterprises to implement and evolve their Customer Relationship Management systems iteratively over time, ensuring each goal is met, and all customer, partner and employee needs are addressed.

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We believe that our partners are well suited to address the mid-sized enterprise market. While platform partners Intel and Microsoft constitute the underlying architecture in most mid-sized enterprises, our worldwide network of Customer Relationship Management strategists, product experts and certified Pivotal partners understand the needs of the mid-sized enterprise, and ensure achievable business results are delivered rapidly and professionally.

We believe that our business style mirrors the way that the mid-sized enterprise market wants to do business: straightforward, respectful and responsive. Our marketing, selling and servicing initiatives are tailored to the pragmatic business style of mid-sized enterprises, establishing collaborative relationship contracts. As a result, we believe that the cost of our products and services are more predictable than our competitors, addressing a principal concern of mid-sized enterprises.

PIVOTAL PRODUCTS

Our suite includes applications for sales force automation, marketing automation, service automation, contact center management, partner relationship management and electronic commerce. These products enable companies to increase revenues and decrease costs by increasing efficiency within the sales, marketing and service activities that ultimately increase customer acquisition and loyalty. To achieve this, our products connect employees, partners and customers into one unified business network. Our products include Internet-based applications supported by an array of professional services and our global Pivotal Partner Program network of third-party distributors. Our products are designed and optimized for the Internet, Microsoft, Intel and Oracle platforms.

We believe our products:

	•		Enable Businesses to Increase Revenues, Margins and Customer Loyalty. Our products unify sales, marketing and customer service employees and partners around customer processes and interactions. By maintaining all customer information in a shared database, our products make it easy for different users to maximize their contribution to customer relationship management by better capturing customer profiles and building one-to-one customer relationships. We believe this improvement in customer focus enables businesses to increase revenues through improving customer loyalty, which increases both customer retention and customer net value. Our customers also realize decreased costs by streamlining processes and interactions between employees, partners and customers, through more effective and more targeted marketing, sales and service campaigns, the reduction of inefficient communications, and the increased effectiveness of targeted communications efforts.
	•		Improve the Collaboration and Interaction Between Businesses and Their Customers. Using Pivotal products, businesses can transform their static websites into collaborative tools used to increase their customer bases, and to service and sell to existing customers. Prospective customers can obtain information regarding businesses’ products and services over the Internet. Customers can place orders and retrieve information on products and services over the Internet and directly interact online with sales, marketing and customer service departments. This direct interaction can result in improved customer service and generation of leads, as well as lower customer service costs.
	•		Improve the Collaboration and Interaction Between Businesses and Their Partners. Pivotal products enable businesses to improve their efficiency and selling processes by facilitating interaction and collaboration with their partners over the Internet. Our application maintains a shared database consisting of customers’ information related to products, services, customer contacts and sales opportunities. By enabling their partners to access and update the shared database, our products simplify the sharing of information between businesses and their partners so they can jointly service their customers’ needs and concerns.
	•		Enable Rapid Implementation and Simple Customization. Businesses can use our products without significant customization, thereby expediting the implementation process. If they so desire, businesses can easily customize our products to reflect their own internal processes using the industry-standard, business programming language of Microsoft Visual Basic. In addition, businesses can choose one of our products for a particular industry-vertical or micro-vertical: products already optimized and configured for such industries as financial services and healthcare, as well as specific segments within industries, including Retail Banking, Investment Banking/Capital Markets, Private Banking, Asset Management, Commercial Banking, Healthcare Insurance, Real Estate/Construction and Life Sciences (Medical Device Manufacturing). These industry-specific products allow businesses to immediately gain business benefits as we have already done the industry-specific customizations.

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	•		Yield a Low Total Cost of Ownership. Our products can be cost-effectively deployed and customized and thus require few customer resources for ongoing support, system maintenance and end-user training. Our products are also relatively easy for end-users to learn, which results in lower ongoing training costs. In addition, our software applications permit modifications and upgrades to be transmitted to all users, including mobile users, thereby reducing the cost of customization and administration.
	•		Scale With the Growing Needs of Our Customers. Many of our customers require that our products support their growing number of employees, customers and partners. Our underlying architecture enables our customers to expand our products as their businesses grow by adding servers in a number of locations. This capability improves performance and enables our products to support larger numbers of concurrent users.
	•		Increase the Efficiency of Mobile Professionals. Mobile professionals can access our products remotely across local-area networks, wide-area networks or over the Internet by using a number of portable computing devices including laptops, hand-held computers and Internet-enabled cell phones. Mobile professionals also can work disconnected, logging on to transmit and receive information that automatically updates their own files and the shared corporate database. These capabilities increase the efficiency of mobile professionals.

BUSINESS STRATEGY

Our goal is to continue our efforts to maintain and increase our position as a leading global provider of Customer Relationship Management systems serving mid-sized enterprises. We will continue to invest in product and technology innovation while also lowering the overall solution cost and providing more flexibility for customers as they consider how to start in CRM. The key elements of our growth strategy are as follows:

	•		Extend Application and Product Scope. We intend to continue the development of our applications to add new functionality. On April 29, 2003, Pivotal introduced Pivotal 5 which features assisted selling, comprehensive marketing automation functionality, new eService capabilities, and significant platform enhancements to improve flexibility, ease of customization, user productivity, and web services enablement. We believe continued investments in our core products will increase our competitiveness in new opportunities and increase our cross-sell opportunities in our customer base. In addition, we plan to offer new versions of our applications that support a wider variety of international customers and their respective business practices and languages.
			We also intend to continue to develop industry products for specific industry segments (“micro-verticals”) in high growth markets where we believe we can cost effectively generate leads and enhance our product differentiation. In fiscal 2003, we shipped seven Pivotal 5 compliant micro-vertical products including Commercial Banking, Asset Management, Private Banking, Capital Markets, Healthcare Insurance, Real Estate/Construction, and Medical Device Manufacturing. We will continue to develop and launch micro-verticals in other high growth markets.
	•		Further Innovate Service Offerings. We will continue to further innovate our service offerings that we believe will help companies get started with their CRM initiatives. We will also continue to develop our services programs to help customers realize maximum value from their CRM investment. These innovations include a hosted offering, a FastPath program that allows customers to deploy an individual Pivotal module in as little as 20 days, low-cost, India-based professional services, fixed price contracts, and special risk/reward agreements. We believe that our investment in services innovation will further improve our advantage and create ways for the risk adverse mid-size enterprises to enter the CRM market.
	•		Expand Development and Support Capabilities. In fiscal 2003, we established a subsidiary in India where employees are employed in R&D, Professional Services and Technical Support. This important investment lowers the cost of these three critical functions while allowing us to build highly competitive capabilities. We will continue to expand our development and support presence in India as part of our strategy to increase our R&D scale, build out our product line, and support our global customer base.
	•		Deepen Collaboration and Interaction Between Pivotal and Our Customers. In fiscal 2003, Pivotal launched the Customer Office — a new organization chartered for customer care and growth. We believe that this organization, augmented by our Pivotal MarketFirst customer-enabled marketing program, is a highly cost effective way to engage with our customers, help ensure their success, and identify license and service selling opportunities. We believe that this new program

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			will ensure higher levels of customer satisfaction, which leads to increased product sales, and provides us with a more cost effective way to identify and develop selling opportunities inside our customer base.
	•		Deepen Collaboration and Interaction with Members of the Pivotal Partner Program. We plan to continue strengthening our network of strategic relationships, including our Pivotal Partner Program network. The Pivotal Partner Program network includes independent companies that distribute our products, install the software purchased by our customers and provide other software or related services to address specific customer needs. This network has allowed us to focus on our core competencies while taking advantage of the strengths of Pivotal Partner Program members who may have specific industry expertise or better regional presence, which enables them to better address the needs of our customers and provide them with a complete electronic business product.
	•		Extend Relationships with Application Service Providers to Deliver Our Products on a Usage Fee Basis. We will continue to expand our relationships with application service (hosting) providers to provide a way for companies to optionally outsource their Pivotal products and make monthly payments, reducing the total-cost-of-ownership by eliminating the need to invest in communications and hardware infrastructure. In addition, this alternative licensing arrangement enables customers to pay a usage fee to access our software on servers operated by the application service providers.

PRODUCTS AND PROFESSIONAL SERVICES

Pivotal CRM Suite consists of five product suites that help companies control the sales, marketing, service and partner processes core to their businesses. These suites are: Pivotal Sales, Pivotal Marketing, Pivotal Service, Pivotal Interactive Selling and Pivotal Partner Management. In addition, we also market industry-vertical products.

These product suites are comprised of our core applications including Pivotal Sales, Pivotal Sales – Miller Heiman Edition, Pivotal Assisted Selling, Pivotal Wireless for Sales, Pivotal Sales Analytics, Pivotal Marketing, Pivotal MarketFirst, (Campaign Portal, Lead Manager, Direct Marketing Manager, Prospecting Assistant, Event Manager,) Pivotal Marketing Analytics, Pivotal Service, Pivotal Contact Center, Pivotal eService, Pivotal Wireless for Service, Pivotal Service Analytics, Pivotal ePartner, Pivotal Partner Manager, Pivotal Partner Analytics, Pivotal Interactive Selling, Pivotal Quoter, Pivotal Advisor, Pivotal Catalog, Pivotal eSales. These core applications and other leading technology options provide an integrated, collaborative network that helps to manage information, transactions, and interactions for every stakeholder in the customer lifecycle.

The industry-vertical products include the following: Commercial Banking, Asset Management, Private Banking, Capital Markets, Healthcare Insurance, Real Estate/Construction, and Medical Device Manufacturing.

On April 29, 2003, we announced the general availability of Pivotal 5. Pivotal 5 is built on a highly flexible, meta-data driven architecture, with a robust set of CRM capabilities. Pivotal 5 features a new product for complex solution selling, integrated marketing automation capabilities via Pivotal MarketFirst, a new user interface and major improvements across the platform to increase usability, enhance speed-to-customization and improve productivity.

PIVOTAL PRODUCT SUITES

Our five product suites are comprised of a variety of core applications.

The Pivotal Sales Suite

Pivotal Sales provides critical customer information, opportunity management tools, and “best practices” sales methodologies for the enterprise sales force. The core capabilities of the Pivotal Sales product suite include:

•

Quote and Proposal Management

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	•		Consolidated Revenue Forecast
	•		Territory Management
	•		Opportunity Management
	•		Team-Selling Enablement
	•		Best Practices Enablement
	•		Multi-Channel Sales Integration
	•		Product Configuration
	•		Guided Selling
	•		Expense Management
	•		Web-based Collaborative Services
	•		Up/Cross-Selling Automation
	•		Competitive and Industry Intelligence
	•		Product & Service Catalog

Core Applications of the Pivotal Sales Suite

Pivotal Sales enables global sales organizations to sell collaboratively across multiple regions, currencies and channels. With Pivotal Sales, organizations can share information across sales teams, accurately forecast their business, manage pipelines, automatically generate quotes and proposals, and easily configure products and services that meet specific customer needs.

Pivotal Sales — Miller Heiman Edition is an option for the Pivotal Sales application based on the three most popular disciplines — Strategic Selling, Conceptual Selling, and Large Account Management — as taught by Miller Heiman, a leader in sales methodologies.

Pivotal Assisted Selling is a new product (released April 29, 2003) that combines sales automation, guided selling, complex quote creation and price/product configuration in a single out-of-the-box application. Users can quickly configure products and services with flexible and intuitive guided selling capabilities, and then easily create, propose and automatically expire multiple quotes per opportunity that contain up-to-date products, services and pricing.

Pivotal Wireless for Sales enables mobile employees real-time read and write access to critical customer data. Using wireless, hand held devices such as web-enabled cell phones, personal digital assistants (PDAs) and two-way pagers, mobile employees can make informed, timely decisions that result in immediate response to opportunities and increased sales while in the field.

Pivotal Sales Analytics is an analytics package that provides sales professionals with a Web-based tool for data mining and forecast analysis. With the ability to analyze sales history, order history and market trends, among other things at their fingertips, sales managers can accurately forecast across all channels, analyze sales performance by region, identify trends in sales cycle, and extract the knowledge and insight to drive better business decisions.

The Pivotal Marketing Suite

Pivotal Marketing featuring Pivotal MarketFirst is a comprehensive marketing automation product designed for end-to-end management of multi-channel campaigns and marketing processes. It reduces both the cost and time to create smart, multi-wave, personalized campaigns and significantly increases the ability to deliver better leads to the right sales resources at the right time. Pivotal MarketFirst can be deployed either as a standalone solution, or as a product tightly integrated with Pivotal 5 — the company’s newest CRM suite. Pivotal MarketFirst also enables companies to optionally outsource their marketing automation solution, reducing total-cost-of-ownership by eliminating the need to invest in communications and hardware infrastructure. Core capabilities of the Pivotal Marketing product suite include:

	•		Campaign Management & Execution
	•		Lead Capturing and Tracking
	•		Centralized Data Repository
	•		Forecasting: Campaign Impact, Market Shifts and Customer Perception
	•		Customer Profiling & Analysis
	•		Event Management
	•		ROI Calculation and Analysis
	•		Best Practices

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	•		Data Mining
	•		Direct Mail Campaign Management
	•		Collaborative Action Plans
	•		Marketing Automation
	•		List Management & Segmentation

Core Applications of the Pivotal Marketing Suite

Pivotal MarketFirst Direct Marketing Manager™ synchronizes a customer’s marketing database, web site, and multi-channel communications to create a segmented and targeted direct marketing program that delivers improved response rates, higher quality leads and better brand building.

Pivotal MarketFirst Event Manager™ automates labor-intensive tasks associated with Marketing events (including logistics, invitations, registration, scheduling, lead management and budgeting) and facilitates the real-time follow up that turns event attendees into sales leads.

Pivotal MarketFirst Lead Manager™ streamlines lead management, simplifying the process of qualifying, managing, nurturing and tracking leads, thereby focusing sales and improving both lead conversion and sales closure rates.

Pivotal MarketFirst Prospecting Assistant™ delivers consistent, accessible marketing support to the sales team via a Web-based portal that takes the burden off salespeople while accelerating the conversion of prospects to leads.

Pivotal MarketFirst Campaign Portal™ allows distributed marketing organizations to work together more effectively and consistently in order to launch targeted campaigns.

Pivotal Marketing Analytics is an analytics package that provides marketing professionals with a Web-based tool for data mining and data analysis. With the ability to analyze such things as customer profiles, purchasing history, product preferences and market trends at their fingertips, marketing managers can better understand their customers’ buying preferences, product profitability and campaign effectiveness and have the knowledge and insight to more effectively target prospects and drive better business decisions.

The Pivotal Service Suite

Pivotal Service provides customer service professionals with a robust solution to efficiently capture, track, manage, escalate, and resolve customer service or support requests. Core capabilities of the Pivotal Service product suite include:

	•		Integrated Communication Platform
	•		Multi-Channel Interactions
	•		End-to-End Reporting
	•		Service Request Management
	•		Online Request Tracking and Escalation
	•		Service-to-Order Integration
	•		Personalized, 24x7 Self-Service
	•		Knowledge Base Management
	•		Online FAQ
	•		IVR Self-Service
	•		Sales/Marketing Integration
	•		Market-Driven Product Enhancement
	•		Time and Activity Management
	•		Performance Monitoring and Reporting

Core Applications of the Pivotal Service Suite

Pivotal Service is an Internet-based customer service application for employees that enables companies to build customer loyalty, increase revenues and optimize call center performance. Pivotal Service automates the capture, management and resolution of

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customer service and support requests across multiple channels. It integrates with sales and marketing functions to provide service professionals with the tools and information they need to deliver personalized service for improved customer satisfaction.

Pivotal Contact Center transforms call centers into a next generation contact center that supports multiple channels of customer interactions, including voice, email, text chat, Internet collaboration, and fax. By managing customer interactions across all channels, service organizations have the tools and information they need to cost-effectively deliver excellence in customer service.

Pivotal eService helps organizations to reduce the cost of service by giving customers a self-service portal with one-click access to personalized information; simple, easy-to-use self-service reports to keep track of orders, incidents, contracts and service level agreements; quick product registration capabilities; and full text search to help customers solve their problems quickly. This new product, which was released on April 29, 2003, also introduces a personalized message center that presents customers with alerts and time sensitive information.

Pivotal Wireless for Service enables mobile employees real-time read and write access to critical customer data using wireless, hand held devices such as Web-enabled cell phones, personal digital assistants (PDAs) and two-way pagers. Based on the Pivotal Intelligent Internet Architecture, Pivotal Wireless for Service offers a highly flexible product that can be easily tailored to our customers’ service employee needs, for increased productivity, immediate response to incidents, management of service level agreements, increased customer satisfaction and up-sell opportunities anytime in the field.

Pivotal Service Analytics provides service professionals with data analysis. With the ability to analyze customer service request data over various channels, service managers can better understand their customers’ preferences, resource utilization, service activity and performance and have the knowledge and insight to more effectively ensure customer satisfaction.

The Pivotal Interactive Selling Suite

Pivotal Interactive Selling is a comprehensive product suite that enables companies to deliver a personalized online buying or selling experience for customers and sales professionals. Pivotal Interactive Selling simplifies the buying and selling experience for sophisticated products and services with interactive needs analysis and intelligent guided-selling services.

Through Pivotal Interactive Selling, organizations increase sales effectiveness across all channels via comprehensive needs analysis, product cataloging, fixed and dynamic pricing, and configuration capabilities. Pivotal Interactive Selling has the following core features:

	•		Data Repository: Product, Pricing, Sales Data
	•		Dynamic Proposals, Quotes, Reports, Orders
	•		Browser-Based Authoring Environment
	•		Catalog Management
	•		Configuration Management
	•		Guided Product, Pricing, Service Configuration
	•		Web-Based Product and Configuration Management
	•		Site Management
	•		Multi-Currency, Language
	•		Single Source Shipping and Tracking
	•		Quote and Proposal Management
	•		Multi-Channel Sales Management
	•		Integration with Supply Chain Management and Enterprise Resource Planning Systems

Core Applications of the Pivotal Interactive Selling Suite

Pivotal eSales enables organizations to leverage the Internet as a cost-effective selling channel. With Pivotal eSales, organizations can leverage interactive selling integration to offer a rich and personalized online buying experience. Customers have access to detailed product catalogs and product information and guided needs assessment support to help configure complex orders.

Pivotal Configurator creates modeling of products, services, or processes using data, rules, constraints, relationships, and options. Pivotal Configurator provides a comprehensive product that ensures complex orders and quotes are accurate, complete, and valid. It

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enforces business rules while delivering context-based messages that facilitate up-selling and cross-selling, leading to higher value orders. Used internally to improve sales productivity and order accuracy, or externally via a company’s website to help guide buyers through product selection and customization, Pivotal Configurator allows customers, employees and partners to configure products to meet customers needs.

Pivotal eAdvisor is designed to help customers select and purchase products and services via multiple channels. Pivotal eAdvisor helps companies to explore and understand the unique needs of each customer and advise on the specific recommendations that will meet those needs.

Pivotal Quoter manages the ability to automatically generate quotations and proposals.

Pivotal Catalog manages the database and publishing of product or product offerings, their pricing and attributes, as well as the necessary sales encyclopedia of applicable product information.

The Pivotal Partner Management Suite

Pivotal Partner Management empowers companies to more effectively manage their partner relationships. Pivotal Partner Management helps our customers’ partners to become collaborative members of their customer’s extended business team to generate sales, deliver customer value, and keep customers satisfied, while reducing the costs associated with managing those partners.

Pivotal Partner Management Suite has the following core features:

	•		Partner Lifecycle Management
	•		Recruitment Management
	•		Partner Profiling
	•		Closed-loop Lead Management
	•		Sales Tools and Literature Fulfillment
	•		24x7 Order Entry and Tracking
	•		Best Practice Action Plans
	•		Opportunity Management and Forecasting
	•		Marketing Management
	•		Knowledge Base Access
	•		Alliance Management
	•		Partner Performance Reporting and Analytics
	•		Personalized, Role-based Security

Core Applications of the Pivotal Partner Management Suite

Pivotal ePartner is a browser-based product that extends marketing, sales, service and ordering capabilities to our customers’ business partners, enabling them to become effective members of their customers’ extended enterprise to generate sales and deliver customer value. In addition, the Pivotal ePartner ensures that partners are kept up-to-date by providing easy access to product information, training, sales tools, transaction data, and performance analysis reports.

Pivotal Partner Manager is a comprehensive internal tool used to help manage and enable partner relationships and operations. Pivotal Partner Manager enables organizations to collaboratively sell, service and market to end customers, and measure and reward the partner community.

Pivotal Partner Analytics is an analytics package that provides channel managers with an Internet-based tool for data mining and data analysis. With detailed information on the performance and profitability of the partner network by individual partner, segment, or region, channel managers have the knowledge and insight they need to make better business decisions.

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Pivotal Industry-Specific Products

We provide industry-specific products aimed at the financial services (capital markets, private banking, commercial banking and asset management), healthcare insurance, real estate/construction, and life sciences (medical device manufacturing) markets.

Our solutions for financial services are designed to bring the right people and information together at exactly the right moment — so that teams can make smart decisions to win, keep and grow client relationships. We offer separate CRM solutions for the following segments of the financial services market:

	•		Pivotal Capital Markets is a web-based solution designed to help investment banks manage clients, exchange research and close transactions. We believe that by using this product, the corporate finance, trading and research groups engaged in investment banking become a more effective, collaborative team, better able to identify hot leads, deliver targeted research and close the most profitable revenue opportunities. The advantages may include faster return on investment, increased revenues and increased customer satisfaction. Pivotal Capital Markets delivers commonly needed, investment banking-specific features, providing investment banks with the ability to quickly customize, integrate and deploy a product that matches their individual business processes.
	•		Pivotal Private Banking provides tools and information that we believe helps private banks win, keep and grow high value clients. It features an intuitive desktop and one-click access to important client information; client profiling tools; an allocation planner; a flexible relationship model; action plans; team call planning tools; call reporting functionality; and tools to integrate to legacy systems.
	•		Pivotal Commercial Banking enables users to consolidate, maintain, and manage customer information in one centralized location. Based on Pivotal’s three-tier, meta-data driven architecture, the Pivotal solution features a smart desktop, one-click access to critical information, and pre-configured workflow and business rules. It integrates with existing legacy banking systems providing users with a complete view of corporate client information and transaction history. This product includes: client profiling tools that enable bankers to build a comprehensive customer view with detailed information on preferences, share of wallet, credit history, profitability ratings, financial account portfolios, assets, and products and accounts held with competing institutions; action plans; team call planning capabilities; call reporting tools; and a flexible relationship model that allows bankers to track all the different types of relationships that can exist within a financial institution and between customers.
	•		Pivotal Asset Management gives asset managers the tools and information that we believe helps them to deliver a higher level of service to valuable customers, quickly recognize sales opportunities as market conditions change, and increase share of wallet. It features an intuitive desktop and one-click access to important client information; client profiling tools; a flexible relationship model; an allocation planner; action plans; team call planning tools; call reporting functionality, and tools to integrate to legacy systems.

Pivotal Healthcare Insurance delivers a comprehensive set of products for sales, marketing, underwriting, enrollment and renewal of individual and group health insurance plans for Healthcare Payers and Third Party Administrators (TPA) and their agents. It features three distinct products — Pivotal Healthcare FrontOffice, Pivotal Healthcare eBroker, and Pivotal Healthcare eEnrollment — that can be deployed separately to address immediate business needs, or in combination as an end-to-end, tightly integrated solution. We believe these products are uniquely designed to help healthcare insurance companies automate and streamline business processes, deliver enhanced service to all constituents, and improve profits, while ensuring a low total-cost-of-ownership.

	•		Pivotal Healthcare FrontOffice brings powerful and easy-to-use capabilities directly to employees in sales, marketing, underwriting and operations, giving them the tools and information to manage all processes from lead generation to contract creation. It features an extensible plan library; data-driven benefit compatibility rules and mandated plans management; an intuitive configurator for selecting plans and riders; support for multiple rate structures, and multiple group classifications; functionality to auto-assemble PDF-based proposal packages; dynamic benefit summaries; and data-drive workflow tools. It also lays the foundation for easier, more dependable renewals by providing auto-renewal processing, alerting agents to the right information at the right time.
	•		Pivotal Healthcare eBroker is designed with usability, productivity and increased broker loyalty in mind by providing valuable self-service tools to enhance broker effectiveness, improve collaboration, and increase profits. It features online

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			quoting functionality; benefit configuration; rate calculation capabilities; automated, PDF-based proposal generation; competitive intelligence; and support for multiple rate structures, and multiple group classifications. We believe that with this product, brokers can quickly configure products, produce accurate, personalized quotes and proposals, and manage their book of business in a more proactive and responsive way.
	•		Pivotal Healthcare eEnrollment reduces both the time and effort required for agents and group administrators to enroll members by giving them online enrollment capabilities in lieu of paper forms. This intuitive, external-facing application guides agents, group administrators and consumers through the complete enrollment process step-by-step, including only the questions that are relevant for each enrollee. The collected information is then automatically printed on existing state-filed PDF forms for signing. We believe that this online system not only enhances the enrollment experience for agents, group administrators and enrollees, but it also eliminates errors by ensuring that information is accurately collected.

Pivotal CRM Suite for Real Estate/Construction provides a web-integrated template that facilitates the creation of a collaborative framework to manage clients, exchange research and close transactions. The sales agents, marketers and management teams that drive homebuilders become a more effective, collaborative team, better able to track leads, manage the sales process and involve customers in the pre- and post-sales cycle. The advantages may include increased revenues, enhanced customer satisfaction and decreased operating costs. Pivotal CRM Suite for Real Estate/Construction delivers commonly needed, homebuilding-specific features, allowing homebuilders to support their individual business processes in a customized fashion.

Pivotal Medical Device, the company’s first product for the life sciences market, delivers sales, marketing and service capabilities that helps medical device and diagnostic test manufacturers effectively manage complaints, unify customer information and interactions and increase sales visibility across direct and indirect channels. Based on Pivotal’s three-tier, meta-data driven architecture, it features a comprehensive complaint tracking system that we believe helps these organizations follow and adhere to the strict FDA requirements regarding how they must report and manage product complaints.

PRODUCT PRICING

We typically license our products on a “per processor” or “named user” basis. We license our application servers on a “flat fee” basis. All our products may be licensed as a one-time fee for perpetual licenses or on a monthly subscription basis.

PRODUCT AWARDS

The following table lists some of the awards our company and/or products have won:

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