BURLINGTON, Mass. (AP) -- Demandware Inc., which helps companies set up online stores, on Tuesday promoted Jeffrey Barnett to the newly created post of chief operating officer.
Barnett, 49, has been executive vice president, field operations since November 2005. In his new post, Barnett will continue to report to CEO Tom Ebling.
Demandware has emerged as a hot commodity because it's immersed in one of technology's hottest trends — leasing software over the Internet. The concept, known as "cloud computing," requires customers to pay a monthly or annual fee for applications stored in remote data centers instead of buying the software to own and maintain on their own computers.
Demandware has yet to prove itself as a consistent moneymaker, however. Since its 2004 inception, Demandware has posted an annual profit just once — in 2010 when it earned $309,000. In its most recent quarter it reported a loss of $3.5 million, although revenue rose 39 percent to $18.7 million.
Shares fell $1.18, or 3.7 percent, to $31.15, closer to the high end of its 52-week range of $21.35 in July to $34.27 in October.