(Alliance News) - Sopheon PLC on Wednesday expressed optimism despite warning a number of revenue opportunities have shifted into 2020.
Shares were 11% lower on Wednesday morning in London at a price of 613.00 pence each.
In August, the Minnesota-based enterprise management software firm said 2019 would be weighted to the second half, an expectation which has not changed.
Sopheon had a pipeline of USD30 million going into the final quarter of the year, with overall revenue visibility for 2019 standing at USD28 million, with USD9.9 million of opportunities targeting close dates this year.
"December is traditionally a very busy month where we would expect to close a material number of deals, and this would deliver a strong quarter in historic terms; however we would caution that our ability to execute on this is dependent on customers signing orders consistent with their plans as communicated to us, without unexpected internal delays," Sopheon said.
"In this regard, a number of the opportunities previously expected to sign in the fourth quarter have shifted to 2020."
Sopheon said it has already been chosen as selected bidder in some cases, with the reasons for the delays varying.
Sopheon stressed the overall size of the pipeline has not been reduced, merely the timing of the conversion of opportunities into work as been pushed back. The total pipeline for 2019 and 2020 is 60% higher than the end of 2018, it said.
Chair Barry Mence commented: "The board continues to believe that Sopheon is uniquely well placed to secure a leading position in the new and rapidly emerging enterprise solutions space of strategy execution management. This belief is undimmed by recent operating performance and conversion delays.
"Nevertheless, as a disciplined business, we have continued to tune costs in line with revenue wherever possible, while mindful of maintaining drive behind our strategic priorities. With a solid market position underpinned by a strong balance sheet and a strong pipeline, we continue to face the future with confidence and we fully intend to press on with our own strategic initiatives for long term growth and expansion."
By George Collard; georgecollard@alliancenews.com
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