LONDON (Alliance News) - Sopheon PLC on Tuesday said it expects 2018 earnings to come in ahead of market expectations following strong revenue growth and reduced expenses.
The enterprise software provider now expects revenue in excess of USD33 million for 2018, up 16% from USD28.5 million reported a year prior.
With higher revenue and lower than planned costs, Sopheon expects earnings before interest, taxes, depreciation, and amortization and pretax profit "significantly" ahead of market expectations.
In 2017, Ebitda totalled USD8.0 million and pretax profit was USD5.1 million.
During 2018 Sopheon contracted 18 new customers compared to 13 the year before. Five of the new wins were for software-as-a-service contracts.
However, the company noted recruitment continued to be a challenge in 2018, with a tight market in particular for US software engineers. Sopheon has modified its recruitment practices in this area and is now seeing rising traction in bringing on new skilled people.
Looking ahead, Sopheon has a very strong pipeline and solid commercial profile in both its US and EU territories, coupled with rising interest from Asia through partnership activity.
"Our plans for 2019 call for a number of new hires, to deliver on our planned investments, and further solidify Sopheon's leading position in our chosen market - as we drive for a fifth consecutive year of financial and strategic growth," the company said in the statement.
Sopheon shares were trading 5.6% lower on Tuesday at 1,227.00 pence each. The company intends to issue its 2018 results on March 21.
