LONDON (Alliance News) - Software and services provider Sopheon PLC posted a swing to a pretax loss in 2014, as contracts being deferred into 2015 hit revenue, although it said it looks forward to "improved commercial progress" in 2015.
Sopheon proposed a pretax loss of USD1.5 million in 2014, swung from a pretax profit of USD534,000 in 2013, as revenue declined to USD18.3 million from USD20.8 million. Sopheon opted to switch to presenting its financial statements in dollars at the time of its interim results in August as around two thirds of its revenues and staff are based in the US. Its previous year results have been restated accordingly.
The company is shifting its business model, but said that this shift had caused some disruption to its business, and has taken longer than it had planned. It is moving towards what it calls "enterprise" products, which are larger in value, and also require a longer sales cycle than its legacy products.
Sopheon said its revenue visibility going into 2015 was USD10.2 million, reduced slightly from USD10.8 million a year before.
It continued to invest in its sales team and software development, releasing several new products during the year.
Sopheon had previously warned in January that its full-year earnings would be "substantially lower" than the previous year due to a fall in revenue as a result of the delayed transactions.
Shares in Sopheon are untraded Thursday. It last closed at 42.50 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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