3 Nov 2009 07:00
Embargoed Release: 07:00hrs, Tuesday 3rd November 2009
SOPHEON PLC ("Sopheon" or the "Company") INTERIM MANAGEMENT STATEMENT
Sopheon plc, the international provider of software and services that improve the financial return from innovation and product development investments, issues its interim management statement for the period since 1 July 2009 to the date of this announcement, in line with the requirements of the EU Transparency Directive.
Sopheon's revenue visibility* has increased to 7.6m. This compares to visibility of 8.1m at this time last year, representing a headline drop of 7%. Although the tough economic environment of the last few quarters is showing some signs of improvement, sales cycles generally remain protracted, and pricing is still under pressure. However, extension business from the customer base has held up well and the pipeline for new business continues to show promising activity, with the potential to make the fourth quarter the strongest of the current year.
In earlier statements, we noted that we had boosted investment in product development with the objective of strengthening our competitive position entering 2010. Having completed a number of new product enhancements, as further described below, we believe that we have achieved this objective. In light of the ongoing tough market conditions, we continue to adopt a conservative stance to our operational planning. This stance has underpinned recent implementation of targeted reductions to our staffing levels, and we continue to keep firm control over all overheads. As previously announced, we have also raised 850,000 of fresh capital in the form of convertible debt, half of which was backed by members of the board and management team.
In making cost adjustments, we have been very careful to preserve our ability to fully pursue our promising sales pipeline. Innovation remains a strategic priority at many corporations. Further, there are clear signs that we are beginning to benefit from the unique capacity of our software to provide all-in-one support for innovation strategy, ideation and execution. We are planning for closure on several transactions by year end, from current clients as well as new customers, which would add to the visibility of 7.6m noted above. Nevertheless, our usual note of caution remains pertinent in these economic times; given the nature and scale of our business, reported results in a particular period can be affected by the timing and size of individual sales.
Sopheon's investment and progress in both product and marketing during the course of 2009 reflect our goal of continued leadership of our chosen markets. Earlier in the year we launched Accolade(R) Idea Lab(TM), the first integrated solution on the market that not only facilitates generation and development of ideas, but makes it possible to seamlessly move those ideas into product development for execution. During October, we completed a major new version of our Accolade(R) Vision Strategist(TM) roadmapping software. Principal advances include greater ease of use, and increased support for collaboration throughout the product planning process. Market launch is scheduled for later this quarter. We are also making significant changes to our core innovation process management software. These changes include the introduction of new portfolio management and resource planning capabilities that will expand our differentiation, and deepen our value proposition. Full market launch is scheduled for the start of 2010, but aspects of these developments are already being test-marketed and sold to new and existing customers. In conjunction with product advancements, we have invested in new marketing capabilities that leverage emerging channels such as social media. These new practices have the promise to fundamentally transform the way in which we identify, create and nurture relationships with existing and potential customers.
* A definition of how visibility is calculated was provided in our announcement of 25 June 2008.
For further information contact:
Barry Mence, Chairman Sopheon plc Tel : + 44 (0) 1483 685
735 Arif Karimjee, CFO Vikki Krause Hansard Group Tel : + 44 (0) 207 245 1100 Sarah Jacobs Seymour Pierce Corporate Tel: +44 (0) 20 7107 8000 Finance Floor van Maaren Citigate First Financial Tel : + 31 (0) 205 754 010About Sopheon
Sopheon is an international provider of software and services that help organisations improve the business impact of product innovation. Sopheon's solutions automate and govern the innovation process, enabling companies to increase revenue and profits from new products. Sopheon's solutions are used by industry leaders throughout the world, including BASF, Cadbury, Corning, Electrolux, General Motors, Honeywell, Motorola and SABMiller. Sopheon is listed on the AIM Market of the London Stock Exchange and on the Euronext in the Netherlands. For more information, please visit www.sopheon.com.
vendor