15 May 2008 07:00
Embargoed Release: 07.00hrs Thursday 15 May 2008
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 first interim management statement for the period since 1 January 2008 to the date of this announcement, in line with the requirements of the EU Transparency Directive.
As expected we had a productive first quarter this year, recording revenues 58% higher than in the first quarter of 2007, itself a relatively strong quarter by historic standards. Since the end of 2007 we have closed a total of 13 license orders and extensions, taking our total licensee base to 145. Our consultancy business continued to add new projects both in conjunction with new license orders, and through additional sales to existing customers. Our recurring revenue base has also continued to grow, amounting to over ‚£2.8 million, up from ‚£1.8 million in May last year. As in the past, our reported results in a particular period will be affected by the timing and size of individual sales; however this continues to be offset by increasing levels of repeat business from our growing client base. We are also encouraged that revenue visibility for the full year from contracted business and recurring revenue streams now stands at ‚£5 million compared to full year revenues last year of ‚£6.3 million; meanwhile we continue to work a full sales funnel with additional sales closures expected in the current quarter.
In March we launched the most significant new release of our Accolade software solution since it was introduced to the market more than six years ago. Many of the enhancements offered in this latest version of the software are based on our work with existing customers such as General Motors and Electrolux. These new capabilities position Accolade to move beyond the process manufacturing markets that we have historically targeted and into the large aerospace, defense and automobile sectors. The combination of Accolade and Vision Strategist, the product that came to us through the acquisition of Alignent Software, constitutes the first solution set in the industry to integrate strategic product planning and product development execution. Underlining this advance, AMR Research recently identified Sopheon as the most mature product portfolio management offering in the market today.
Our product advances have been matched by investment in new recruits that bring experience in the new markets we are pursuing. That said, we very much understand the global economic situation continues to remain uncertain, and we weigh each investment decision carefully. We are confident we are making the right choices, and remain positive about the outlook for the coming year.
For further information contact:
Barry Mence, Chairman Sopheon plc + 44 (0) 1483 685 735 Arif Karimjee, CFO Vikki Krause Hansard Communications + 44 (0) 207 245 1100 + 44 (0) 7515 922906 Claire Verhagen Citigate First Financial + 31 (0) 205 754 010 David Newton Seymour Pierce + 44 (0) 207 107 8000 About Sopheon
Sopheon is an international provider of software and services that help organizations 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 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.
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