SPE.L Regulatory News (SPE)

SOPHEON PLC

("Sopheon", the "Company" or the "Group")

TRADING UPDATE

Sopheon plc, the international provider of software and services for complete Enterprise Innovation Management solutions, is pleased to provide a further update on the Group's performance for the year ended 31 December 2017.

On 4 January 2018 we reported that continued momentum and market recognition had led to solid growth in 2017, with particular strength in the closing weeks of the year. Final quarter performance included signing two substantial deals, one in the USA and one in Germany, each with a multinational enterprise that is an undisputed leader in its field. These wins further validate the acceptance of our Accolade solution as a global platform, within some of the world's largest and most influential corporations. Volume of transactions was up, with 59 license deals recorded during the year compared to 49 in 2016. This includes three new SaaS (Software as a Service) customers, enhancing recurring revenue alongside the more traditional maintenance and hosting streams connected with our perpetual license sales.

The Board expects that reported revenues for the year ended 31 December 2017 will be over $28m, up from $23m in 2016, and comfortably ahead of current market expectations. The Board expects that both EBITDA and pre-tax profits will be significantly ahead of current market expectations. The year-end net cash position is expected to be $9.5m (2016: $4.2m).

In addition to its impact on 2017, the business performance described above contributes to a higher recurring revenue base going forward, a higher services backlog, and further license events driven by the fourth quarter signings. Overall revenue visibility* for 2018 already stands at $18m, compared to $13m at this time last year.

An important aspect of 2017 growth was the increased adoption of Accolade as an enterprise platform for areas outside our traditional innovation arena. Licenses sold in 2017 included applications for Accolade as diverse as capital expenditure management, IP management, IT project and portfolio management and enterprise initiativemanagement - each representing extension business beyond innovation. We believe our Accolade platform extension strategy represents a significant growth opportunity, and this will be a key area of investment in 2018.

Financial expectations noted above are subject to the completion of year-end financial close and audit processes. Sopheon intends to issue its results for the year ended 31 December 2017, on 22 March 2018.

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About Sopheon. Sopheon (LSE: SPE) partners with customers to provide complete enterprise innovation management solutions including software, expertise, and best practices, that enable them to achieve exceptional long-term revenue growth and profitability. Sopheon's Accolade solution provides unique, fully-integrated coverage for the entire innovation management and new product development lifecycle, including strategic innovation planning, roadmapping, idea and concept development, process and project management, portfolio management and resource planning. Sopheon's solutions have been implemented by over 250 customers with over 60,000 users in over 50 countries. Sopheon is listed on AIM, operated by the London Stock Exchange. For more information, please visit www.sopheon.com

* Revenue visibility is defined on page 6 of our 2016 Annual Report

The information communicated in this announcement is inside information for the purposes of Article 7of Regulation 596/2014.