SPE.L Regulatory News (SPE)

20 Oct 2006 07:00

Embargoed Release: 07:00hrs Friday 20th October 2006 SOPHEON PLC ("Sopheon") TRADING UPDATE Sopheon, the international provider of software and services that improve thefinancial return from innovation and product development investments issues atrading update.In addition to delivering on contracts closed during the first half of theyear, we have continued to add further new business. Since the end of June, wehave closed 5 new license orders, and 4 license extensions from existingcustomers, in addition to a number of proof-of-concept and other consultancyassignments. As in the past, these transactions have shown considerablevariation in size and we continue to note that performance in any reportingperiod can be materially affected by individual deals. Nevertheless, thepipeline for closing additional business during the traditionally busy finalmonths of the year has never been more active; further new sales in this periodwill add to contracted and recurring revenue visibility for 2006, which isalready in excess of ‚£5m.Importantly, one of the recently closed new license orders - which resultedfrom collaboration with a leading global IT service consultancy - involvesproviding a product portfolio management system to a major automobile company.Phase one of this project will contribute substantially towards 2006.Successful completion of this initial phase has the potential to materiallycontribute to 2007 and beyond, and together with our signing of Electroluxearlier this year, will provide a platform for Sopheon's strategy to addressnew and exciting vertical markets within the discrete manufacturing industry.Also of strategic significance but individually at the other end of thefinancial scale is our ongoing evaluation of a subscription based sales modelfor our software, as noted in our recent interim statement. This program isaimed at extending our appeal to mid-market companies, and we are pleased toreport our first sale using this model.Today, in a separate release, we have also announced further developments inour alliance with Microsoft, describing the planned integration betweenAccolade and Office Project 2007. This integration will increase Accolade'scapacity to bring business users and professional project managers together toincrease the success rate, throughput and value of innovation efforts. Sopheonis an active member of Microsoft's product advisory council for Office Project,as well as being a Gold Certified partner and a Managed partner.The high level of activity in our pipeline and the continued growth of ourcustomer base, taken together with rising interest from business analysts,trade press and other software vendors, indicate increasing maturity of amarket in which we have a leading position. This gives us confidence in theoutcome of 2006 and beyond.For further information contact:Barry Mence, Chairman Sopheon plc Tel : + 44 (0) 1483 685735 Arif Karimjee, CFO Andrew Tan Hansard Group Tel : + 44 (0) 207 245 1100 + 44 (0) 7957 203 685 Floor van Maaren Citigate First Financial Tel : + 31 (0) 205 754 010About SopheonSopheon (LSE:SPE) is an international provider of software and services thathelp organizations improve the business impact of product innovation. TheSopheon Accolade‚® system automates gate or phase-based product developmentprocesses and provides strategic decision support that allows companies toincrease revenue and profits from new products. Sopheon is listed on the AIMMarket of the London Stock Exchange and on the Euronext in the Netherlands. Formore information, please visit www.sopheon.com.ENDSOPHEON PLC