28 Jan 2009 07:00
Embargoed Release: 07:00hrs Wednesday 28 January 2008
SOPHEON PLC ("Sopheon" or the "Group") TRADING UPDATE
Sopheon plc, the international provider of software and services that improve the financial return from innovation and product development investments, announces significant progress in year-on-year operating performance. Total revenues for the year ended 31 December 2008 are expected to exceed £9 million compared to £6.3 million in 2007. The year-end close process is not complete, but initial indications are that the Group's EBITDA result will be in line with analyst expectations of £900,000. The EBITDA result in 2007 was £113,000.
License fees comprised a higher percentage of the revenue mix in 2008 than in the prior year. Approximately 65% of revenues in 2008 were derived from existing customers, demonstrating their commitment to Sopheon solutions and underpinning the revenue potential for the coming year. We entered 2009 with a base of recurring revenue - comprising annual maintenance, hosting and rental license contracts - that exceeded £3.6 million. Adding ongoing services projects contracted in 2008 to this recurring base, takes full-year revenue visibility* for 2009 to over £4 million. Looking ahead, the sales pipeline remains resilient, in spite of the economic turmoil. The Group has designed its software to help companies that need to exercise cost control in the short-term, while driving forward innovation to meet their long-term strategic goals. In the current climate, this is a strong selling point for Sopheon's solution. Nevertheless, the Group has adopted a prudent stance in its cost management, and will continue to do so in these uncertain times.
As at 31 December 2008, the Group had gross cash balances of over £2.5 million.
Financial expectations noted above are subject to the completion of the year-end financial close and audit processes. Sopheon plans to issue its preliminary results for the year ended 31 December 2008 on 26 March 2009.
* A definition of how visibility is calculated was provided in our announcement of 25 June 2008.
Barry Mence, Chairman, commented:
"We are very pleased to show such material progress in 2008. Market turbulence makes it hard to predict business development in 2009. We are however very encouraged by the apparent match between our software and the needs of major corporations looking to achieve cost containment while continuing to invest in innovation to ensure their future. Our solutions are ideally placed to support such companies in their efforts to achieve this objective. "
For further information contact:
Barry Mence, Chairman Sopheon plc Tel : + 44 (0) 207 245 1100 Arif Karimjee, CFO Vikki Krause Hansard Communications Tel : + 44 (0) 207 7515 922906 Paul Davies Seymour Pierce Corporate Tel: +44 (0) 20 7107 8000 Finance Claire Verhagen 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 Accolade® solution automates the product innovation process and provides decision support for the management of product portfolios. Its Vision Strategistâ„¢ offering automates the strategic product roadmapping process, allowing users to visualise and forecast the future of products, markets and technologies. 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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