Embargoed Release: 07:00hrs, Tuesday 4th November 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 interim management statement for the period since 1 July 2008 to the
date of this announcement, in line with the requirements of the EU Transparency
Directive.
Sopheon's revenues in the third quarter were 60% higher than those recorded in
the same period in 2007. This progress has raised revenue visibility* for the
year to £8.1m, compared to £5.8m at this time last year. Although the overall
transaction count during the statement period was down compared to a year ago,
two of the orders were substantial, and our services business remains strong.
We have been encouraged by feedback from recently signed customers suggesting
that, as companies are forced by recessionary pressures to reduce headcount and
other types of resources, they are motivated to find more effective ways of
prioritising innovation initiatives and ensuring that remaining resources are
aligned with the best product opportunities. Such imperatives are well matched
with the capabilities of our solutions. Activity in the sales pipeline
continues to be high, including several opportunities which we expect to close
by year-end that would add to the current visibility of £8.1m noted above.
Despite these positive indicators, we believe that the emerging economic
climate is likely to cause prospective clients to become more deliberate and
rigorous in their buying decisions, potentially delaying the signing of some
contracts. This consideration compounds our usual cautionary concern over the
fact that, due to the nature of our business, reported results in a particular
period will be affected by the timing and size of individual sales.
Sopheon continues to benefit from the strong market position of its principal
offerings. Our Accolade system leads the product portfolio management category
of software solutions both in terms of functional richness and market
penetration. In a report issued in July 2008, AMR Research noted that Sopheon's
software has the greatest traction among all best-of-breed product portfolio
management offerings in the marketplace. We believe that it is important for us
to maintain the current momentum in our growth and maturation as a business and
we have therefore added staff in select, key areas. Our initial planning for
2009 calls for this to continue; nevertheless we are well aware of the global
economic situation and will remain measured and thorough in our approach to
spending, weighing each investment decision carefully.
* 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 Communications Tel : + 44 (0) 207 245 1100
Paul Davies Seymour Pierce Tel : + 44 (0) 20 7107 8000
Parimal Kumar Corporate Finance
Claire Verhagen Citigate First Financial Tel : + 31 (0) 205 754 010
About Sopheon
Sopheon (LSE:SPE) is an international provider of software and services that
help organisations improve the business impact of products innovation.
Sopheon's Accolade® solution automates the product innovation process and
provides decision support for the management of product portfolios. Its Vision
Strategist™ 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.