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 2010 to date, in line with the requirements of the EU Transparency Directive.
Sopheon’s 2010 performance reflects a strong recovery from the effects of last year’s recessionary climate. Revenue visibility* for the year currently stands at £8.8m, surpassing the company’s total revenues of £8.3m for the full year 2009. Nearly two full months remain for us to add more business, with many of the opportunities forecast to close between now and the end of December coming from existing customers. We are also pleased to report an increase in new-customer orders, and a general resurgence of buyer interest in our market. Since the start of 2010, the sales value of our pipeline activity has risen steadily.
In response to escalating customer and market demands, we have begun to recruit new employees for critical parts of our organization, including positions in sales, product development and services. Positive market trends notwithstanding, end-user buying behavior remains unpredictable and pricing is still under pressure. Accordingly, we continue to make investment decisions with caution.
In the aftermath of the global economic crisis, many companies are once again focusing their attention on growth, and innovation is returning to the forefront as a strategic priority. Eighty-four percent of the senior corporate executives participating in a recent global survey by McKinsey & Company stated that innovation is extremely or very important to their companies’ growth strategy. Principal challenges listed by the group included integrating innovation with strategic planning, selecting the right product ideas to develop, and establishing a consistent process for bringing the best concepts to market. Sopheon’s solutions address these needs head-on. We are unique in offering an all-in-one software system that encompasses support for product strategy development, ideation and process execution. We are energized by the strength of our market position, and by our potential for continued, substantial growth.
* A definition of how visibility is calculated was provided in our half- yearly report published on 26 August 2010.