At the Annual General Meeting of Sopheon plc to be held later today, the chairman of the board will give shareholders an update and review of the business. This will include the following statement:
“In our Full Year results, we were delighted to report strong growth with revenues up by 28% to £10.5m, and a turnaround in profits, from an EBITDA loss of £0.2m to a profit of £1.5m. After a difficult 2009, which included taking some very tough spending adjustments, it was gratifying to see a return to growth and such a strong improvement in our bottom-line performance. We also strengthened the Group’s working capital position by refreshing our debt facilities with BlueCrest Capital, and by extending the maturity of convertible debt. This allowed us to enter 2011 with the confidence to expand headcount in targeted areas of the business. Most recently, we announced that we had filled two key leadership positions by hiring two vice presidents responsible for the EMEA region and for product development respectively.
In our trading update on 5 May, we noted that we had concluded 11 new and extension license orders since the start of the year; we are pleased to report this has since been increased to 15. Full year revenue visibility for 2011 from contracted business and recurring revenue streams has now risen to £6.6 million compared to £6.1 million on 5 May. This also compares favorably to the £6.0 million visibility noted at the time of our AGM statement a year ago. Nevertheless, last year this was followed by a very strong close to the second quarter, leading to record first half revenues. As at the time of last year’s AGM announcement, we currently have a very substantial amount of business that we are working to close in the remaining weeks of June. If successful, this would enable us to exceed the strong first half revenue performance of last year. In this regard, customer procurement practices remain thorough and cautious which, as we have noted in previous announcements, can make it difficult to accurately predict the timing and value of individual sales.
Revenue visibility is defined in Note4 of Sopheon’s 2010 annual report which is available from the investor section of www.sopheon.com .