Interim Management Statement
Embargoed Release: 07:00hrs, Tuesday 3rd November 2009
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 2009 to the
date of this announcement, in line with the requirements of the EU Transparency
Directive.
Sopheon's revenue visibility* has increased to £7.6m. This compares to
visibility of £8.1m at this time last year, representing a headline drop of 7%.
Although the tough economic environment of the last few quarters is showing
some signs of improvement, sales cycles generally remain protracted, and
pricing is still under pressure. However, extension business from the customer
base has held up well and the pipeline for new business continues to show
promising activity, with the potential to make the fourth quarter the strongest
of the current year.
In earlier statements, we noted that we had boosted investment in product
development with the objective of strengthening our competitive position
entering 2010. Having completed a number of new product enhancements, as
further described below, we believe that we have achieved this objective. In
light of the ongoing tough market conditions, we continue to adopt a
conservative stance to our operational planning. This stance has underpinned
recent implementation of targeted reductions to our staffing levels, and we
continue to keep firm control over all overheads. As previously announced, we
have also raised £850,000 of fresh capital in the form of convertible debt,
half of which was backed by members of the board and management team.
In making cost adjustments, we have been very careful to preserve our ability
to fully pursue our promising sales pipeline. Innovation remains a strategic
priority at many corporations. Further, there are clear signs that we are
beginning to benefit from the unique capacity of our software to provide
all-in-one support for innovation strategy, ideation and execution. We are
planning for closure on several transactions by year end, from current clients
as well as new customers, which would add to the visibility of £7.6m noted
above. Nevertheless, our usual note of caution remains pertinent in these
economic times; given the nature and scale of our business, reported results in
a particular period can be affected by the timing and size of individual sales.
Sopheon's investment and progress in both product and marketing during the
course of 2009 reflect our goal of continued leadership of our chosen markets.
Earlier in the year we launched Accolade® Idea Lab™, the first integrated
solution on the market that not only facilitates generation and development of
ideas, but makes it possible to seamlessly move those ideas into product
development for execution. During October, we completed a major new version of
our Accolade® Vision Strategist™ roadmapping software. Principal advances
include greater ease of use, and increased support for collaboration throughout
the product planning process. Market launch is scheduled for later this
quarter. We are also making significant changes to our core innovation process
management software. These changes include the introduction of new portfolio
management and resource planning capabilities that will expand our
differentiation, and deepen our value proposition. Full market launch is
scheduled for the start of 2010, but aspects of these developments are already
being test-marketed and sold to new and existing customers. In conjunction with
product advancements, we have invested in new marketing capabilities that
leverage emerging channels such as social media. These new practices have the
promise to fundamentally transform the way in which we identify, create and
nurture relationships with existing and potential customers.
* 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 Group Tel : + 44 (0) 207 245
1100
Sarah Jacobs Seymour Pierce Corporate Tel: +44 (0) 20 7107 8000
Finance
Floor van Maaren 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 product innovation. Sopheon's
solutions automate and govern the innovation process, enabling companies to
increase revenue and profits from new products. Sopheon's solutions are used by
industry leaders throughout the world, including BASF, Cadbury, Corning,
Electrolux, General Motors, Honeywell, Motorola and SABMiller. 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.
END