CIMdata PLM Industry Summary Online Archive

4 November 2008

Financial News

Sopheon Interim Management Statement

Sopheon plc issued 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.

* A definition of how visibility is calculated was provided in our announcement of 25 June 2008.

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