Sopheon plc, the international provider of software and services that improve the financial return from innovation and product development investments, issues the following trading update for the six months to 30 June 2011.
In our Annual General Meeting announcement issued on 15 June we indicated that we had a substantial amount of business that we were working to close by the end of June. Much of this has concluded successfully, including some spill-over closed in the beginning of July. Accordingly, revenue visibility has risen to £7.8 million, from £6.6 million at the time of the Annual General Meeting.
Due to the fact that some of these orders concluded after the end of June, reported first half revenue is expected to be broadly similar to revenues for the corresponding period last year. As we have previously announced, since the start of the year we have undertaken controlled expansion of staff levels including new leadership for key areas. Most recently, we have added new sales representation in Germany. These actions have led to a higher cost base than the previous year, therefore the reported EBITDA result is expected to be lower than for the first half of 2010. Our overall sales pipeline remains strong.
Details will be provided in our interim financial report, scheduled for release on 25 August 2011. Expectations noted above are subject to completion of the period-end financial close and auditor review processes.
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 BAE Systems, BASF, Corning, Electrolux, Honeywell, Novartis and SABMiller. Sopheon is listed on the AIM Market of the London Stock Exchange and on the Euronext in the Netherlands.
Revenue visibility is defined in Note4 of Sopheon’s 2010 annual report which is available from the investor section of
www.sopheon.com
