Angoss Reports 12% Revenue Growth in Third Quarter Results
Operating Profit Up 94% Year-To-Date
During the third quarter Angoss completed integration of its analytics engine with recently acquired IntelliMaxx, adding on demand predictive analytics to the IntelliMaxx e-mail, online and mobile marketing suite, enabling users to acquire new customers faster through lower cost, analytics-driven online, e-mail and mobile marketing initiatives. The Company signed a multi-year KnowledgeSEEKER(R) for Salesforce CRM agreement with the Private Client Services unit of Russell Investments, a global investment company with over
Third quarter revenues were
"The addition of IntelliMaxx(TM) as our on demand integrated marketing analytics platform, the maturing of our on demand KnowledgeSEEKER for Salesforce solution as evidenced by both the Russell Investments win and our growing opportunity pipeline, and the continued expansion of our client base for our KnowledgeSTUDIO(R) predictive analytics software suite, have provided a good platform for future growth despite what may be continued soft business conditions in 2010", commented Angoss
Third quarter operating expenses were
As a result of higher revenues and reduced operating expenses third quarter operating profit improved to
Third Quarter Highlights
Notable third quarter highlights included the following:
Marketing - IntelliMaxx. During the third quarter Angoss' integrated marketing solutions subsidiary Sapien Information Services Corporation expanded its relationships with existing customers, with initial introduction of embedded analytics capabilities from Angoss, completion of partnering agreements for data hygiene solutions to complement Intellimaxx offerings, and initial development work completed for the delivery of a proprietary, analytics enriched consumer database to support the IntelliMaxx(TM) solutions portfolio.
Sales - Russell Investments To Deploy KnowledgeSEEKER for Salesforce CRM. During the third quarter Angoss finalized a multi-year subscription agreement with Russell Investments for Angoss FundGUARD, the fund and wealth management industry sales targeting system to drive growth in assets under management. FundGUARD(TM) will be delivered to Russell Investments on the Salesforce.com CRM platform, leveraging the Angoss KnowledgeSEEKER for Salesforce CRM on demand analytics engine.
Risk - Continued Expansion of Financial and ICT Customer Base. Angoss continued to expand its relationship with existing and new financial services and ICT industry clients, adding new customers and expanding existing relationships through software licensing and knowledge transfer transactions with RBC, Sainburys, Fannie Mae, Bank of America, eBay PayPal, US Bancorp, WEA Trust, Fifth Third Bancorp, and Rogers Communications, while growing its license renewal revenues by 27%.
IBM Acquires SPSS. In a notable industry development, IBM announced during the third quarter its planned acquisition of statistical tools vendor SPSS. Key valuation metrics were in range of 2.5 times trailing 12 month revenues, and 9X EBITDA. Among other impacts, this transaction will increase visibility of and interest in analytics as a growth area for technology industry hardware, software and service delivery organizations in future quarters. The Company believes it is among the best positioned companies in this segment to pursue partnering opportunities as the sector continues to mature.
ANGOSS Software Corporation
Income Statement Information
(unaudited, stated in Canadian dollars)
For the period ended Three months ended YTD - Nine Months
August 31, August 31, August 31, August 31,
2009 2008 2009 2008
Revenues $ 2,067,775 $ 1,844,573 $ 6,333,291 $ 5,686,417
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Operating Expenses
General and
administration 378,972 425,805 1,196,916 1,224,951
Sales and marketing 1,061,210 1,180,699 3,401,826 3,354,209
Research and
development, net 351,213 238,434 1,011,926 734,164
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1,791,395 1,844,938 5,610,668 5,313,324
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Income before
the following 276,380 (365) 722,623 373,093
Other income - - - 19,895
Amortization of
capital assets (76,626) (82,810) (258,469) (272,857)
Amortization of
intangible assets (50,000) - (150,000) -
Interest expense (36,538) (9,833) (112,309) (30,455)
Preferred share
expenses - (17,327) - (52,010)
Foreign exchange
gain (loss) 35,119 136,147 (163,718) 125,228
Stock based
compensation (9,005) (13,974) (35,341) (30,120)
----------------------------------------------------
Net (loss) income
and comprehensive
(loss) income
for the period $ 139,330 $ 11,838 $ 2,786 $ 132,774
----------------------------------------------------
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Basic and diluted
(loss) earnings
per share $ 0.02 $ 0.00 $ 0.00 $ 0.02
----------------------------------------------------
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Weighted average
number of shares
outstanding
Basic 7,256,612 7,256,612 7,256,612 7,504,877
Diluted 7,315,231 7,256,612 7,296,529 7,528,732
Selected Cash Flow Information
(unaudited, stated in Canadian dollars)
For the period ended Three months ended YTD - Nine Months
----------------------------------------------------
August 31, August 31, August 31, August 31,
2009 2008 2009 2008
Cash provided by
operating activities $ (1,911) $ 140,519 $ 33,321 $ 207,654
Cash used in
investing activities (217,929) (21,898) (514,663) (192,989)
Cash provided (used)
by financing activities 179,929 494,504 (13,972) (322,224)
Net increase (decrease)
in cash during the
period (39,911) 613,125 (495,314) (307,559)
Selected Balance Sheet
Information
(unaudited, stated August 31, November 30,
in Canadian dollars) 2009 2008
Cash and cash equivalents $ 930,680 $ 1,425,994
Restricted investments 391,000 423,000
Accounts receivable 1,767,461 2,035,651
Prepaid expenses and other assets 466,143 414,201
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Total current assets 3,555,284 4,298,846
------------------------
Capital assets, net 1,140,043 721,197
Intangible assets, net 1,758,000 -
------------------------
Total assets $ 6,453,327 $ 5,020,043
------------------------
Accounts payable and accrued liabilities $ 609,848 $ 659,678
Current portion of deferred revenue 3,205,921 3,875,058
Current portion of capital leases 101,248 102,853
Current portion of term debt 214,286 214,286
Other 166,414 27,763
------------------------
Total current liabilities 4,297,717 4,879,638
------------------------
Long-term debt 1,978,095 -
Deferred revenue 128,963 67,045
Capital leases 250,880 121,970
Term debt 321,428 482,143
Lease inducement 63,822 94,952
------------------------
Total liabilities 7,040,905 5,645,748
Total shareholders' equity (587,578) (625,705)
------------------------
Liabilities and shareholders' equity $ 6,453,327 $ 5,020,043
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About Angoss Software Corporation
Headquartered in
This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including: the risk that the sale of our products and services involves a long sales cycle; the risk that the economic environment and business conditions will remain difficult to predict; the risk of competition in our target markets; the risk that we may not respond adequately to evolving technologies; the risk that we or our customers may have difficulties in introducing our products or services; the risk that we will encounter difficulties in continuing to offer services; the risk that we will encounter difficulties in integrating the operations of acquired companies with our own; the risks of conducting our operations in a variety of international locations; the risk that we may need to record future write-downs of assets arising from our investments in other companies; the risks relating to the costs that we may incur as a result of litigation against us; and other risks described in our filings with securities regulatory authorities, including our annual reports, interim financial statements and similar disclosure documents. Angoss Software Corporation does not undertake any obligation to update this forward-looking information after the date of its initial publication, except as required under applicable law. Sapien Information Services Corporation is not affiliated with Sapien
Note: The
For further information: Lon Vining, Chief Financial Officer, (416) 593-2420, [email protected]
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