Sopheon plc, the international provider of software and services that improve the return from innovation and product development investments, announces its unaudited interim results for the six months ended 30 June 2004 together with a business review and outlook.

Highlights:

Turnover : £2.1m (2003 : £1.3m plus £3.8m in divested or terminated business).
LBITDA : £0.7m (2003 : £2.2m)
Revenues in the core continuing software business were more than 75% higher than revenues for the same period in 2003. At 30 June 2004, revenue visibility from booked orders and maintenance run rates for full year 2004 is already at 100% of full year 2003 revenues for the continuing software business.
Sopheon’s software solutions continue to garner market recognition from customers, partners and analysts, and this continues to contribute to orders. Twenty-eight transactions were closed in the first half of 2004, comprising 10 proof-of-concept and consulting assignments, 12 new license sales and 6 extension orders to existing implementations.
Sopheon achieved Gold partner certification with Microsoft, introduced hosting for clients and signed its first financial services sector client. Also, for the first time a single user installation exceeded 1500 seats.
The restructuring activities initiated in 2003 were brought to conclusion. The revenue growth, together with the full year effect of the cost reductions, dramatically narrowed losses. Further funding of £2.4 million was secured through market placing activity and the €10 million GEM equity line of credit, of which facility over 90% remains untapped. The convertible loan was reconstituted into a mandatory convertible and is now classified as equity. This has resulted in a closing net asset position improvement to a positive £1.8 million, compared with negative equity of £1.9 million reported at 31 December 2003.