Sopheon plc ("Sopheon") 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 2005 together with a business review and outlook.

Highlights:
Turnover: £1.9m (2004: £2.1m)
Loss for the period: £0.9m (2004: £1.3m)
LBITDA: £0.8m (2004: £0.7m)
Twenty transactions were closed in the first half of 2005, comprising 11 new or extension license sales and 9 proof-of-concept and consulting assignments. Offsetting the delayed closure of certain key license orders in June, maintenance and services revenues both increased by 50% over the same period in 2004, reflecting our growing client base of more than 60 licensed customers. Including other closed business, revenue visibility from signed orders and maintenance run rates for full year 2005 now stands at £3.1m, over 70% of reported 2004 revenues.
Sopheon’s pipeline mix has a growing proportion of sales opportunities that are individually larger in potential value and complexity than the historic average. These opportunities generate revenue volatility, but also raise the potential for significant growth. Since the half year point Sopheon has been working on seven such opportunities, one of which has signed its license order, three have engaged Sopheon in a proof of concept project, and the other three have identified Accolade as their preferred solution.
Microsoft continued to demonstrate a commitment to its strategic partnership with Sopheon by supporting a new release of Sopheon’s software both through R&D investment and through marketing activity in Europe and America. Accolade version 6.0, which features integration of core Microsoft technologies, was introduced in the second quarter.
In the period Sopheon raised £1 million in new equity, increasing cash resources to more than £2 million and arming Sopheon to take timely advantage of possible new opportunities for business expansion, maintain investment in product development and market research, and protect and extend its established lead in its chosen markets.